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Still unsure about physician home loan mortgage programs?
It’s OK! We get it – the financial world of home loan mortgage programs can be a bit overwhelming at first. But don’t worry, it is not as complex as it seems. You don’t need to add a degree in finance to your list of certifications to get the loan you require.
Here are the bare bones of these specialty doctor home loans:
A physician mortgage loan is a specialty home loan created to help those in the medical field have access to home ownership. These loans have special terms and are only available to physicians.
Getting loans with favorable terms can be extremely difficult for those who have just come out of medical school with a large debt load. Normally in a home loan situation, any debt that you hold will be counted against you in the bank’s calculations. However, with a physician home loan mortgage program, your student debt will not be counted against you, which means that your buying power may get boosted, and your payments may be lower as well.
A physician home loan mortgage program can greatly help those who find themselves in that tricky spot between just getting out of school and needing a home.
Residents, Fellows, and New in Practice Physicians may qualify for a physician mortgage loan. The rigorous years of schooling that you conquered in your quest to become a doctor should not hold you back from being able to buy a home. These specialty loans consider your unique situation (something that most other loans will not be able to do). And because of this, they allow you to move forward with getting the housing that you need without the complications that can arise from a traditional home loan.
Banks are happy to offer these specialty loans to physicians because they know that having you as a client is a good thing. The dedication that you showed in your schooling, along with the fact that you have a promising future as a high-income earner, dampens their risk in loaning you money for a home.
Some banks have extended the program to include Dentist, Podiatrist, Optometrist, and Veterinarian degrees. If you are one of these specialties, click on your designation to see your specific guidelines.
There are FIVE unique ways that make physician home loans the most practical choice.
- Low or Zero Down Payment 0-10% is typical
- No Private Mortgage Insurance(PMI) saving you up to 1% annually. That is a $10,000 per year savings on a 1 million dollar home.
- Student loan debt not counted against you. This allows you to qualify for a nicer home.
- Higher loan limits up to 2 million are available typically at the same rate
- Ability to close 90 days prior to new employment beginning. Moving is stressful enough without starting a new job. Why move twice or pay huge premiums for long term housing.
BUT what do the banks get out of this?….
- A future high income earning client
- Some banks require you to have a checking or savings account with them
- Rate and fees on these loans can be slightly higher than loans that require 20% down and years in current employment position