Guide to the Bank of America Physician Loan [Review]

Bank of America offers a fantastic physician home loan program, albeit with a lower limit than provided by many other lenders.

Every beginning is difficult. Expenses to start a business are very high, the down payment for a new house is high, and when starting out as an early-career doctor you often face high expenses and relatively low earnings versus what you will make a short time later.

To address this latter problem, Bank of America created a line of loans specifically for early-career physicians who wish to buy a home while minimizing the amount of cash necessary to do so.

This type of loan is available in all 50 states and covers specializations including:

  • Medical Doctors (MD),
  • Doctors of Dental Surgery (DDS),
  • Doctors of Dental Medicine (DMD),
  • Doctors of Osteopathy (DO),
  • Doctors of Optometry (OD),
  • Doctors of Ophthalmology (MO), and
  • Doctors of Podiatric Medicine (DPM).

The Bank of America physician mortgage loan eligibility requirements include:

  • You must be a United States Citizen, permanent non-resident, or a trustee of a living trust.
  • Your employment start date or confirmed residency should be within 60 days of closing the loan.
  • Your credit score should be 720 or higher.
  • You must have a savings or checking account with the bank.
  • You must have the capacity to pay at least 5% of the purchase price as a down payment from your own funds.

If you are a U.S. Armed Forces veteran, you may have a few more benefits, such as a 25% discount on loan administration or origination fees.

For Residents & Fellows, loan amounts up to $ 850,000  are offered. In addition, you can close up to 60 days prior to your employment start date with proof of a signed contract.

For Practicing Physicians, you can benefit from loan amounts up to $850,000 to licensed doctors and dentists.

Other Highlights:

  • For borrowers looking for other terms to fit their needs, there are fixed-and-adjustable-rate physician mortgage options.
  • No Private Mortgage Insurance (PMI).
    • Many lenders require private mortgage insurance for low-down payment loans. However, Bank of America doesn’t require this due to the low risk of physician borrowers.

Conclusion

Bank of America has a nearly unparalleled reach around the country with a massive network of branches and ATMs. This ubiquity can be helpful if you are an early-career physician as you’ll be able to leverage BofA’s size regardless of where you live in the country.

If you are a doctor who wants to start a promising career and need a home mortgage that requires a low down payment, the Bank of America Physician Loan is a great option. The largest drawback with BofA’s physician loan program is that they limit the amount you can borrow to $850,000. Many of the other physician-loan providers we have reviewed allow for physician loan limits well above $1M.

Be careful, though, as you are evaluating physician loan providers. The mega-banks, BofA included, can often be slow to process loans. This can lead to delays in closing and much stress while you are under contract. Be sure to build in enough time in your purchase contract to give Bank of America sufficient time to process your mortgage.

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