Bank of America
Bank of America is one of the original lenders (if not THE original lender) in the physician mortgage space. With over $3 trillion in assets, it’s one of the largest banks in the United States and chances are good that you are familiar with the company. Not surprisingly, they still offer a doctor mortgage product.
We reached out to a Bank of America mortgage officer to get more details about their program and this is what we learned:
- 5% down up to $1,000,000
- 10% down up to $1,500,000
- Residents and fellows with a job lined up can close on a home 90 days before they start.
- You can often exclude your student debt from your total debt when you apply for a mortgage.
- Eligible medical professionals include salaried medical students and medical doctors who are about to begin their new employment/ residency for fellowship within 90 days of closing. Those employed in research or as professor are not eligible.
While they may not have the most competitive program, they are a solid choice for a physician looking for a doctor mortgage, particularly if you’re already banking with Bank of America.
Of course, if you aren’t already a current Bank of America customer, they will require you to have, or open prior to closing, a checking or savings account. Applicants with an existing account with Merrill or Bank of America Private Bank prior to application also satisfy this requirement.
When it comes to reserves, Bank of America requires PITIA (Principal, Interest, Taxes, Insurance, Assessments) reserves of 4 – 6 months, depending on loan amount.
If applicant’s employment does not commence until after closing, in addition to the minimum cash reserves required, sufficient reserves to handle all debt obligations between closing and employment start date up to an additional 90 days must be verified.
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
Citizens Bank
Citizens Bank is one of the largest banks in the Untied States. I bet you didn’t know that it’s headquartered in the smallest state: Rhode Island. With over $160 billion in assets, it’s no surprise that Citizens offers a full range of financial products, including a physician loan.
We contacted a loan officer at Citizens Bank to learn more about their doctor mortgage loan program specifically. Here are details you won’t find anywhere else:
- 5% down up to $850,000
- 10% down up to $1,000,000
- Practicing licensed medical doctors (MD and DO), dentists (DDS and DMD), residents and research physicians are eligible
- Licensed residents, fellows and interns can borrow a maximum of $600,00 (or $400,000 if unlicensed)
- No more than 10 years out of residency
- Self-employed professionals are eligible with a two-year history of self-employment income
- New medical professional graduates who are under contract for residency within 60 days of closing and have not yet obtained a license are eligible
- No private mortgage insurance
- 40% max debt-to-income ratio
- Student loan debt that’s deferred for more than 12 months from the date of closing can be excluded from DTI calculations
- Construction-to-permanent loans available with a maximum of 89% financing
- Fixed rate or adjustable-rate mortgage options
- Interest-only option on certain adjustable-rate mortgage options (max financing at 89%)
When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.
City National Bank of Florida
City National Bank of Florida is a medium-sized bank with over $22 billion in assets. Although they are headquartered in Florida, they offer a physician loan in all 48 contiguous states and are eager to find physicians and other professionals as new customers.
We spoke with a loan officer at City National Bank of Florida to gather details on the doctor mortgage program. Here is what we learned:
- Physicians, Dentists, Attorneys and CPAs are eligible
- 3% down up to $650,000
- 5% down up to $850,000
- 10% down up to $1,250,000
- 10.51% down up to $2,500,000
- 15.51% down up to $3,000,000
- Primary residence and vacation homes are available (higher down payments required for secondary houses)
- Can finance condos but only with a 20% down payment
- Minimum credit score required is 660 but better rates/options require 720 credit score
- Self-employed individuals need to provide 2 years of income verification
When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.
Should you use a Louisiana physician mortgage for your next home?
How can you decide whether or not a Louisiana physician mortgage is the best option for you? Start by assessing where you are in your career. If you are happy in your current position and plan on staying in your area for many years to come, a doctor mortgage will work well for you.
Also, consider the higher interest rates that can sometimes come with these types of mortgages. Is that something with which you are comfortable? Many doctors are, given that these loans are so generous in other aspects. By weighing these factors, you can make a more clear-eyed decision about your suitability for a doctor mortgage in Louisiana.
Examples of doctors who take out physician loans in Louisiana
You may be surprised by the doctors and professionals in the Bayou State that are taking out physician loans. They are very likely just like you, and on similar trajectories. They range from those new to the field to professionals with decades of experience.
An OB-GYN who doesn’t have a down payment
As an OB-GYN, Debra gets a lot of gratification from her work. She loves working at her office in New Orleans and is fond of her staff and her devoted patients. She and her spouse are ready to purchase a home, but prices in the Greater New Orleans region have been escalating. Twenty percent down on a conventional mortgage will wipe out their savings, and then some. A doctor mortgage gives Debra an easier way to access financing. In fact, she was able to qualify for 100 percent financing on her dream home.
Physician who prefers stock investments and wants leverage
Rasheed has worked hard to establish a stellar reputation in pediatrics. After a decade in practice, he is one of the preeminent doctors in his part of Louisiana. With his great income and established job, he is a good candidate for a mortgage, but he doesn’t necessarily want to liquidate his investments to put a lot of money down on a home. Instead, he decided to go with a Louisiana physician loan with high limits and no money down required.
Looking for a physician loan in a different state?
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