Julien Pham, Realtor®
REALTY ONE GROUP
English French Dutch Vietnamese

Please note: This is a add-on, partnered service offered through our preferred lender Bank of America to help my clients with their home buying in Las Vegas, and not a service I offer personally at this time. If you need additional information, please let me know.

Due to the dislocation in the current markets, the decision has been made to discontinue the Bank of America Dr Loan program. For those of you not familiar, the Dr Loan program allowed up to 100% financing, loan amounts to $1 million, with no mortgage insurance and at conforming conventional pricing.

Although the Doctor Loan Program has historically performed well, the fact that they have a high LTV and no Mortgage Insurance makes these loans unsaleable in the Secondary Market. As a result, these loans absorb balance sheet availability with high capital reserve requirements and limit our ability to deliver other opportunities to reach a wider customer base. Recently, our partners that manage our lending portfolio (Balance Sheet) have provided much improved Nonconforming pricing for loans up to $1.5M. This is an opportunity we would like to continue and reach a wider customer base however; programs like the Doctor loan compete for balance sheet allocation and reduce our ability to take more Nonconforming loans.

We are constantly working with our internal partners to optimize customer and shareholder value and we will continue to assess the viability of this program as the market begins to stabilize.

ALTERNATIVE:

So, now is the time to begin selling the benefits of FHA as the alternative for these customers. As you know, the downpayment requirement is now only 3.5% and the borrower can finance the Up Front Mortgage Insurance Premium (UFMIP) into the loan amount. With FHA limits now up to $729,750, (available in Visual Mortgage on Friday, March 6^th) many loan limit requests can be met.

Julien Pham, Realtor®REALTY ONE GROUPEnglish French Dutch Vietnamese

Julien Pham, Realtor®
REALTY ONE GROUP
English French Dutch Vietnamese