The Bank of America Doctor Loan is the most widely referenced and recognized loan program of its kind. When Bank of America canceled their program in March of 2009, many physicians were challenged to find alternate home loan solutions that would provide them with perks like no money down and no PMI.
We are pleased to announce that Bank of America has launched their Doctor Loan Program in all 50 states as of August 9, 2010. Below are the features of the Bank of America physician loan:
Who is eligible?
- Medical residents
- Existing or new licensed Medical Doctors (MD)
- Doctors of Dental Science (DDS)
- Doctors of Dental Medicine (DMD)
- Dental Surgeons specializing in oral and maillofacial surgery (DMD)
- Doctors of Optometry (OD)
- Doctors of Opthalmology (MD)
- Doctors of Podiatric Medicine (DPM)
- Doctors of Osteopathy (DO)
How much can I borrow, and how much do I have to put down?
- Loan amounts up to $850,000
- 95% LTV (5% down required)
While most physicians will be able to secure 95% financing through Bank of America, certain housing situations will require more money down. Factors like housing type, geography and declining markets may cause down payment amounts to go up. For example, physicians looking to buy an attached home (condos, townhomes, PUDs) in Florida will be required to put 20% down due to the state’s challenged real estate market.
What kind of loan products are available?
- 30YR Fixed
- 15YR Fixed
- 7/1 LIBOR ARM
- 10/1 LIBOR ARM
What are the reserve requirements?
Reserve requirements for loan amounts less than or equal to $625,500 require four (4) months principal, interest, taxes insurance and assessments (PITIA); loan amounts greater than $625,500 require six (6) months PITIA
Some other important things to note:
- Deferred student loans don’t apply to debt-to-income ratio
- You can use future income, as long as your employment start date is within 60 days of closing.
- Using future employment to qualify also requires additional reserves.
- The minimum 5% down required must be from your own funds. You can use gifts, however, for closing costs and reserves.
- The minimum credit score for all applicants is 720. If you and your spouse both apply, you both need a mid-FICO of 720.
Depending on your unique situation, certain restrictions to the above guidelines may apply. If you are interested in a physician loan, contact Physician Relocation Specialists. We can put you in touch with a mortgage banker who specializes in the physician loan at Bank of America.
