Professional Mortgages for CPAs, Attorneys, Doctors, Etc.

30 Replies

Hi BP Community,

I recently heard about professional mortgages that offer low down payments, no PMI, higher LTV ratios, etc. for those of us with professional designations.

A quick google search landed me on BBVA Compass. Has anyone had any experience with this lender or know of any others that offer such a mortgage?

I am curious to know if these mortgages are legitimate and worth looking into. Any help would be greatly appreciated!

There are some great options out there, especially for those professionals just beginning their practices.
Unfortunately we operate in limited states.

Keep looking and I’m sure you’ll find more options.

I don’t think this is really a discount. Seems like a scam to me to trick people.

Loans if it’s a Fannie Mae or Freddie backed are the same weather you are an ex convict, dentist, doctor, or mother Teresa.

I have a doctors loan. It is a fantastic deal. I got mine through SunTrust, but BB&T also offered me one but the deal with SunTrust was better. I bought my house for 0 money down (actually after discounts the bank paid me 1500 at close) and I have no PMI. My interest rate is about 4%, which is slightly higher than what you can get with a traditional loan but only by a half a percent or so, and the no PMI makes up for that. I also have the option to pay it off early with out a
penalty, so I pay an extra $100/ month and every two weeks instead of once a month, this making a full two extra payments per year that go straight to the principle. I was offered a fixed rate vs an ARM that inflates after 7 years, but the interest rate was 1% lower on the ARM so I took the ARM knowing I am selling 3 years after buying.

SunTrust also just introduced a medical professionals loans for those that are not doctors. It has similar terms as the doctors loan.

As for lawyers and CPA’s I can’t speak to that because I am not a lawyer or a CPA. But for me the doctors loan was a no brainer. The only caveat is you cannot use it to buy a rental property. I asked my mortgage broker. However, you can use it to buy a house then rent out part of the house, and you can get a second loan once you have paid 20% of the first one. So if you want to buy a multifamily with it, you can do that, then once you have 20% in you can get another multifamily and move into it and completely rent the first one.

I wanted to do that with my SFH, however the house has appreciated so much since I bought it that it actually makes much more sense to sell it then rent it out.

@Robert Freeborn Thanks Robert, will do.

@Lane Kawaoka Thanks Lane. This is why I am trying to uncover more information about them. They may not be Fannie or Freddie backed.

@Heidi Kenefick Wow, zero down and you got paid at closing! Nice! How long ago was this? 

The SunTrust loan seems like it has a similar "live-in" requirement as an FHA loan except without the PMI, very cool. I am looking into this type of loan for my first purchase as a primary residence too. Unfortunately, their website does not seem to offer one for non-Doctor professionals. This gives me some hope though that they exist. Will keep on looking. Thanks!

It was in 2015. SunTrust has a medical professional loan, but not sure for CPAs. The thought behind physicians loans is that we have a very high debt to income ratio especially during residency, when we make about 50k/year but may have Med school debt >250k. So they don’t look at your debt when evaluating how risky you are as a borrower. They know we don’t have money saved for a down payment, yet are very reliable people and will make our payments, and are guaranteed a high income. I cannot say that all those factors exist in every profession, it is kinda unique situation, but keep on looking. Never hurts to give them a call and ask about it!

@Heidi Kenefick - Just a word of caution: for my bank, doctors and dentist must be within 7 years of finishing school to qualify.  While I love the flexibility you have to do another loan after you've paid it down by 20%, just be sure that you plan for that 7 year period (If sunrise has it) so you aren't taken by surprise.

Here is a link to Sun Trust, I could not find a link to BB&T but it is an option I have been looking at too as a new graduate.

https://www.suntrust.com/home-mortgages/buying-a-home/mortgage-loan-types/doctor-loan-programs 

Originally posted by @Ron Trinh :

Hi BP Community,

I recently heard about professional mortgages that offer low down payments, no PMI, higher LTV ratios, etc. for those of us with professional designations.

A quick google search landed me on BBVA Compass. Has anyone had any experience with this lender or know of any others that offer such a mortgage?

I am curious to know if these mortgages are legitimate and worth looking into. Any help would be greatly appreciated!

 They are just ARMs with higher 30YF-type rates and LPMI. A lot of these professionals are horrible at math if you stroke their ego (doctor's notoriously). That's it.

Car salesmen do the four square thing. Whatever you aren't focused on, that's where they get you. So if you're focused on "no PMI!" and "Low Down Payment!" they're getting you on rate and the fact that it's an ARM. ARMs are supposed to have significantly lower rates, but if you see a rate normally advertised as a 30YF, you don't notice and that's that.

Thanks Alex. And thanks for letting me know a lot are ARMs, Chris. I have still yet to speak to anyone at BBVA where I did some research. I would only consider applying for it if fixed rate.

Just an update for everyone that responded here as I have dug in quite deep and am working with a mortgage broker at the moment. BBVA Compass does offer a professional mortgage for Doctors, Attorneys, and CPAs. They can do up to a 95% LTV, no PMI and no reserve requirement. I am likely to use them when purchasing my first residence early next year in 2019.

@Alina Vengerov Hi Alina, I have not locked in a rate yet (still shopping for a place), but yes BBVA's professional mortgage offers fixed rate mortgages. If you want, I can connect you to the mortgage officer I am working with and he can help answer any questions you might have. Feel free to PM me.

Ron, thanks so much for the information and updates. I was considering Flagstar's professional loan (I am an attorney 5 years out of law school) but they only offer 5 or 7 year ARMs (with PMI and low and no down payment options). My interest rate quote for DC market seems a little high at 4.25 — I will check out BBVA. Thanks!

@Ron Trinh

I got a loan for primary home in doctors special program from capital bank / first Tennessee bank.

0% down ,no PMI,3.85% interest .

They offer loans in multiple states .

They offered loan for second/ vacation home at 5-10% down.

Originally posted by @Bhaskar Pusuluri :

@Ron Trinh

I got a loan for primary home in doctors special program from capital bank / first Tennessee bank.

0% down ,no PMI,3.85% interest .

They offer loans in multiple states .

They offered loan for second/ vacation home at 5-10% down.

I was having lunch in Jackson MS one day  and I asked the banker  How these young doctors were buying 500 to 700k homes and furnishing them and driving Benz's .. I had rented a home short term in one of the most prestigious neighborhoods in Madison MS  and during my walks and stuff would just notice how young some of the homeowners were and they were wearing scrubs ,  So I curious how Young medical professionals could be buying that  expensive of place.. and I knew they owned because there were only 2 rentals in the entire development ( as CCRs did not allow rentals) the 2 were owned by the developer and I was in one of them. 

Banker said in their market for Doctors they has a zero down program  ( I did not inquire about rates.) they must bank with them so auto draft.. they would also give another 100k for furnishings.. as they knew the wife would need that.. 

So that's how it was done there..  I am not familiar with that program on the west coast not that it may not exist but I had never heard of it or saw it..  My core bank in Oregon banks a lot of dentists and Doctors but they don't do resi loans. just business loans for their practices.  And I know those will get zero down type deals. 

Banks and the like can do this for certain pro's because 1) they are high income earners and 2) certain industries are nearly recession-proof.  It makes the borrower attractive.  Healthcare is one of these professions.  Have you ever seen an unemployed doctor or nurse?  Well, maybe you have, but they are RARE. 

 People will always need healthcare services, therefore jobs in the industry will be omnipresent.  Plus, for the last decade+ there has been a drastic shortage of doctors, nurses, PTs, surgeons, and others.  Nurses especially.  In some markets, these folks can literally write their own ticket.  We're talking double-digit sign-on bonuses, student loan forgiveness, and salaries that are 25-40% more than national average.  Can you say disposal income?

Originally posted by @Dave Rav :

Banks and the like can do this for certain pro's because 1) they are high income earners and 2) certain industries are nearly recession-proof.  It makes the borrower attractive.  Healthcare is one of these professions.  Have you ever seen an unemployed doctor or nurse?  Well, maybe you have, but they are RARE. 

 People will always need healthcare services, therefore jobs in the industry will be omnipresent.  Plus, for the last decade+ there has been a drastic shortage of doctors, nurses, PTs, surgeons, and others.  Nurses especially.  In some markets, these folks can literally write their own ticket.  We're talking double-digit sign-on bonuses, student loan forgiveness, and salaries that are 25-40% more than national average.  Can you say disposal income?

the banker i talked to in MS  said they then have a client basically for life.. all their banking needs ... thats one way to retain clients for years and years.