Medical professionals are passionate about their careers, but the amount of debt they accumulate discourages some from pursuing their real estate goals. They are afraid that they won’t qualify for a home loan or that they will struggle to make mortgage payments. It puts a definite wrench in the plans of this otherwise-driven group of individuals.
Many medical professionals don’t realize t. is a home loan option tailored for them. It’s called a Physician Loan, and it helps people with a career in medicine achieve homeownership earlier, giving them more time to build wealth.
Physician Loans: Not Just for Doctors!
You don’t need to be a doctor to qualify for a Physician Loan! Here is a non-exhaustive list of medical professionals that might be eligible:
- Medical doctors
- Osteopathic physicians
- Medical residents or fellows
Physician Loan Perks
Why would someone seek out a Physician Loan instead of another type of mortgage? Here are a few of the features that make Physician Loans stand out for hard-working medical professionals:
- Applicants might be eligible for 100% financing of their home purchase.
- If 100% financing isn’t available, Physician Loans usually offer down payments as low as 3%.
- Student debt isn’t factored into DTI as long as the debt will be in forbearance or deferment for at least 12 months after application.
- Physician Loans don’t have PMI, saving applicants thousands over the life of the loan.
Do All Medical Professionals Qualify for a Physician Loan?
If you work in an eligible medical field, you have already met the first eligibility requirement for a Physician Loan. Depending on your lender, . are a few additional criteria that might apply:
- Applicants usually need a credit score of at least 680.
- If student debt prevents you from attaining a conventional or government-backed loan, you might be eligible for a Physician Loan.
- Borrowers typically need to earn more than 50% of the household income.
- Borrowers must be currently employed or scheduled to start a new job within 60 days.
- Many Physician Loans have cash reserve requirements, and a certain percentage will probably need to be liquid funds.
- Physician Loans usually apply to a single-family home or condo purchase intended as the borrower’s primary residence.
- If you’ve started an independent medical practice, you might still be eligible if you have at least one year of self-employed tax returns under your belt.
Contact Us Today!
Are you a medical professional who wants to plant roots by owning a home? Are you hesitant to take on a mortgage payment with looming student debt? Not all lenders offer Physician Loans, but we have access to ones that do! Contact MortgageDepot today to see if a Physician Loan is right for you.
Connect with one of our loan consultants today to learn more!