Daily Archives: May 6, 2018

Banks are working to woo new doctors into home mortgages

When Dr. William Ngo was shopping for his first home two years ago, he ran into a problem: He got rejected for a mortgage because he had about $250,000 in student debt and little savings.

So the surgeon applied for a loan specifically designed for doctors that came with a higher interest rate but no money down, and just a future work contract as proof of income.

Mortgages tailored to doctors have grown more popular in the last few years, according to the lenders who offer them. Bank of America said it has seen the dollar volume of physician mortgages it issued between 2008 and 2017 increase ninefold because of greater awareness from consumers.

Smaller banks also report increases. Stillwater, Oklahoma-based Bank SNB, owned by Simmons First National, issued $50 million in physician home loans last year and is on track to double that amount this year, said Drew Daniels, a mortgage sales manager who launched the loan program.

Read on.

America’s Housing Crisis Is Spreading To Smaller Cities

“Have you considered the racket and the lights and the crowds and the traffic, and everything that’s going to happen to those of us who live here?”

It is a familiar sight in America: the public meeting, the angry residents, the housing developer trying to explain himself over the boos.

Except this is not San Francisco or L.A. or Boston. It is Boise, Idaho.

And it is a preview of the next chapter in the housing crisis. Rising rents, displacement and, yes, NIMBYism are spreading from America’s biggest cities to those in its middle tier. Last year, according to an Apartment List survey, the fastest-rising rents in the country were in Orlando, Florida; Reno, Nevada; and Sacramento, California. Another survey, by RentCafe, found exactly one city with a population greater than 500,000 ― Las Vegas ― in the top 25.

Small cities are starting to face the same challenges as larger ones. Renting a two-bedroom apartment in Jacksonville, Florida, requires earning at least $18.63 per hour ― $10.53 more than the state minimum wage. In Tacoma, Washington (pop. 211,000), a property management company is evicting low-income residents so it can flip their building into luxury units. Boise, where downtown condos are going for $400,000, was the seventh most unequal city in America in 2016, a jump from 79th place just five years earlier.

Read on.