Everything You Should Know About a Physician Mortgage

In recent years, banks have been targeting physicians for a type of loan not available to the public called a physician mortgage loan. Physicians have unique challenges with borrowing because they have high debt-to-income ratios. Due to student loan debt and low income right out of school.

By reading the definitive guide we’ve pulled together here, you will learn: Who qualifies for a physician mortgage, the advantages, and disadvantages of physician loans, what mortgage amount you will qualify for, common mistakes with doctor mortgage loans, and how not to make them.

We designed this guide to provide insights from years of experience working with attendings and residents to make your decisions much easier. So, spend time with this guide (and bookmark it) to better understand if a physician mortgage loan is right for you when it comes time to purchase your home.

Consider this a journey through the entire process of understanding and applying for a physician loan.

Physician Mortgage: Who Qualifies?

People who qualify for physician mortgage loans are doctors, resident physicians, and doctors with employment letters. A physician mortgage loan is best for those who carry medical school debt, which is often more than $200,000.

Dentists and other doctors as veterinarians also qualify. *see our lenders in your state* 

Advantages and Disadvantages

A physician mortgage loan benefit includes no money down and no private mortgage insurance. The best physician mortgage loans don’t weigh all your student loan debt as part of your physician mortgage loan application. 

There are disadvantages of physician mortgages, you cannot use this to buy an investment property.  Although, if you buy while in residency and decide to keep the home.  You are allowed to keep the physician mortgage on it. There is no limit to the amount of physician mortgages you can have. Although some banks might limit you to two with their institution. There are also limits on second properties for physician mortgages. 

Loan Amounts

This can vary between banks; many have moved to 100% up to 1M.  Over 1M you will need to put a down payment.  This can be between 5-15% down.  Amounts for physician mortgage loans are significantly higher than a traditional mortgage. You’ll make a higher income as a physician, so banks know you can pay more.

Loan amounts could be as high as $3,000,000+.

Common Mistakes

There are common mistakes you can make with physician mortgage loans. 

Many physicians are not buying their “forever” home. So choosing the right terms is very important, Getting an adjustable-rate mortgage can be a mistake if you are planning to stay in the home more than 10 or 15 years.  But, if you are a new resident , they can be a great option. When you are not buying your “forever home” don’t focus on a “forever” mortgage. The rate at the beginning of the loan may be great, you’ll just want to make sure you have a strategy that matches your future plans.

Choosing a Physician Mortgage

Save this guide to choosing a physician mortgage. This article tells you who qualifies and the advantages and disadvantages of a physician mortgage. You also learn about loan amounts and common mistakes you can make.

Now that you have gotten yourself through medical school, it’s time to enjoy the reward! Buying that first home is everyone’s dream!

Contact us today to learn more about a physician mortgage. We can walk you through the process to determine if these loans are suitable for you and your situation.