For a new physician excited about the possibility of buying a home but carrying the weight of heavy student debt, a physician mortgage can be a great springboard for entering the housing market.
The physician loan (also known as a doctor loan) is designed to help a unique population that often has a high amount of student loan debt and minimal savings, as well as a new job contract that is required by lenders.
These loans are available for doctors, dentists, podiatrists, ophthalmologists and veterinarians.
The main advantages of doctor loans are access to financing with little to no money down and no required private mortgage insurance.
For new physicians, doctor loans offer a fast path to home ownership that would not be available otherwise. Last year, 84 percent of graduates from medical school reported having student loan debt; the median amount was $190,000 (according to the American Association of Medical Colleges).
Here’s a of the program highlights.
- 15-year fixed
- No Mortgage Insurance
- Loan amount up to $650,000
- Minimum Credit Score: 700
- Not available for Construction Loans
- Not available for investment properties, second home or manufactured housing
- Maximum 50 percent debt-to-income ratios
The perks of doctor loans are appealing for medical professionals who are ready to settle down after the grueling years in medical school and residency.
Physician loans are not a on size fits all option. It is important to sit down with a trusted mortgage professional and consider your individual situation to decide whether or not one is right for you.
For more information about doctor loans, visit www.michmortgage.com or contact one of loan officers. We’re here to help.