{"id":6149,"date":"2022-12-11T19:44:56","date_gmt":"2022-12-12T00:44:56","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/?p=6149"},"modified":"2023-01-28T08:27:27","modified_gmt":"2023-01-28T13:27:27","slug":"doctor-loans","status":"publish","type":"post","link":"https:\/\/dreamhomefinancing.com\/doctor-loans\/","title":{"rendered":"Doctor Loans and Physician Loan Options"},"content":{"rendered":"

Doctor Loans – Physician Loan Options<\/strong><\/span><\/h2>\n

\"Doctor<\/span><\/p>\n

Doctors, physicians and other healthcare professionals spend many years training for their profession and often accumulate a lot of student debt. This dynamic often makes it difficult to qualify for a conventional mortgage.<\/span><\/p>\n

There are doctor loan mortgage programs which make it easier for doctors to qualify for a mortgage with no down payment and with competitive interest rates.<\/span><\/p>\n

*Doctor loan tip<\/em> – You can get approved for a Doctor loan up to 90 days before the start of your new job.<\/strong><\/span><\/p>\n

What is a Doctor or Physician Loan?<\/strong><\/span><\/h2>\n

Doctor loans or physician loans are for healthcare professionals and have very flexible requirements and guidelines. The down payment for a physician loan is either very low or has no down payment at all.<\/span><\/p>\n

This program is best for the physician who has a W2 job working for a hospital or some other healthcare facility. Doctors who are self employed and are operating a new practice may want to consider a bank statement loan<\/strong><\/span><\/a>.<\/span><\/p>\n

Doctor Loan Mortgage Program Features<\/strong><\/span><\/h2>\n

The special doctor loan mortgage program does not have a down payment requirement for loans up to $1 million. Higher loan amounts are available but with a small down payment.<\/span><\/p>\n

PMI<\/strong> <\/span>– Doctor loans also do not have PMI (private mortgage insurance) which is a huge monthly savings versus what you would have with a conventional loan.<\/span><\/p>\n

Student Loans<\/strong><\/span> – If you have student loans, the monthly payments are not included in the DTI calculation of those payments are deferred for 12 months or longer. This is another huge advantage versus other loan programs and will help doctors and physicians to qualify for a larger loan amount.<\/span><\/p>\n

Gift Funds<\/strong><\/span> – If you are looking for a large loan amount and a small down payment required, gift funds from family members can be used. Gift funds can also be used for closing costs if needed.<\/span><\/p>\n

Seller Contributions<\/strong><\/span> – Sellers are permitted to contribute up to 6% of the loan amount towards closing costs or prepaid taxes and insurance. If you are shopping for a home during a buyer\u2019s market, this can be a great advantage.<\/span><\/p>\n

Loan Terms<\/strong><\/span> \u2013 Doctor loans are available in a 30 year fixed and some lenders also offer adjustable rate mortgage options<\/span><\/a><\/strong>.<\/span><\/p>\n\n\n\n\n
Down Payment<\/strong><\/span><\/td>\n0%<\/span><\/strong><\/td>\n5%<\/span><\/strong><\/td>\n10%<\/span><\/strong><\/td>\n<\/tr>\n
Loan Amount<\/strong><\/span><\/td>\n$100k – $1 Million<\/span><\/strong><\/td>\n$1 Million – $1.5 Million<\/span><\/strong><\/td>\n$1.5 Million – $2 Million<\/span><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Other Doctor Loan Programs<\/strong><\/span><\/h3>\n

Doctors may also apply for some of the more common mortgage programs if they are able to qualify. These are the most common if for some reason you are unable to qualify for, or prefer not to use the doctor loan.<\/span><\/p>\n

Conventional Loans for Doctors<\/strong> \u2013 With a conventional loan, your minimum down payment will be 5%, but there will be PMI. You also will be capped on the DTI at about 43% and there are also loan limits. Read [Conventional loans<\/a><\/span><\/strong>]<\/span><\/p>\n

FHA Loans for Doctors<\/strong> \u2013 FHA loans come with a 3.5% down payment and allow for credit scores as low as 500. The DTI ceiling is much higher at 56.9%. There is also the 203k rehab loan which will allow you to buy a home and also borrow the funds needed to update or rehabilitate the home. Read [FHA loans<\/span><\/strong><\/a>]<\/span><\/p>\n

VA Loans for Doctors<\/strong> \u2013 If you are a doctor or physician and spent time in the military, a VA loan may be better for you. There is no down payment, no credit score requirement, and no maximum loan amount.<\/span><\/p>\n