NEO Physician Loans Review: What You Need to Know

A physician mortgage helps doctors, dentists and other medical professionals with large student loans secure financing with little or no down payment. NEO Home Loans offers loan limits in the $1 million to $2 million range with reduced or no private mortgage insurance (PMI) requirement.

But there are many physician mortgage lenders and home financing options to consider. Keep reading to learn how you might benefit from a NEO Home Loans physician mortgage.

NEO Home Loans physician mortgage program details

The NEO Home Loans physician mortgage program provides home financing for residents, fellows, practicing physicians, and self-employed or 1099 physicians.

NEO Home Loans physician mortgage loan: pros and cons

Physician mortgage loans are a great way to buy a home with no money down while benefiting from other exclusive perks. For example, most physician loan programs have no private mortgage insurance (PMI) requirement and treat student loan debt more favorably during the underwriting process.

But each physician mortgage lender has its own loan amount limits, property eligibility and other requirements. Therefore, you’ll want to compare the pros and cons of physician home loans to find the best fit.

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Pros of working with NEO Home Loans

Up to 100% home financing for primary residences

NEO Home Loans provides financing for primary residences with the following down payment options:

• 0% down for up to $1 million
• 5% down for up to $1.25 million
• 10% down for up to $2 million

Alternative financing opportunities are available to borrowers for second home and real estate investment properties.

Multi-unit properties are eligible

If you want to househack your mortgage, you might be able to use a NEO Home Loans physician mortgage to buy a duplex, triplex or four-unit property. However, multi-unit properties are capped at 90% financing.

Special student loan treatment

Physicians can qualify for a home loan with student loans that are in deferment or on an income-based repayment (IBR) plan.

Close up to three months before starting your residency

Like many physician mortgage loans, NEO Home Loans allows you to close on a new home up to 90 days before your start date. You’ll need an acceptable employment contract to be eligible.

Cash-out refinance available

If you want to tap into your home’s equity, NEO Home Loans offers cash-out refinances with a 95% loan-to-value (LTV) ratio for up to $1 million.

Cons of a NEO Home Loans physician loan

Excludes physicians in New York and New Mexico

Physicians nationwide can take advantage of the doctor mortgage with NEO Homes Loans. However, those living in New York and New Mexico will need to look for other physician home loan options.

0% down payment options are available for select degree designations

Doctors, dentists, podiatrists and veterinarians are eligible for the NEO Home Loans physician mortgage program with up to 100% financing. However, other medical professionals, such as physician assistants, optometrists and physical therapists, might qualify for low down payment options.

No fixed interest rate option for physician mortgage

NEO Homes Loans only offers a 30-year adjustable-rate mortgage (ARM) as part of its physician program. So, if you prefer a fixed-rate mortgage, you’ll want to explore other options.

Limited options for nonimmigrants

For nonimmigrants, the NEO Home Loans physician mortgage is only available to J-1 visa holders.

How to apply for a NEO Home Loans physician mortgage

Here are your next steps if you want to move forward with a NEO Home Loans physician loan.

Step 1: Contact a mortgage loan officer with NEO Home Loans

To get started, reach out to NEO Home Loans to discuss financing opportunities based on your degree and financial situation. You’ll need to provide basic personal, financial and professional information.

Step 2: Track down documentation

NEO Home Loans will provide you with a list of documents necessary to proceed with your application. Generally, you should be prepared to submit the following:

• Personal identification. Driver’s license or other ID.
• Proof of income. Pay stubs, tax returns and recent bank statements.
• Professional documentation. Degree, medical license and employment contract.

You’ll also provide the purchase agreement as you move through the underwriting process. Be sure to promptly respond to requests for additional documents to keep the home buying process on track.

Step 3: Review the contract and accept the loan

Read through the terms and disclosures if you’re approved for a NEO Home Loans physician mortgage. This is your time to ask questions or get information corrected, if needed. Once satisfied, sign the loan documents and accept the loan.

Is a physician mortgage with NEO Home Loans right for you?

NEO Home Loans works with physicians across the country (excluding NY and NM) to close on their dream homes with little to no money down. Your student debt won’t act as a hindrance unlike with conventional loans. Plus, you can tap into high loan limits without the interest rate spikes that come with a jumbo home loan.

That said, it’s best to compare physician mortgage lenders to find the lowest mortgage rates and top benefits. For a personal home purchase or refinance quote, fill out the form below.