It's no secret that mortgage lenders view doctors as lucrative, low-risk borrowers.
So why is it still so hard for them to qualify for conventional mortgage loans in 2019?
Because nowadays most mortgage lenders offer a customized solution just for doctors. A physician mortgage loan is an exclusive type of home loan specifically for physicians, dentists and other medial practitioners.
Unlike conventional loans, physician loans have fewer restrictions for borrowers. In this company review, we'll be taking a closer look at one of financial institutions that offers this type of home financing: BMO Harris Bank.
Read on to learn more!
About BMO Harris Bank
Based in Chicago, Illinois, BMO Harris Bank is a American bank and an ancillary of the Canadian conglomerate, Bank of Montreal. Millions of customers across eight states count on BMO Harris for their personal and commercial banking, investment and wealth management services.
BMO Harris Bank started began in 1882 when Norman Wait Harris set up N.W. Harris & Co. In 1907, Harris Trust and Savings bank was established. In 1960, it merged with Chicago National Bank and it reformed into Harris Bankcorp, Inc. Then in 1984 it was acquired by the Bank of Montreal, which operates under the name BMO Financial Group.
Today, BMO Harris Bank is the 16th largest commercial bank in the United States by total assets (not counting assets from its parent company). It is also:
- The 2nd largest bank in Chicago by market share.
- The 2nd largest U.S. Subsidiary of a Canadian bank.
- Among the largest banks in the Midwest.
The bank is headquartered in in The Loop, a flourishing Chicago neighborhood.
BMO Harris Bank physician mortgage loan basics
The BMO Harris Physicians' Mortgage Program provides tailor-made home financing solutions to medical professionals at various career stages. The program is designed to help eradicate the various barriers to homeownership faced by doctors.
Eligible borrowers include residents, fellows and practioners who carry or are working toward the following designations:
- Doctors of Medicine (MDs).
- Doctors of Dental Science (DDSs).
- Doctors of Dental Medicine (DMDs).
- Doctors of Osteopathy (DOs).
The bank offers eligible medical professionals with less than 10 years in practice up to $750,000 without requiring a down payment. The bank also offers loans up to $1M with 5 percent down payment, and loans up to $1.5M with a 10 percent down payment.
Medical professionals with more than 10 years in practice are limited to 90 percent financing, meaning they can get up to $1.5M with a 10 percent down payment. Borrowers who do obtain 100 percent financing will not hold equity in the property until they makes adequate principal payments to minimize the outstanding balance of the home loan below the appraised value of the property.
BMO Harris Bank also offers flexible debt-to-income underwriting up to 43 percent. Debt-to-income exceeding 43 percent may be qualified for up to 50 percent on a case-by-case basis.
Is a physician loan from BMO Harris Bank right for you?
Get a quick, free rate comparison here to find out!
Benefits of home financing with BMO Harris Bank
Mortgage loans are available to both new and well-established physicians
This means that residents under the direct supervision of licensed physicians have an equal opportunity to acquire mortgage loans like their experienced counterparts. Here are some other perks to expect when financing with BMO Harris.
No income history required
Another benefit is that the bank does not impose an income history requirement. This means that you don’t have to worry about a lack of income history when applying for a mortgage loan from BMO Harris Bank. With proof of future income, you will be eligible for up to $750,000 with no down payment. Therefore, you should be ready to present evidence that your employment will commence within 60 days of loan closing.
Closing cost discounts are available
When you authorize this bank to automatically withdraw your mortgage loan payment each month from a BMO Harris checking account, you will get a closing cost discount.
For instance, that means $100 closing cost discount when mortgage payments are automatically withdrawn from your BMO Harris Select Checking account, BMO Harris Smart Advantage account or BMO Harris Smart Money Account.
You can also get up to $200 closing cost discount when mortgage payments are automatically withdrawn from your BMO Harris Premier Account. Note that the closing cost discount is only applicable to the refinance and purchase of a primary residence.
No private mortgage insurance needed
BMO Harris Bank does not require licensed medical professionals to have private mortgage insurance (PMI) in order for them to qualify for a physician mortgage loan. No PMI means an opportunity to save thousands of dollars over the life of your home loan.
Finding the right home financing solution for your needs is a serious endeavor. In this physician mortgage loan company review, we hoped to aid your search by covering:
- The basics of BMO Harris Bank.
- How BMO Harris Bank's physicians' mortgage program works.
- The benefits of financing your home with BMO Harris Bank.
To find out if BMO Harris Bank is the best fit for your needs, request personalized rate report here at LeverageRx. It's the easiest (and quickest) way to comparison shop for physician mortgage loans in 2019.