Finding a mortgage loan provider for physicians is different to that of other lenders. If you are a physician, you have an additional choice of mortgage type to choose from. For a full list of physician mortgage loan providers, LeverageRX offer an in-depth break down. It will allow you to compare acceptance requirements, the size of any down payment required, and also the special terms and conditions on offer that make these kinds of mortgages so favourable to physicians starting out, or who have qualified more recently.
Many physician mortgage loan providers will extend loans from doctors to other healthcare professionals, such as dentists, orthodontists, podiatrists, and veterinarians, so it is worth checking how providers vary in their acceptance of a particular branch of medicine. One of the advantages of physician mortgage loans is that you can present the company with an offer letter as evidence of your future income, even when you have not started your position as a full-time practising physician. It is worth checking if your provider allows this, as this will mean that you can start the house buying process sooner and before starting your job. This kind of relaxed income documentation is something which is unique to physician mortgage loans. It will give you the time to sort everything out in advance, should you find a house quickly and with no chain of buyers. A credit score of 700 or higher should secure this type of loan.
In addition to the above, you will want to consider how your initially chosen physician mortgage provider deals with student debt. Normally, with these types of loans, it is treated favourably, but it is always best to check how it affects your mortgage. Generally, you will find it easier to qualify for a mortgage than your peers in different occupations. Providers begun offering this type of mortgage to medical and osteopathic doctors, but it has since spread to other types of doctors, albeit ones only in healthcare. Its benefits have been restricted to a certain group.
Down payments will vary depending on your mortgage provider. With physician mortgage loans there can be low down payments required but many companies will offer 100% financing and fixed rates. So, if you prefer no down payment whatsoever, it is a case of finding a lender that will agree to this. If you are able to put down a payment of, for instance, 5 to 10 percent, this will with some providers be a way of avoiding an adjustable-rate mortgage, which may not be suited to your financial plans. If you wish to elect for a small down payment, you may be interested in an article on 5 Creative Ways To Save For A Down Payment On A Home.
It is worth looking into the different mortgage rates available for mortgage physician loans to establish which are most competitive. As a physician, you have a strong case for achieving the best rate because you have an enormous earning potential compared with other professions. Physicians typically have a much lower default rate on loans than other lenders do.
In general, physician mortgage loans are considered a good idea if you have been in the medical profession for 15 years or less. You can then take advantage of interest rates that are historically low and higher loan-to-values with there being no PMI options. This allows physicians to keep their liquid reserves for other investment opportunities that may arise, setting them up for future financial security, whilst allowing them to concentrate on furthering their career.