This regularly-scheduled sponsored Q&A column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. Please submit your questions to him via email for response in future columns. Enjoy!
Question: Are there any loan options you’d recommend if I don’t have 20% or more saved up for a down payment?
Answer: There are an abundance of loan products on the market that cater to different professions, down payments and financial circumstances that you should consider. “Rate shopping” is easy and moderately effective if done correctly (e.g. compare the APR not the interest rate), but “product shopping” can be much more valuable and something an informed real estate agent can assist you with.
Here are some of my favorite loan programs and the lenders I work with who provide them:
Homeowners Buying And Selling
Second Trust/HELOC Program from First Home Mortgage: Jake Ryon ([email protected], 202.448.0873)
This is a great program for current homeowners who will be buying and selling simultaneously. It allows you to use the future proceeds from your home sale to make a larger down payment on your new home, before selling your current home.
Through First Home Mortgage, Jake Ryon partners with local banks and credit unions to provide you with a second trust that allows you to put as little as 5% down up to nearly a $1,000,000 loan amount. The second trust finances the remaining amount of your down payment (e.g. 15% if you put down 5%).
The second trust payment is interest-only, can be paid off any time, and can be used like a bridge loan so you can purchase your next home without a home-sale contingency.
Doctor Loan Program from SunTrust: CJ Kemp ([email protected], 301.651.4189)
The Doctor Loan Program is a residential mortgage loan specifically created for licensed medical professionals to make obtaining mortgage financing easier and more hassle-free. It recognizes the financial toll of medical school and strong, stable future income post-graduation. The rates on these loans are also fantastic!
Eligible Doctors include:
- Licensed Residents/Interns/Fellows in MD and DO programs
- Medical Doctors
- Doctors of Osteopathy
- Doctors of Dental Medicine/Surgeons/Orthodontics/General Dentists (DMD/DDS)
- Psychiatrist licensed as a Medical Doctor
Available financing terms include fixed and adjustable rate mortgages for purchases and rate/term & cash out refinances.
- 0% down up to $750,000 loan amount
- 5% down up to a $1M loan amount
- 01% down up to a $1.5M loan amount
- No mortgage insurance required!
Large Loan Amounts
Non-Confirming Jumbo Loan Program from Wells Fargo: Email me for contact info at [email protected]
It’s not just doctors who can find low down payment options without mortgage insurance for high-value (jumbo) loans. Wells Fargo’s “Professionals” Program lets you put 10.01% down on loans from $485,000 up to $1,000,000, and $1,000,000 to $1,250,000 with 15% down, without any mortgage insurance and the rates are incredible.
They have options for fixed and adjustable mortgages as well. A high credit score and strong income are key factors for qualifying. It’s referred to as the “Professionals” Program because it’s popular amongst high earning, non-medical professionals like lawyers and consultants.
Low Down Payment
Mortgage Insurance Payment Eliminator from McLean Mortgage: Troy Toureau ([email protected], (301) 440-4261)
This program enables you to put as little as 3% to 5% down using conventional financing (not FHA) and eliminate the monthly mortgage insurance payment by making a one-time more affordable payment.
This provides multiple benefits including a potential increase in buying power by reducing the Debt-to-Income ratio (lower monthly payment), allowing you to negotiate for the seller to make this payment by rolling it into closing costs, and ensuring that the entire payment is tax deductible (confirm with your tax advisor).
Choosing The Right Lender
Choosing the right lender is a combination of selecting the program that’s right for you, getting the best market rates and working with somebody who provides a high level of service. In 2017 I wrote an article with additional tips for selecting and comparing lenders.
If you have any questions about the programs I summarized above, other lending programs like construction and rehab loans, or would like an introduction to one of my preferred lenders please reach out to me at [email protected].
If you’d like a question answered in my weekly column or to set-up an in-person meeting to discuss local real estate, please send an email to [email protected]. To read any of my older posts, visit the blog section of my website at www.EliResidential.com. Call me directly at (703) 539-2529.
Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with Real Living At Home, 2420 Wilson Blvd #101 Arlington, VA 22201, (202) 518-8781.
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Synetic Theater Camps are a wildly fun, highly accessible choice for young people who love moving, playing games, and making memories. Registration is open now for Summer Camps (sessions June 20-August 25) and there are even a few spots left for Spring Break camp, April 3-7.
Located in National Landing, these performance-based camps are designed for students of all ages – no theater or performance experience required.
Led by professional teaching artists, campers learn acting, movement, and technical theater skills through the lens of Physical Theater. Physical Theater incorporates acting, movement, dance, mime, and acrobatics. If you’ve seen a Cirque du Soleil performance, you’ll find many similarities.
Most first-time campers are new to the performing arts, and teaching artists are well-versed in engaging students at all levels. Parents and campers report that one of the best parts of Synetic is the community, with many families returning year after year because they feel a strong sense of belonging.
EDBS Dental Billing Solutions is pleased to announce that it has achieved compliance with the federally mandated standards of the Health Insurance Portability and Accountability Act (HIPAA) through the use of Compliancy Group’s proprietary HIPAA methodology, The Guard® compliance tracking software, and HIPAA Seal of Compliance®.
The HIPAA Seal of Compliance is issued to organizations that have implemented an effective HIPAA compliance program through the use of The Guard, Compliancy Group’s proprietary compliance tracking solution.
Clients and patients are becoming more aware of the requirements of HIPAA compliance and how the regulation protects their personal information. Forward-thinking providers like EDBS Dental Billing Solutions choose the HIPAA Seal of Compliance to differentiate their services.
“Since the nature of our business being exclusively remote, we take HIPAA compliance very seriously. With the help of Compliancy Group, we are able to take steps to fortify our systems to protect PHI information and familiarize each employee about HIPAA and how we can further safeguard PHI data.” said EDBS Dental Billing Solutions founder Goldie De Leon.
WHS Spring Festival
Join us at the WHS Spring Festival on April 22, 2023, from 10am- 3pm at Wakefield High School(main parking lot). Come out to shop, play, and eat!
Shop local vendors, arts & crafts, new and used items, food vendors/trucks, and
District 27 Toastmasters 2023 Virtual Conference
District 27 Toastmasters invites you to its annual conference where you can hear phenomenal speakers, attend professional development and personal growth seminars about leadership, negotiation, communication, teamwork, and mentorship. Learn how to develop your personal story and how to improve