The home mortgage industry is increasingly zeroing in on physician borrowers.
In recent years, a major subsidiary of Atlanta-based SunTrust Banks doubled the number of employees who serve physicians and medical practices because of high demand for mortgages tailored to physicians, CNBC reports. Meanwhile, the dollar value of mortgages Bank of America issued to physicians rose ninefold between 2008 and 2017. The company attributes that to rising awareness of physician-focused loans.
Though they can have a higher interest rate, these loans often require no down payment and accept a future work contract to prove income.
While physicians who are early in their careers often carry significant educational debt that could otherwise make it hard to get a home loan, several factors draw lenders to them nonetheless, according to CNBC:
- They command comparatively high salaries.
- The market for their services is more stable than that of other professionals.
- Lending to physicians might make them amenable to using a lender’s other services later.
“You’re a student, emerging physician, hit with all this debt,” John Cross, Divisional Sales Executive at Bank of America, tells CNBC. “You have a lot of future upside. If you provide a mortgage solution at the beginning of their career, ... from there it turns into all kinds of other conversations.”