Physician home loan program
Make the beautiful Monterey Peninsula your home. Take advantage of a home loan program for physicians, an investment in Montage Health’s future and yours.
How the program works
Recruiting and retaining doctors like you is a priority of the Montage Health Foundation and Monterey County community. Thanks to generous donor support, the foundation offers loans to current medical staff members not covered under a Montage Health recruitment agreement.
The loans are second mortgages. This means you must still secure a primary loan from a lender. You can then cover some of the down payment by using the Montage Health Foundation “second” loan for up to 15% (no more than $300,000) of the property’s purchase price.
Judith, a general surgeon on staff at Community Hospital of the Monterey Peninsula, has her eye on a $1,800,000 house. She will likely need to come up with 20%, or $360,000, as a down payment. If she qualifies for the Montage Health “second” loan, she will only need to come up with 5%, or $90,000, because the Montage Health loan provides the other 15% (up to $300,000). So, after putting up her own $90,000 and borrowing $270,000 under the Montage program, Judith’s primary loan is now $1,440,000 and her second loan is $270,000.
Judith will secure her best interest rate from her primary lender, and the Montage Health loan will be issued at the Wall Street Journal Prime Rate plus 1.25%.
Judith will make monthly payments on both loans. On the Montage Health loan, Judith pays only interest for the first five years. With today’s rates, that’s about $1,013 a month. After the first five years, and for the next 10, that increases to $1,368 a month as the payment includes principal. At the end of 15 years, Judith will have a “balloon payment” of the balance of the Montage Health loan, about $216,000. Typically, someone who has a balloon payment refinances their mortgage at that point rather than paying off the balance.
At any time during the 15 years, Judith can pay more than the minimum payment with no penalty.
To qualify for this program, you must be a current Montage Health medical staff member:
- On staff at Community Hospital for a minimum of one year
- In good standing
You must also:
- Have a full-time local practice without a restrictive non-compete covenant with a contracted group
- Meet financial criteria to qualify for the loan
- Not use the loan to purchase a second home
- Not have already received a physician recruitment package
Loans are awarded on a first-come, first-served basis. Montage Health reserves the right to limit issued loans if demand exceeds allocated resources.