Why You Should Take Out a Medical Professional Loan Instead of a Conventional or FHA Mortgage
Physicians face several unique issues when purchasing a house and applying for a conventional or FHA mortgage loan. Recently, the best doctor mortgage loans have been restricted to M.D. and DMDs, excluding many other medical professionals with similar experiences and challenges.
Medical professionals can now take advantage of alternatives beyond conventional and FHA loans to address these issues. This allows them to borrow at lower overall costs.
Read on to find out more about why a medical professional loan might be right for you:
- Conventional and FHA loans can require private mortgage insurance.
Medical professionals often have more student loan debt and expenses. Because many medical professionals haven’t been able to save the traditional 20% down payment required for conventional financing, most professionals must rely on private mortgage insurance (PMI).
PMI is expensive insurance that protects the lender but is paid by the borrower. With FHA financing, these monthly insurance premiums usually continue for more than ten years or for the life of the loan. A medical professional loan helps you avoid these monthly premiums even if you put down less than 20%.
- A medical professional loan can help you close before you begin a new job.
There are numerous clients who need to close on a new home before starting a new job. Having the ability to close before your job starts is important to many relocating families.
With medical professional loans, you can close up to 90 days before your new job begins, granting you flexibility in when to purchase or close on the property. In addition, you can delay the first month’s payment by up to 60 days (depending on when in the month your closing is scheduled).
Medical professional loans can close in as quickly as 14 days in many instances. This enables you to write a very compelling offer with short deadlines that the seller will find very appealing.
- For conventional and FHA loans, you must qualify based on 1% of your outstanding loan balances as a monthly payment.
Because of their high student loan debt, some clients are unable to obtain conventional or FHA loans. We regularly speak with clients who are denied conventional or FHA financing elsewhere and are subsequently approved with our medical professional loan programs without any trouble.
- A two-year history of self-employment or 1099 income is required for conventional and FHA loans.
Our medical professional loan programs are more likely to accept new self-employed or 1099 income recipients. We may in some cases accept new 1099 recipients who have no history based on their employment agreements or offer letters. We want to understand the terms of your income if you are newly self-employed or 1099, and see if we can help.
- A medical professional home loan process ought to be less stressful than an FHA or conventional mortgage process.
Our loan officers, processors, underwriters, and closers work with medical professionals every day. Having years of experience in this industry, we know the common challenges and obstacles faced by medical professionals. As a result, we have put together systems and educated our workers on how to ensure your mortgage and home purchase experience is as stress-free as possible.
It is worth checking a lender’s reputation online before you make a mortgage decision. You may check their Google or Facebook reviews to do so. Before working with any bank, you should ensure they have experience working with medical professionals or the professions they serve.
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We are not a lending company. We help you find the best physician loan on the market.
You can find doctor loans through an online tool like Dr. HomeFinance that compares multiple lenders for you. Simply select which state you are looking at living in and get the best physician mortgage you can.
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