Life has many milestones and everyone has their own personal benchmarks for success. One that resonates across multiple groups, however, is owning your own home. In order to meet this benchmark, you typically must meet the minimum requirements of amassing an adequate down payment and having your application accepted by a bank in order to secure financing. For medical professionals this can be difficult. 

Research shows over 70% of medical school graduates in the US have student debt and this can range over $300,000 per individual. Because of this, graduating and practicing doctors, dentists, and other medical professionals can find it difficult, if not impossible, to be approved for first-time homebuying via a conventional loan. 

Some mortgage lenders are hesitant to offer a conventional mortgage because of the fear that the borrower won’t be able to make mortgage payments after paying their student debt, personal lines of credit and credit card payments.

Bank of America’s physician’s mortgage provides medical students and professionals with specialized access to a real estate mortgage in order to facilitate getting ahead. Don’t let substantial student debt stand between you and your dreams of home ownership. Check out the pros and cons of this mortgage program to see if it suits your needs and if it can allow you to get ahead of soaring student debt.    

Pros/Cons of Bank of America physician mortgage loans

Bank of America has a couple of options to choose from for medical professionals and graduates looking to own a home as their primary residence (no investment properties). With a Bank of America doctor’s loan, you can fast track your financial future and dive into home ownership at the right time, which could be now. 

Here’s a look at what this program has to offer and how you could stand to benefit, as well as some of its limitations.   

Pros

Student debt is excluded. A large benefit to this specialized mortgage program is that Bank of America loan officers are willing to exclude your student debt from your mortgage application. If you have substantial student debt but little other personal debt and a low debt-to-income ratio (DTI), this can place you at a great advantage. You can potentially be approved for a mortgage with Bank of America that may be difficult to obtain via a traditional mortgage. 

Your choice of mortgage options. Bank of America offers two physician mortgage options including:

• 5% down up to $1,000,000
• 10% down up to $1,500,000

By using your student loan funds and saving money for a down payment at the same time, you can potentially be approved for a mortgage to purchase your new home. 

Get approved before you start your job. You don’t need to be actively employed right now in order to qualify. Through this program, if you have proof of a residency or fellowship that’s about to begin, you can use this as evidence of your income. You can do this up to 90 days, or 3 months, before you actually begin your position. This is an advantage that can allow you to get ahead faster. 

Available across the US. Unlike some other doctor’s loan programs that are only available in limited states, Bank of America’s physician mortgage program is available to borrowers across the entire continental US, making it widely accessible. 

Available to multiple medical students and professionals. This doctor mortgage loan program is available to:

• Medical residents
• Medical fellows
• Dental surgeons (DDS)
• Individuals practicing dental medicine (DMD)
• Optometrists
• Podiatrists (DPM)
• Osteopaths

Cons

As with any program, Bank of America’s doctor’s loan program has a few drawbacks. 

Must have existing checking account with B of A. This isn’t a huge drawback but it can be a minor inconvenience. In order to qualify for Bank of America’s program, you must have a checking or savings account with Bank of America, Bank of America Private Bank, or Merrill.  

Not for all medical professionals. Unlike some doctors’ mortgages, this loan program isn’t available to those employed in medical fields as researchers, veterinarians or professors. 

Must have excellent credit. A definite drawback to Bank of America’s doctor’s mortgage loan is the fact that you need excellent credit in order to qualify. You will also need to show proof of 4 to 6 months reserves for principal interest rate monthly payments, taxes, private mortgage insurance (PMI), and assessments, depending on the loan amount you’re seeking.

In addition, if you won’t start working until after your closing date, you will also need to show proof of sufficient reserves to manage all your debt obligations between closing and starting employment for up to an additional 90 days. 

How to apply

Bank of America doesn’t have an online application process for a doctor’s mortgage. To apply, contact the mortgage division at: 1 (800) 432-1000

You can also find additional information on the bank’s website. 

To be approved, you will need to provide proof of any student loans deferred, as well as your:

• Date of birth
• First, middle, and last names
• Email address
• Phone number

You will also likely be asked to provide additional information during underwriting to support your application. This typically includes: 

• Tax returns from recent years
• Detailed information related to and proof of your present debt
• A letter indicating an offer of acceptance or employment contract for your residency/fellowship
• Proof of education
• Most recent bank statements
• Your social security number

Is using a Bank of America doctor mortgage a good idea?

Bank of America, member FDIC, is one of the original lenders to offer physician mortgage loans. This being said, it’s not presently one of the most competitive programs out there but it may suit your needs. When taking out a doctor mortgage generally, you’ll have to consider whether you want an adjustable-rate mortgage with a low interest rate to start but likely a higher interest rate later or a fixed rate mortgage with the ability to refinance to a lower rate if one becomes available.

If you’re already banking with Bank of America, and you have a great credit score along with money set aside for a down payment, this could be an ideal option. Simply put, this mortgage program could be for you if the only thing standing between you and owning a home is significant amounts of student debt but other aspects of your finances are in good order. 

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