Bank of America Physician Loan Program
It’s not unusual for physicians to have $200,000 or more in student debt by the time they graduate medical school. This can make getting a mortgage difficult, especially for those who don’t have savings. Fortunately, doctors can use the Bank of America physician loan program. The Bank of America physician mortgage program is so popular that the dollar amount funded has increased nine-fold from 2008–2017.
Why Does Bank of America Have a Physician Loan Program?
Physicians are a profitable demographic for lenders. Doctors often take out large mortgage loans when they start their careers and they pay them off in full earlier than many others. While physicians have high earning potential, they don’t have a work history and normally owe a lot of money in student loans. By offering Bank of America physician mortgage loans, the institution can serve this important demographic.
Because these are not traditional loans, Bank of America has different criteria and guidelines in place. Let’s look at the:
- Proof of Income
- Down Payment
- Interest Rates
- Loan Amounts
- Process for Getting a Bank of America Physician Loan
Proof of Income
If you’ve just graduated from medical school, you might not have started a job yet. While that would be reason enough to get denied by many lenders, you can still get approved for a Bank of America doctor mortgage. You need to show proof of a future work contract when you submit your application. Also, you must start work within 60 days of receiving the Bank of America doctor’s loan.
Down Payment Needed for Bank of America Physician Loans
Gathering a 20 percent down payment is stressful for people who have just graduated medical school. Fortunately, you don’t have to worry about that when you get a Bank of America physician home loan. You can secure a mortgage loan with as little as 5 percent down. Even though you only need to put down a small down payment, you don’t have to purchase private mortgage insurance. That means you can save hundreds of dollars each month. These perks really make the Bank of America doctor loan program stand out.
Bank of America Physician Mortgage Rates
You can choose an adjustable-rate or fixed-rate Bank of America doctor home loan. While the rates are reasonable, they are typically higher than other mortgage loans. You can expect to pay up to 1 point higher than people securing a physician mortgage loan. Of course, you can refinance your home after you get out from under your student debt to get the lower interest rate.
If you have graduated from medical school, you know that you have high earning potential. Instead of choosing a starter home, you probably want to find your dream house, and that’s possible with a Bank of America physician loan mortgage. You can borrow up to $850,000 with the Bank of America physician home loan program. That’s true even if this is going to be your first home. Since you can borrow so much money, your first home might end up being your last.
Who Is Eligible for the Bank of America Physician Loan Program?
Because it’s often referred to as the Bank of America doctor’s loan program, you might think that only physicians can get the loan. However, this loan program is also available for dentists and eye doctors, including specialists such as a Doctor of Dental Surgery and a Doctor of Optometry. Whether you need a Bank of America dentist mortgage, a physician loan, or optometrist funding, you can get it with this company. The guidelines are the same, regardless of your training.
How to Get a Bank of America Physician Loan
Bank of America requires a credit score of 660 for its traditional mortgage loans. However, those who want to get one of the Bank of America doctor loans must have a credit score of at least 720. Physicians also must have a checking or savings account with the financial institution to receive funding. Also, people must be citizens, permanent nonresidents, or trustees of living trusts to get the loan.
Then, eligible parties must gather the down payment and provide proof of employment or a future work contract.
Is a Physician Loan Right for You?
If you have low student debt and can qualify for a traditional mortgage, that is likely the right option due to the lower interest rates. However, the Bank of America dentist loan and physician mortgage program is a wise choice if you have lots of student debt and are still waiting to begin your new job. Even with the higher interest rates, it has perks, such as a lower down payment and more flexible work requirements. Also, avoiding personal mortgage insurance (PMI) means you will have more money on hand to put toward your student debt.