Physician mortgage loans are primarily home loans or mortgage loans offered to medical professionals who need to purchase their own house. Training for any of the medical fields is all-consuming for such a large portion of your life. A significant part of your twenties goes in studying, learning, and training.
By the time you start practicing, it is time for you to have a family and lie down roots. The idea of having a family comes with a lot of responsibilities. It involves large cash expenditures and loans to be compounded onto massive debt already incurred from medical school.
Special loans for physicians
Some banks have developed specialized products for physicians and other medical professionals in line with their needs and financial capabilities. Doctors are generally looked upon as responsible borrowers, given their steady flow of income and future earning potential. That is one reason why there are lesser restrictions imposed on borrowing doctors. A stable history along with current eligibility for employment is a major criteria for these banks to offer loans or to qualify for a regions bank physician loan.
Keep reading for a rundown on how to qualify and how these types of loans work:
- Application for these loans requires your: medical degree, job contract or details about the current employer, good credit history, and a decent debt-to-income ratio.
- They are often offered loans at zero down payment, and there is also scope for 100% financing.
- If you have an employment contract, it may not be necessary for you to be currently employed.
- In many cases, these banks don’t even charge for private mortgage insurance.
Student loans are often not taken into consideration
Physician banks might require opening an account so that timely payments can automatically transfer. In the case of jumbo loans, there are no higher rates of interests. Usually, mortgage companies would charge extra for jumbo loans.
These types of loans can be suitable for majority types of properties. However, in certain case, you might not be able to buy a condo with such loans. You can also use gift money for making a down payment.
One of the major cons of this loan is that the rate of interest is pretty high. All the advantages or special treatments often get offset by such higher rates of interest.
Veterinarian home loan
Veterinarian home loans are one of the many kinds of specialized loans offered only if you are a veterinarian. They are viewed as low-risk borrowers and are offered 100% financing for the entire cost of the property without bearing the cost of lenders mortgage insurance, access interest rates that are significant than the ones so offered to the general public, and credit criteria that is relaxed especially for new graduates.
They are also offered discounts on interest rates that generally depend on the size of the mortgage you can offer if you combine interest rate with an LMI waiver, and if you have associations with listed associations.
Conclusion
Given the credibility of your profession, a good number of banks and other financial agencies have come up with attractive offers for you to have a home of your own and peace of mind.