The doctor loan is a fantastic option that allows for up to 100% financing (with no mortgage insurance!) for a primary residence purchase or rate/term refinance. 100% financing is available up to a loan amount of $750k. Loan amounts from $750k to $1MM require 5% down, and loan amounts from $1MM to $1.5MM require 10% down (technically, we finance 89.99%). Fixed and adjustable rates are available. Please note that some scenarios require additional funds down, and cash out refinances have lower loan-to-value limits.
When would I need additional funds down?
In most cases, you may borrow up to the limits above. Additional down payment may be required if you have less than a 720 credit score, if you have limited credit history (see next section), or if the appraisal of the home indicates value below the purchase price or declining values in the area. Additional down payment is also required on condominiums. Other scenarios may also require additional funds. Gift funds from immediate family may be considered in some cases.
What else do I need?
The main items to think about are credit and assets. The credit score is crucial, but you also need a history of credit (exceptions considered on a case by case basis). This requirement can be met two ways: One is to have 3 open and active tradelines other than deferred student loans – so using credit cards can be good! All lines must have been open for at least 12 months and used once within the last 6 months. You could also have a 5 year history of credit with at least 5 open, paid, or closed lines, one of which must have been an installment loan. Depending on how long you’ve been practicing, you will also need 2 to 6 months “reserves” in the bank in addition to what is required at closing (any down payment required and closing costs you are paying). Reserves are calculated based on the monthly cost of your property – so, if your monthly payment is $1,000, you’ll need $2k to $6k in reserves. Additional reserves may be required for additional properties owned.. Gift funds from immediate family may be considered up to certain loan amounts in some cases. You will also need to set up an autodraft of monthly payment from a SunTrust checking account.
When should I start the process?
Now! It is best to get prequalified for a purchase, and rates are still great for refinances as well. For a purchase, you may close on your house up to 60 days before starting your position – for example, if you begin July 1, you may close in either May or June. If you close early, extra months of “reserves” will be required.
What loan terms are available?
Unlike many institutions with doctor programs, SunTrust offers fixed and adjustable rates. The most popular options are the 7/1 ARM and the 30 year fixed. The 30 year fixed is a great choice if you plan to be in the home long term, and your rate will be guaranteed for the life of the loan. However, if you know you may be moving in the next several years, the 7/1 ARM will pay down principal just like a 30 year loan, but will have a lower rate because only the first 7 years are fixed. In years 8-30, on the anniversary of your closing, the rate will adjust based on market rates and can go up or down. It can never be more than 5% higher than your initial rate. Of course, if you move or sell before the 7 year mark, you won’t have to worry about the adjustment. Other ARM terms and a 15 year fixed term are also available.
Self Employment and 1099 Employment
Legislation in the mortgage industry dictates specific guidelines for income verification. Please be sure to discuss your employment type with your loan officer to confirm eligibility. Industry requirements typically mandate a two-year history of non-guaranteed income. However, new or recent non-guaranteed or non-salary employment may be considered on a case-by-case basis. Please ask us for details!
Just like any mortgage loan, you will be asked to prove your income, assets, and creditworthiness. Have the following items handy for when you apply: Copy of your med school diploma and certificate of completion of residency/fellowship/internship, executed contract for employment, most recent month paystubs (if you’re in the position already), 3 months bank statements (all pages – you can pull online), name and contact info for your landlord(s) for the last 2 years.
Medical Doctors (MDs), Doctors of Osteopathy (DOs) and certain practicing Dentists (DMD/DDS) including Orthodontists, Dental Surgeons, and General Dentists, are eligible for the doctor loan program at this time. It is offered to doctors within 10 years of their last formal training (residency, or fellowship/internship, if completed consecutively). Doctors outside of this 10 year mark may be considered in certain limited scenarios or under different loan programs (please ask for details). Because the loan is only for primary residences, you may only have one SunTrust Doctor Loan at a time. You may pay off a doctor loan and get another doctor loan, and you may have other types of mortgages, but cannot have two doctor loans simultaneously. Property must be single-unit. Duplex, Triplex, and other multifamily properties are ineligible.
Available only in Alabama, Arkansas, Delaware, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington, D.C., West Virginia; the following counties in New Jersey: Bergen, Cape May, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union; and the following counties in Pennsylvania: Pike, York, Dauphin, Cumberland, and Perry. Other locations may be considered provided the borrower has had a deposit relationship with SunTrust Bank for a minimum of 12 months prior to application, including California, Colorado, Connecticut, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Vermont, Wisconsin and Wyoming. If we cannot personally handle your loan due to state licensing or regulations, we will refer you to our very best internal partners.
Joshua Feldman, NMLSR# 659173
2016 Platinum Performance Excellence Award Winner
First Vice President, Senior Mortgage Loan Officer
The Feldman-Deas Team
SunTrust Mortgage, Inc. | Take a step toward financial confidence. Join the movement at onUp.com
How can I submit an application for preapproval and/or get more information?
Please fill out the contact box in the upper right corner of this page. In the comment section please specify that you are interested in the Doctor Program. This will put you directly in contact with the First Vice President, Senior Mortgage Loan Officer that specializes in Doctor Loans.
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