No More Bank of America Zero Down Doctor Loans

While Bank of America’s decision to discontinue Zero Down Doctor Loans is no surprise in today’s mortgage market, the bigger question: how are graduating med students, residents and fellows and established physicians going to purchase a home today?

New physicians looking to buy homes April-June and close between May-July are out of luck with Bank of America’s announcement yesterday. Or so they’ll think. But there’s too many reasons not to purchase today:

  • $8,000 tax credit from Uncle Sam (thanks Barack Obama!)
  • Low interest rates on ARMs and fixed rates
  • Supply of homes on the market
  • Buyer’s market: seller to pay closing costs, price concessions

Physician Relocation Specialists ( has a partnership with niche investors who will continue to make 100% Mortgage Loans to physicians. They clearly realize the value of a long term relationship with physicians and are willing to step up and help now.

What will graduating residents do, who are only prepared to put down 5 or 10% down? If they aren’t using 100% financing (who wouldn’t with the tax advantages), will they be steered to go the FHA route and pay private mortgage insurance (PMI) monthly as well as the upfront mortgage insurance premium (MIP) fee of 1.75% on FHA loans? MIP is charged on all FHA loans, regardless if your LTV is 1% or 97%. What about physicians buying homes that require loans above FHA limits, and don’t have the 10, 15, or 20% down payment, depending on which market they are buying in?

Well, there is excellent news for all physicians, whether they are graduating med school, completing residency or fellowship, or have been working for 20 years. Physician Relocation Specialists has partnered with an investor that offers a true zero down doctor loan, in all 50 states, with NO PMI and fantastic rates. Yes, zero down loans up to $1M and beyond.

When physicians apply for relocation services, they’ll be connected to one of our niche investors. They will then apply for a zero down, 100% financing, exclusive physician mortgage. Even if physicians have already chosen a real estate agent, they can still utilize Physician Relocation Specialists’ services. All they need to do is provide their real estate agent’s contact information so that they may become part of Physician Relocation Specialist’s Preferred Agent Network. Learn more here.

Many of physicians who initially think they’re hung out to dry by Bank of America’s news can apply with Physician Relocation Specialists. And, most should be able to leverage the $8000 tax credit – in addition to writing off mortgage interest and property taxes (always consult with your CPA).

With Match Day 2009 fast approaching, how will med students qualify with all their student debt? Again, Physician Relocation Specialists has the answer: a key relationship with an investor who does NOT count student debt against the new resident as long as it is deferred (and we all know it is, except for the people at Fannie Mae, Freddie Mac, and FHA). So graduating med students should visit and put themselves in a position to take advantage of zero down physician loan in addition to the tax credit of $8000 (Thanks Mr. President).

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