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Anyone have recs?

Cadence Bank has a 0% down no PMI program for attorneys in their first five years of practice (counted from your licensure date). I think the rate was 4.125% for a 30-year fixed with auto-pay and direct deposit into a Cadence bank account and 3.625% for a 5/1 ARM with the same. You still need to cover closing costs out of pocket and there’s a 1% origination fee, but it’s good if you don’t have the downpayment but want to move from renting to buying. Tax and insurance need to be escrowed.

Citi Private Bank has a relationship with some biglaw firms. They have a 10.01% down no PMI program. Rates are 3.5% for a 30-year fixed (3.25% if it will be your primary residence) and 3.0% (or 2.75% if primary) for a 5/1 ARM. If you are a 5th year associate or higher, you can take out a HELOC (second mortgage) to cover part of the downpayment. There is no origination fee if the purchase price is above a certain amount (I believe it’s in the $450k-600k range). They do not require a tax escrow or that you have a bank account with them. There is no autopay discount.

I didn’t explore any others in depth, but JP Morgan has a program through its bank that requires 20% down but has good rates. Your firm has to have the relationship though.

Rates above were quoted to me based on my credit and then-current rates (beginning of January 2020).

Remember to keep in mind closing costs and the reserves underwriting will need (usually 3-6 months of P+I+T+I in your bank account immediately after closing). Happy house hunting!

From what I’ve seen, if your firm has the relationship, Citi private bank is probably the best as far as rates, down payment for PMI, etc. I thought First Republic would be more competitive because that’s kinda their schtick with the student loan refis.

LaLiLuLeLo wrote:From what I’ve seen, if your firm has the relationship, Citi private bank is probably the best as far as rates, down payment for PMI, etc. I thought First Republic would be more competitive because that’s kinda their schtick with the student loan refis.

100% agree if you have the downpayment, but Cadence allows for a 0 down option which may help those with student loan debt. I ended up going with Citi because I’m getting a new construction that required a sizeable deposit for upgrades which became most of my downpayment. Otherwise I would have gone with a Cadence 5/1 ARM and refinanced within 5 years.

Any other 0/0 options? Hard trying to get a down payment in an expensive market - NYC and paying loans when not in big law.

Somewhat belated follow-up to the above.
Is it usual for Citi to refuse applicants until they are 3rd-year associates, or is this a recent change?

Are there any refinance programs available for attorneys like what is described above? Or is it only new purchases?

Does anyone know how these work in markets like NYC where the co-op requires 20% down?

Windjammer wrote: ↑

Mon Aug 10, 2020 6:35 pm

Somewhat belated follow-up to the above.
Is it usual for Citi to refuse applicants until they are 3rd-year associates, or is this a recent change?

Credit is tight right now because of COVID, even though interest rates are low. Banks are hoarding capital.

Citi Private had great rates, no PMI, and you don't have to go into escrow.

But some of the lower cost lenders may be able to beat them now. I don't think Citi goes below 3.25% on a 30 year fixed, but retail lenders will.

I took out a mortgage with Citi last fall and they gave me 2.65% for a 10/1 ARM and I think 3.05 (maybe 2.99%) for a 30-year fixed. Was a 3rd year last fall but don't think they had any class-year criteria back then. They were also a pleasure to deal with. I would certainly recommend if they work with your firm.

Thanks all, very helpful responses!

I would reach out to these folks to see what they can offer.

https://www.biglawinvestor.com/marketplace/jd-mortgage/

I was quoted some pretty good rates (for less than 20% down, high COL area where houses are around 1M)

joeshmo39 wrote: ↑

Tue Aug 11, 2020 1:11 pm

Citi Private had great rates, no PMI, and you don't have to go into escrow.

But some of the lower cost lenders may be able to beat them now. I don't think Citi goes below 3.25% on a 30 year fixed, but retail lenders will.

Just refid with them. They were good to deal with. Got 3.125 which seemed like a great deal when I locked four months ago, now not so much. Kind of kicking myself. Could have likely gotten sub 3 and no points with someone else.

I was able to take cash out without pmi which is a plus. Only needed 15% equity for no pmi. They didn’t offer anything less than that for me. Not sure about the varied experiences.

Lacepiece23 wrote: ↑

Wed Aug 12, 2020 8:06 pm

joeshmo39 wrote: ↑

Tue Aug 11, 2020 1:11 pm

Citi Private had great rates, no PMI, and you don't have to go into escrow.

But some of the lower cost lenders may be able to beat them now. I don't think Citi goes below 3.25% on a 30 year fixed, but retail lenders will.

Just refid with them. They were good to deal with. Got 3.125 which seemed like a great deal when I locked four months ago, now not so much. Kind of kicking myself. Could have likely gotten sub 3 and no points with someone else.

I was able to take cash out without pmi which is a plus. Only needed 15% equity for no pmi. They didn’t offer anything less than that for me. Not sure about the varied experiences.

Don't kick yourself for missing out on a 2.99 rate... While some programs are going as low as 1.99, that's probably not what's available if you're doing 15% down and looking for no PMI. As someone who is well aware of the days when mortgages were 15%, kicking yourself over 0.126% or at worst 1.126% of interest is not worth it. All of these rates are insanely low and you're not going to notice the difference in any meaningful way unless you purchased a home at the absolute limit of your financial capabilities.

Sackboy wrote: ↑

Wed Aug 12, 2020 8:47 pm

Lacepiece23 wrote: ↑

Wed Aug 12, 2020 8:06 pm

joeshmo39 wrote: ↑

Tue Aug 11, 2020 1:11 pm

Citi Private had great rates, no PMI, and you don't have to go into escrow.

But some of the lower cost lenders may be able to beat them now. I don't think Citi goes below 3.25% on a 30 year fixed, but retail lenders will.

Just refid with them. They were good to deal with. Got 3.125 which seemed like a great deal when I locked four months ago, now not so much. Kind of kicking myself. Could have likely gotten sub 3 and no points with someone else.

I was able to take cash out without pmi which is a plus. Only needed 15% equity for no pmi. They didn’t offer anything less than that for me. Not sure about the varied experiences.

Don't kick yourself for missing out on a 2.99 rate... While some programs are going as low as 1.99, that's probably not what's available if you're doing 15% down and looking for no PMI. As someone who is well aware of the days when mortgages were 15%, kicking yourself over 0.126% or at worst 1.126% of interest is not worth it. All of these rates are insanely low and you're not going to notice the difference in any meaningful way unless you purchased a home at the absolute limit of your financial capabilities.

Thanks!!! That makes me feel so much better, actually. Was even looking into another refi, but I’m happy now that I read your anecdote and probably won’t even bother.

Just to supply another data point, Suntrust (now Truist) has a good program for high income professionals (like biglaw attorneys). I've used that program twice and been happy both times. Just locked down a 10/1 ARM at 2.675% a few months ago (20% down payment).

I'm looking at Flagstar 5% downpayment mortgage, and I was wondering if anyone in NY had issues getting a buyer to accept a mortgage with low downpayment by any chance?

Anonymous User wrote: ↑

Tue Sep 29, 2020 10:47 pm

I'm looking at Flagstar 5% downpayment mortgage, and I was wondering if anyone in NY had issues getting a buyer to accept a mortgage with low downpayment by any chance?

Assuming you mean NYC, low down payment is generally an issue in these types of markets even if it doesn't make sense. You need to do whatever you can to make the seller comfortable. You'll run into issues with co-ops that have large down payment requirements as well.

UnfrozenCaveman wrote: ↑

Wed Sep 30, 2020 11:00 am

Anonymous User wrote: ↑

Tue Sep 29, 2020 10:47 pm

I'm looking at Flagstar 5% downpayment mortgage, and I was wondering if anyone in NY had issues getting a buyer to accept a mortgage with low downpayment by any chance?

Assuming you mean NYC, low down payment is generally an issue in these types of markets even if it doesn't make sense. You need to do whatever you can to make the seller comfortable. You'll run into issues with co-ops that have large down payment requirements as well.

This is OP.
Yes this is NYC. Would this be a problem even with condos?

Anonymous User wrote: ↑

Wed Sep 30, 2020 3:24 pm

UnfrozenCaveman wrote: ↑

Wed Sep 30, 2020 11:00 am

Anonymous User wrote: ↑

Tue Sep 29, 2020 10:47 pm

I'm looking at Flagstar 5% downpayment mortgage, and I was wondering if anyone in NY had issues getting a buyer to accept a mortgage with low downpayment by any chance?

Assuming you mean NYC, low down payment is generally an issue in these types of markets even if it doesn't make sense. You need to do whatever you can to make the seller comfortable. You'll run into issues with co-ops that have large down payment requirements as well.

This is OP.
Yes this is NYC. Would this be a problem even with condos?

I am not really an expert but no, my understanding is that it would be up to the condo seller if a low down payment is acceptable. The only thing that seller would be worried about is not closing.

UnfrozenCaveman wrote: ↑

Wed Sep 30, 2020 6:25 pm

Anonymous User wrote: ↑

Wed Sep 30, 2020 3:24 pm

UnfrozenCaveman wrote: ↑

Wed Sep 30, 2020 11:00 am

Anonymous User wrote: ↑

Tue Sep 29, 2020 10:47 pm

I'm looking at Flagstar 5% downpayment mortgage, and I was wondering if anyone in NY had issues getting a buyer to accept a mortgage with low downpayment by any chance?

Assuming you mean NYC, low down payment is generally an issue in these types of markets even if it doesn't make sense. You need to do whatever you can to make the seller comfortable. You'll run into issues with co-ops that have large down payment requirements as well.

This is OP.
Yes this is NYC. Would this be a problem even with condos?

I am not really an expert but no, my understanding is that it would be up to the condo seller if a low down payment is acceptable. The only thing that seller would be worried about is not closing.

You're correct. The only thing the seller cares about is closing. The condo, on the other hand (and similarly for coops), use the large downpayment (sometimes more than 20%) as a barrier to entry. And that's just on existing construction. New construction is a whole other ballgame... in some cases, you could put down 60%+ down before even getting to closing.