Physician Mortgage
Who Qualifies for the Physician Mortgage?
Individuals with the following credentials qualify for a Physician Mortgage
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Medical Residents
Existing or Newly Licensed Medical Doctors (MD)
Doctorate of Dental Science (DDS)
Doctorate of Dental Medicine (DMD)
Doctorate of Optometry (OD)
Doctorate of Ophthalmology
Doctorate of Podiatric Medicine
Doctorate of Osteopathy
Individuals may close on a loan up to 60 days prior to starting a new position.
What are the Parameters for the Physician Mortgage?
Down Payment- The minimum down payment is 5% for the Physician Mortgage. 5% of the transaction must be from your
own funds. Anything over 5% may be gift money.
PMI?-
NO PMI (Private Mortgage Insurance).
Loan Amount-
The maximum LOAN amount is $850,000. However, there is a loan program with a loan amount up to
$1,000,000 with 15% down payment and up to $2,000,000 with 20% down payment.
Credit Score-
The minimum credit score is 720. We take a look at all three credit scores and drop the highest and lowest
credit scores. The middle score must be above 720.
Reserves-
Reserves are your monthly Principle, Interest, Property Taxes and Home Owners Insurance.
Any loan amount that is greater than $625, 500 requires 6 months reserves. Any loan amount that is less
than or equal to $625,500 requires 4 months reserves. RESERVES CAN BE IN A RETIREMENT
IRA, 401K ECT. THEY DO NOT HAVE TO BE LIQUID. RESERVES CAN BE A GIFT.
How much of a loan can I qualify for?
The maximum Debt-To-Income ratio* for loans less than or equal to $625,500 is 41%. The maximum Debt-To-Income ratio for
loans greater than $625,000 is 38%.
*To calculate your Debt-to-Income ratio, divide all of your monthly liabilities (minimum payments on car loans, credit cards,
personal loans, student loans not in deferment, potential housing payment, and monthly property tax) by your monthly income.
This will give you the Debt-to-Income ratio we use.
For Example: Jim has $500/month in car payments, $500/month in credit card payments. His new mortgage payment would be
$2,000/month. His new monthly property tax bill would be $600/month. He makes $180,000/year.
Total Monthly liabilities: $3,600 Total Monthly Income: $15,000
3,600/15000=Debt-To-Income is 24%
What loan terms are available?
The Physician Mortgage is available in 30 years, 15 years, 5 Year ARM, 7 Year ARM and 10 Year ARM terms.
What would my rate be?
Rates are determined by market, credit score, down payment %, and term. However, with our program, you receive preferred
interest rates no matter what your down payment is. Please ask for a free quote!
How much does the Physician Mortgage cost?
A great benefit of the Physician Mortgage is that we do not charge any additional origination fees to make up for the PMI or down
payment. I would be happy to give you an estimate of typical closing costs in your area of the country.
What Else?
 We typically ask for 30 days to close, however, “rush” closings are available upon request.
 No Prepayment Penalties
 Physicians who are self-employed must have at least 1 year of documentable self employment history to consider their
self employment income. If only 1 year is available, income total must match what physician previously made prior to selfemployment.
 Student loans are not taken into consideration if they will be in deferment for at least 12 months from close date or if you
have at least 6 months of residency left.
 You can purchase a Single Family Residence or Condo. Investment properties and multifamily units are not eligible under
this program but would qualify under another.
 Co-applicants are allowed. However, at least 50% of the income stream must come from the Physician.
Why Use Me?
I am specifically licensed to fund mortgages for physicians from all 50 states through the Physician Loan Program.
We LOVE physicians! We desire to have a long term relationship with you and your family. Here are a number of benefits to joining our family as a
physician.
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Preferred Interest rates on your mortgage along with all of your deposit accounts.
Fees waived on Bank of America Checking and Savings accounts.
Complementary financial advisor from our investment specialist with Merrill Edge.
A national bank that will be there no matter where you relocate to.