Provider Review: NEO Home Loans

For many doctors, obtaining a mortgage loan can be challenging. This may be especially true for those working as a fellow or resident with an unproven financial history and significant student loan debt. NEO Home Loans offers mortgage loans designed to fit the unique needs of these borrowers. This provides a way for individuals to obtain the funding they need and build financial wealth long term. Here is a look at these loans.

For doctors just getting started, consider learning more about mortgage lending in our article “A Medical Resident’s Guide to Mortgage Rates” as well as our article “A Complete Guide to Physician Mortgages.”


What Is NEO Home Loans?

NEO Home Loans is a mortgage lender that provides residential mortgages for a wide range of borrowers. It is a newer company, founded in 2021. It is a division of Celebrity Home Loans, LLC. Celebrity Home Loans has been in business since 2006 and is licensed in 48 states, and has lent over $21 billion in home loans to prospective home buyers.

NEO Home Loans, based in California, provides home buyers with the tools they need to purchase a home but also believes in providing those borrowers with tools and guidance to help them be successful. The company states that it is a new type of lender in that it works to help its borrowers to become financially well established.

To do this, the organization helps prospective home buyers determine which loan type is best suited for their needs. That may not mean the lowest interest rate. Instead, it may be a method that  creates the lowest overall cost to the borrower while also having the biggest effect on overall wealth.

Related Reading: Beginner’s Guide to Tax Planning


What Kind of Mortgages Does NEO Home Loans Offer?

NEO Home Loans provides home mortgages. This includes conventional mortgages. The company also offers Physician Home Loans. These are mortgage loans specifically designed to meet the individual needs of doctors and other health care professionals.

These loans are specifically designed to meet the unique needs of residents, fellows, practicing physicians, and those working in the industry as self-employed professionals. A wide range of professionals may qualify for these loans. That includes medical doctors, Doctors of Osteopathic Medicine, Doctors of Dental Surgery, Doctors of Dental Medicine, Doctors of Pharmacy, Doctors of Optometry, Doctors of Veterinary, Doctors of Chiropractic, Diploma of Child Health, and potentially other providers.

The loan programs offered are dependent on the individual’s needs. Some of the core components of these loans that may make them attractive for home buyers who are doctors or other professionals include:

  • High loan to value ratio: The company offers mortgage loans that have a high loan to value ratio, with 100% financing up to $1 million and up to 95% financing on loans of up to $2 million. This is significantly higher than most conventional loan lenders, who may require as much as 20% of the sale price of the home in a down payment.
  • Multi-family properties: Another core benefit of these loans is that they allow borrowers to purchase 2-unit properties. That means a home buyer could use this loan to buy a duplex property that allows them to live in one unit and rent out the other, creating an instant stream of revenue while they do so. Many other conventional loans do not allow this for all borrowers.
  • Gift fund availability: With NEO Home Loans, borrowers can use funds gifted from parents, friends, or others to help with the down payment. Some other types of loan funding do not allow this. Here, as long as the funds are a gift and not a loan that must be repaid to the family member, they are available to be used towards the down payment.
  • Early close: For doctors who may be moving, buying a home is difficult, especially when switching employers. With these loans, professionals can apply and qualify for a loan, shop for a house, and close on the loan prior to an employment start date. Nearly all other types of loans with traditional underwriting will not allow this, or it may cost significantly in higher interest rates.
  • No mortgage insurance requirement: Typically, with high loan to value debt ratios, borrowers must purchase mortgage insurance, a fee that is paid each month with a home loan payment if the borrower does not have 20% down. This does not happen with NEO Home Loans. They do not require mortgage insurance even in these situations.
  • Available to visa holders: Another core benefit is that NEO Home Loans will approve borrowers who are in the U.S. on a J-1 Visa, even if they are just arriving. This provides those who are moving into the U.S. to have the ability to purchase a home right away.
  • Minimal student loan debt impact: Student loans often hold back borrowers, especially medical doctors who typically have a significant amount of debt. NEO Home loans works around this to structure the mortgage loan without considering the student loan debt as a hindrance, which may open the door for new opportunities.

Read More: A Physician’s Guide to Student Loan Forgiveness

Instead of offering a simple application for access to government-backed loans, NEO Home Loans works closely with the applicant to determine what the best loan terms are for their situation. They then structure the home loan to best meet the needs of the professional, often opening the door for loans that are more affordable and that build wealth for the borrower.


What Kind of Physician Home Loans Do NEO Home Loans Offer?

NEO Home Loans is available in all states except for New York. They are unlike other lenders that put individuals into specific loans based on offerings such as conventional or FHA loans. NEO Home loans work closely with physicians to create a loan program that fits their specific needs. This may range widely in terms of the loan terms, interest rates, amortization, and features.

The company prides itself on offering that type of flexibility that is specifically tailored to meet the individual needs of physicians.

Moving to another state? Check out our library on State Medical Licensing


What are the benefits of using NEO Home Loans?

The loan terms and conditions offered by NEO Home Loans are not readily available in terms of being listed online. To obtain quotes and a loan offer, individuals must contact the agency and speak to a representative to work through the wide range of loan programs and terms available. Still, there are a number of benefits to choosing these loans over others.

No Down Payment Requirements

For those in residency or working on their fellowship, earnings are not always high enough to save for a significant down payment. This is difficult in the typical mortgage world. FHA loans are typically the easiest step for most home buyer and require 3.5% down to buy a home. For some borrowers, that’s challenging.

Other loan programs, including conventional loans, require as much as 20% down. That could be out of reach for many physicians. However, NEO Home Loans takes aim at this offering up to 100% financing, with no down payment, for up to $1 million in home purchase value. For those seeking a home worth more than that up to $2 million, it offers 95% financing, requiring just a 5% down payment. This is a rather unique opportunity for many home buyers.

Fixed and Adjustable Loans

NEO Home Loans offers fixed rate mortgages and adjustable rate mortgages. These loans offer enough flexibility to meet the needs of most consumers. Fixed rate loans offer the benefit of a fixed payment that remains the same throughout the length of the loan. If you plan to remain in your home for a long time with a consistent payment, these loans work well.

For some doctors, an adjustable rate loan may be beneficial. This is especially true for those who may be in their home for a short period of time before moving. These loans often have a lower initial interest rate. Over time, that rate can adjust higher as market conditions adjust. For a short period, though, they can be far more affordable for some borrowers.

Ready to buy a home? Read this: How to Navigate Buying a Home in the Current Market

Credit Score Flexibility

Depending on the individual’s other qualifications, NEO Home Loans offers more flexibility in credit scores compared to other lenders. It may help medical professionals who have a credit score as low as 640 to obtain a mortgage loan. It is important to note that this depends on income and other factors as well. Some loan features and terms may not be available to those who have a credit score of under 700.

High Value Loans

Borrowers may be able to qualify for high-value loans, up to $2 million in some cases. This is typically higher than jumbo mortgage loans, depending on where the individual is located. For those looking to buy into one of the more exclusive markets, that may be possible with these loans.

Fast Close Opportunities

NEO Home Loans also offers some of the best closing timelines. They recognize the need for fast closes in today’s highly competitive market. The organization offers opportunities to close loans in as little as 17 days. The speed of the close depends on multiple factors, including the loan program used and the down payment made.

Loans Available to Most Medical Professionals

The company offers loans to most physicians and medical professionals. Those in the healthcare community can reach out to the company to find out if they qualify.


Why NEO Home Loans Says Traditional Loans Fail for Physicians

There are many reasons to recommend NEO Home Loans for physicians. The first reason is because it is designed specifically to accommodate the unique needs of doctors and other professionals. For example, after the mortgage banking industry’s failures in 2008, physicians began to experience a tightening on lending. This made it difficult for these professionals to purchase a home. They state that they had a higher rate of underwriter decline than any other professional client.

Physicians face a number of complications when obtaining a loan to buy a home. This includes having difficulty providing their financial worth due to seemingly endless amounts of student loan debt. Student loans are typically necessary steps for many doctors in school, including IBR and deferment. This often impact how these well-qualified borrowers obtain loans.

Student loan debt? Read this: How Moving Can Help Physicians Pay Off Student Loans

Instead of offering a blanket loan program, the company set out to offer a more unique offering. This offering is designed specifically to limit the complications in this area. It also provides individuals with more flexibility in borrowing even while they are younger and may have an unproven employment history.


Is NEO Home Loans a Good Choice for Physicians?

There are a variety of reasons why borrowers should consider NEO Home Loans for their specific borrowing needs. The lender has programs designed specifically for most medical doctors, including residents and fellows. That opens the door to more funding options that may not be available from other borrowers.

NEO Home Loans is also able to create loan opportunities that overcome many limitations that doctor’s loans typically have. This includes high student loan debt as well as instances in which they may not have a large down payment. This type of specialized lender does not just offer low interest rates but also helps borrowers to create financial wealth.

Learn more: Why Doctors Should Consider Real Estate Investing


How Can We Help You?

If you are thinking about purchasing real estate as a physician, please reach out to our team. Read our article, “Can Physicians Have Cool Cars and Houses and Still Retire Early,” to get a bit more insight into what we can do for you.

Also, reach out to us to help you with the entire process from residency to retirement. We love to help physicians to make more money with our contract review services, protect your income with disability insurance, protect your loved one with life insurance, and help you save for retirement with our financial planning services. Contact us now to learn more about our real estate support services or any of our other services.

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