Monday, April 11, 2011

Doctor Mortgage

I have learned way more in the past few days about mortgages than I wanted. In the past, medical students who were under contract at a residency program could get a mortgage for 0% down, 0 mortgage insurance, no prepayment penalty, and at current market rates.

Unfortunately, this exact mortgage is all but extinct with the ongoing financial downturn. The cashier at McDonald's who said his salary was $100,000 ruined it for all of us. That said, there are a few options for those of us with huge medical student loans and little-to-no money down. Here are the current options:

1. Huntington Bank As long as they have a branch where you want to move you are set. They will give you a loan exactly as stated above, given you have a decent credit score. Two notable exceptions: Chicago and Miami, where they do not have banks. This was the company that I went the furthest with, unfortunately I am moving to Chicago.

2. Suntrust Bank Same as above as far as I can tell. Only works if you are moving to a state in the southeast.

3. Other Banks Several other banks have physician mortgage programs that do not count deferrable student loans against you and have some other perks. Unfortunately, most/all require a standard down payment 3.5% for FHA, 5% for conventional loans. Most do not require mortgage insurance, but instead they charge an inflated interest rate (by 0.5% typically). An example of a bank that does this is 5/3rd bank and Bank of America.

Mortgage Brokers Be careful using mortgage brokers as they will either want a set amount money at closing (in exchange for them referring you to a bank) or the bank will significantly raise your rates.

A couple of other considerations: compare packages from multiple banks--you may find that a standard loan will result in reduced monthly payments. Best of luck!

4 comments:

Anonymous said...

If you're a Med Student, Resident/Physician in Houston, TX- Encore Bank has this Physician Mortgage Program. Yes, it still exists!

Doctor Mortgage said...

Doctors Mortgage schemes are available to UK doctors as well. Best know lender is Scottish Widows who offer a professional mortgage but others exist as well.

Anonymous said...

Greg Bleyl can originate Dr. Mortgages. This program also offers Construction to Perm, Jumbo and Interest Only.
216-496-0211. Greg.bleyl@charteronebank.com
NMLS 117969
Charter One Bank

Stephanie Arcelay said...

Hello,

I am a Physician Loan Specialist with SunTrust Mortgage

Our Doctor Loan Program is a residential mortgage loan developed specifically for medical residents, interns, fellows, Doctors of Osteopathy (DO), and licensed medical physicians that have completed their residency within the last 10 years.

Our program offers:

• 100% up to $650K
• 95% up to $1M
• 89.9% up to $1.5M

Mortgage insurance is not required - Available for both home purchases and mortgage refinances - Competitive pricing - Both fixed rate and adjustable rates offered - No penalty for prepaying your loan - Gift funds or seller contributions may be used for closing costs

The program is offered in the following States: Alabama, Arkansas, Delaware, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington, D.C. & West Virginia.


With unparalleled commitment to serving physicians’ needs, you can rely on me and my dedicated team of mortgage professionals to work with you every step of the way. I can’t wait to tell you more so call or email today!


Stephanie Arcelay
Asst. Vice President
SunTrust Mortgage, Inc.
615-484-6690 Direct
Email: Stephanie.Arcelay@suntrust.com
Web: https://www.suntrust.com/PeopleFinder/stephanie.arcelay
NMLSR# 897166