BofA "Doctor" Loans helps new doctors become home owners

New medical professionals have a difficult time qualifying for a home early in their careers because they often have a sizable student loan debt, which in turn makes it difficult for them to save up down payment funds early on.  The BofA "Doctor" Loan aims to help this segment of people.  The benefits of the Doctor Loan include:

--Low down payments.  As little as 5% down on mortgages up to $1 million and 10% down on mortgages up to $1.5 million.  (Minimum down payment requirements vary by property type and location.)

--Student loan debt may be excluded from the total debt calculation.  This helps lower the applicants debt-to-income ratio, which helps them qualify for the mortgage loan.

--Delayed job starts are ok.  The new position can start up to 60 days after the close of escrow of the home purchase.

2 Ways to get Discount on Bank of America HELOC rates 7/16/14

Bank of America HELOC rates 7/16/14

 

For a Loan-To-Value (LTV) below 70% and HELOC loan amount of $300,000 the interest rate for the HELOC would start at 3.935% before discounts.

With the prime rate at 3.25%, this means the rate is:
 3.93% BofA HELOC rate
-3.25% Prime Interest Rate
=0.68% above Prime

There are two ways to get a discount on these rates:

1. If you set up direct automatic payment of your monthly HELOC interest, then you get a 0.25% discount.

  3.935% HELOC rate before autopay
- 0.250% autopay discount
=3.685% HELOC rate after autopay
 -3.250% Prime Rate
 =0.435% above Prime

2. To get even more discount, you could immediately draw $25,000 from the HELOC to get another quarter percent discount.  (You must keep that $25,000 balance on your HELOC for 3 months.)

 0.435% above Prime
 0.250% immediate draw >= $25k discount
 0.185% above Prime