Because of the unique difficulties that physicians have when applying for loans because of their high debt-to-income ratios—thanks to student loans—banks developed the physician mortgage loan, also known as the doctor mortgage loan. Finding a conventional mortgage that suits their needs is a challenge for many doctors. This is particularly true for newly licensed physicians, who might have minimal savings, a lower residency or fellowship pay, and enormous student loan debt. As you begin your career, you might also have to deal with a lower-than-average credit score, depending on how much debt you’ve taken on and whether you’ve been consistent about making payments. Higher mortgage interest rates and lifetime payments may result from this.
Luckily, there’s an alternative to a traditional, conventional mortgage. A special kind of home loan designed exclusively for medical professionals is the physician mortgage loan. This mortgage can assist new physicians in locking in low-interest rates, avoiding a large down payment (which can be as low as 200%), and lowering the total amount they must pay back over the course of their loan.
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What Is A Physician Loan?
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How Do Physician Loans Work?
View refinance options that have been recommended by experts and adjust them to suit your budget.
Physician Loan Property Qualifications
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Sidney Richardson is a professional writer specializing in real estate, homeownership, and personal finance content for Rocket Companies in Detroit, Michigan. She graduated from Oakland University with a bachelor’s degree in journalism and a minor in advertising.
FAQ
What is a physician’s loan?
A physician loan, also known as a “doctor loan,” is a type of mortgage intended exclusively for those in the medical field that often doesn’t need a down payment. In the case of other loan types, lenders frequently require borrowers to pay private mortgage insurance (PMI) if their down payment is less than 2020 percent.
What credit score do you need for a physician loan?
Physicians typically need to have good credit. Generally speaking, a credit score of 720 or higher is considered good. You might still be able to qualify even if your credit score is lower, but you might need to make a bigger down payment.
Can you refinance a physician mortgage?
Refinancing physician loans is advised by experts when the break-even point is reached in three to five years. Therefore, refinancing might not be in your best interest if you don’t intend to stay in your current home long enough to reach the break-even point.
Is there such a thing as a family opportunity mortgage?
Is there a Family Opportunity Mortgage? The Fannie Mae Family Opportunity Mortgage program aims to give borrowers looking to purchase a home for their aging parents a more accessible option.
Read More :
https://www.rocketmortgage.com/learn/physician-loans
The 7 Most Important Things to Know About Physician Mortgage Loans