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Before the housing crash, almost every major lender had their own loan program available for doctors. Those loans quickly disappeared once lenders started tightening up on lending portfolio money, and just sticking with loans that met Fannie or Freddie guidelines. However, at least one lender has opened the doors to doctors again.

 

On August 9, 2010, Bank of America launched their new Doctor Loan Program. The program allows qualified doctors to finance up to 95% of their Conventional Non-Conforming mortgage loan. Certain restrictions apply to applicants who are to begin their new employment/residency within 60 days of closing.

A summary of the Loan Program is as follows:

• Maximum Loan to Value (LTV) is 95% (90% if in a declining market)
• No Minimum Loan amount
• Lender Paid Mortgage Insurance (LPMI) is required for loans over 80% LTV
• No Subordinate financing is allowed

In order to qualify, over 50% of your income must come from actively practicing in the following fields:

• Medical Residents
• Existing or Newly Licensed Medical Doctor (MD)
• Doctors of Dental Science (DDS)
• Doctors of Dental Medicine (DMD)
• Dental Surgeons Specializing in oral and maxillofacial surgery (DMD)
• Doctors of Optometry (OD)
• Doctors of Ophthalmology (MD)
• Doctors of Podiatric Medicine (DPM)
• Doctors of Osteopathy (DO)

In addition to actively practicing in any of these fields of medicine, you must also have;

• A minimum credit score of 720
• Documented two years of employment/schooling history
• Maximum Debt to Income ratio (DTI) of 41% for loan amounts of $625,500 or less, and a Maximum DTI of 38% for loan amounts greater than $625,500
• Must have an existing banking relationship with Bank of America prior to the closing date of the loan. (Minimum account requirement is a demand deposit account)

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Source by Joshua Talayka