ASB PORTFOLIO MEDICAL & DENTAL PROFESSIONALS PROGRAM1
- As low as 3% down payment for loans up to $750,000 with mortgage insurance2
- 10% down payment with a simultaneous first mortgage and home equity line of credit (HELOC) up to $2 million3
- Self-employed doctors eligible with a minimum of one-year history of self-employment
- Income eligibility for medical residents transitioning to salaried physicians
Are You An Eligible Borrower?
Medical Resident, Medical Fellow (with signed employment contract)
Medical Doctor or Surgeon (MD, DO, DPM)
Doctor of Dental Science, Dental Medicine and Dental Surgery (DDS, DMD)
Doctor of Optometry (OD) , Ophthalmology (MD)
Pharmacist with a PharmD (RPh)
Doctor of Veterinary Medicine (DVM)
Doctors & Dentists Purchase Promo:
- Receive one-half (0.50) point off your loan origination points with automatic monthly mortgage payments from an ASB personal checking account.4
- American Savings Bank (ASB) Portfolio Medical and Dental Professionals Program (program) is only for the purchase/refinance of owner occupant, 1-4 unit single family dwelling (SFD), warrantable condominium, and non-warrantable condominium excluding condotels and coops in the State of Hawaii. Program is for eligible medical professionals who are employed or medical residents who will be employed as a physician within 60 days of mortgage loan closing (a fully executed employment contract is required and the borrower(s) (borrower) must have verified assets/reserves to cover the monthly housing payment [principal, interest, taxes, insurance and applicable association dues] until residency is completed). Self-employed medical professionals are eligible with 1 year of business and personal tax returns reflecting at least 1 year of self-employed income. If self-employed less than 2 years, ASB requires 1) evidence that the net self-employed income used to qualify from the medical self-employed business is comparable to non self-employed salary in the same medical field and market in which the medical professional practices; 2) documentation to support educational credentials and medical license and/or 3) W-2 (if the borrower was employed in the medical profession, using his/her medical license, in the prior tax year).
- Example: Based on a purchase price of $773,200, the loan amount would be $750,000 with a 3% down payment of $23,200 for a 30-year fixed rate mortgage at 3.750% / 4.795% Annual Percentage Rate (APR) and 0.125 point, the monthly principal and interest payment including the monthly Private Mortgage Insurance (PMI) of $438.00 would be $3,911.00 for 360 months. Interest rate used in the example is effective 05/18/2021 and assumes borrower with a minimum credit score of 740.
Residential first mortgages greater than 80% loan-to-value (LTV) require PMI, which is paid by the borrower and protects the lender from borrower default on loan payments. PMI cancellation is typically permitted: 1) borrower-requested cancellation, and 2) lender-required termination under the Homeowners Protection Act of 1998. For a borrower-requested cancellation, the borrower must provide a written request for cancellation to the lender on the date that the mortgage loan balance is first scheduled to reach 80% of the original value, based solely on the initial amortization schedule, regardless of the outstanding balance of the loan, or on the date that the mortgage loan balance actually reaches 80% of the original value. Or, borrower may request cancellation based on LTV and current property value (borrower pays for lender selected appraiser). The request can only be cancelled if the borrower has a good payment history and the borrower satisfies any lender requirements that the property value has not declined and that no subordinate liens exist. For a lender-required termination, the lender automatically cancels the coverage on the date that the mortgage balance is scheduled to reach 78% of original value, based solely on the initial amortization schedule, regardless of the outstanding balance of the loan and if the borrower is current on the mortgage payments. Program is subject to change or cancellation at any time without notice. Certain restrictions and conditions apply for “high risk” loans. Eligibility is subject to meeting income qualification and credit score requirements.
- The maximum combined loan amount is $2,000,000 with a maximum combined loan-to-value (CLTV) of 90% with no PMI. Secondary financing must be an ASB Equity Express (EEX) Home Equity Line of Credit (HELOC). This consists of 1) a first mortgage loan amount up to $1,750,000 (the maximum LTV is 80% for loan amounts up to $1,250,000; 75% for loan amounts greater than $1,250,000 and not to exceed $1,750,000), and 2) a simultaneous ASB EEX HELOC second mortgage up to $500,000.
Example: Based on a purchase price of $1,000,000 with a 10% down payment ($100,000), the first mortgage amount is $800,000 (80% LTV) and the HELOC amount is $100,000 (CLTV 90%). The monthly principal and interest payment for the first mortgage is $3,537.00 as of 05/18/2021 with an interest rate of 3.375% and 0.375 point (3.440% APR) assuming a borrower minimum credit score of 740. The actual monthly mortgage payment is higher when you factor in the monthly impound amount for property tax, hazard insurance and other applicable impounds. Assuming the $100,000 HELOC draw is immediately converted to a 20-year Fixed Rate Equity Loan Option (FRELO) at the promotional rate of 3.25% APR, there will be 240 monthly principal and interest payments of $567.00 for an owner-occupant borrower with a minimum credit score of 740. Current non-promotional 20-year FRELO rate as of 06/01/2021 is 6.50% APR. Promotional or discounted FRELO rates require automatic monthly FRELO payments from an ASB personal checking account. If you don’t have an ASB personal checking account, a Kalo Checking account must be opened. Please see the Personal Deposit Account Terms and Conditions for other terms, conditions and fees for Kalo Checking accounts. Cancellation of automatic payments anytime during the life of the FRELO may increase your rate to the current non-discounted rate.
- The mortgage discount offer (offer) is applicable for home purchase transactions financed through ASB residential mortgage programs. Promotion is not applicable for brokered out loans or Veterans Affairs Loans. Offer good only with a completed loan application submitted to ASB and for a loan locked through 08/31/2021 and closed/funded by ASB by 10/31/2021. Offer is subject to automatic monthly mortgage payments from a new or existing ASB personal checking account for this offer of one-half (0.50) point off loan origination points. The ASB personal checking account number with the intent to establish automatic payments for the mortgage must be provided prior to final approval of the loan by ASB. The establishment of automatic payments must be signed at mortgage closing. If the borrower opts out of automatic payments or the ASB personal checking account is not established at loan closing, this promotion will not apply. See the Personal Deposit Account Terms and Conditions for other terms, conditions and fees for Kalo Checking accounts. This offer cannot be combined with any other promotional discounts, long-term rate lock specials, or new project financing rates unless otherwise specified, and is limited to one promotion per loan. This offer is subject to change or discontinuation without notice. The financed residential property must be owner-occupied. Applicant(s) is/are subject to loan qualification, underwriting guidelines, and credit policy of ASB. Certain terms and restrictions apply. For more information, please contact an ASB Residential Loan Officer.