When Dr. William Ngo was shopping for his first home two years ago, he ran into a problem: He got rejected for a mortgage because he had about $250,000 in student debt and little savings.
So the surgeon applied for a loan specifically designed for doctors that came with a higher interest rate but no money down, and just a future work contract as proof of income.
Mortgages tailored to doctors have grown more popular in the last few years, according to the lenders who offer them. Bank of America said it has seen the dollar volume of physician mortgages it issued between 2008 and 2017 increase ninefold because of greater awareness from consumers.
Smaller banks also report increases. Stillwater, Oklahoma-based Bank SNB, owned by Simmons First National, issued $50 million in physician home loans last year and is on track to double that amount this year, said Drew Daniels, a mortgage sales manager who launched the loan program.
Banks are working to woo new doctors into home mortgages