There is a new mortgage program for doctors, lawyers, and CPA's that allows them to avoid having to pay the traditional jumbo loan down payment of 20%. It also has several other benefits that save a lot of money in the loan.
The professional program offers:
• 5% down on a house up to $1 million: additional 5% for every extra 250K.
• The 5% down can be gifted from a blood relative.
• No PMI (saves thousands of dollars over life of loan).
• Student loans deferred for 12 months are not counted in qualifying ratios.
The major benefit of this program is the down payment. Traditionally, any loan over $417K is an automatic 20% down, no matter the profession. That's no longer the case with this loan. Now, you can skip the starter house and buy the family home with a minimal down payment.
While the interest rate is a little bit higher, it is a write off. You cannot write off any mortgage insurance, so you get to have a larger write off on your taxes. You can also write off your property taxes.
So on a $450K house, you'd normally have to bring $90K to the table, whereas you'd only have to bring a little over $22K to the table.
If this sounds like something you'd like to take advantage of, I'm always available to show. Contact me any time.