Every year, 16,000 people finish medical school as doctors and about the same number of people will also graduate from residency. Just out of school and residency, these doctors have little money, but a massive amount of debt. They are a great day of earnings potential in the future, but right out of school, money is hard to come by. Unfortunately for many of these doctors in the past, high levels of debt have prevented them from being able to purchase a home. Now, there is a solution: Doctor Mortgage Loans.
Newly graduated doctors lack the funds for a down payment, they have no proven earnings, and they have too much debt to get approved for a traditional mortgage loan. Doctors often have to move for residency or a new job, so they may need to buy a home before they have even started a new job.
Bank of America realized that there was a need for doctors to get some kind of home loan that allowed for them to purchase a home without meeting all the stringent guidelines that others must meet before securing a home loan. Now there are many different lenders for doctor’s mortgage loans. Doctor mortgage loans often have slightly higher interest rates and fees, but they allow doctors to purchase a home sooner than they would be able to otherwise.
Advantages of a Doctor’s Loan
A few of the key features of a doctor’s loan include:
- Fixed- or adjustable-rate options
- Up to 100% financing
- No monthly mortgage insurance payments
- Favorable repayment terms
Additionally, there are different offerings depending on the applicant’s status. For practicing doctors (MD, DO, DPM, DDS, and DMD), doctor’s loans can offer:
- 100% financing for loans up to $750,000
- 95% financing for loans up to $1 million
- 90% financing for loans up to $1.5 million
For licensed residents, interns, and fellows in MD, DO, and DPM programs, doctor’s loans can offer:
- Maximum of 100% financing for purchases and rate/term refinances
- Maximum home loan amount of $750,000
Features of a Doctor’s Loan
Most doctor’s loans have the following features:
- Zero or very low down payment required
- No rate increases on jumbo loans
- No private mortgage insurance
- Lending based on signed employment contract instead of paystubs
- Less critical of student loan debt
These loans offer a lot of peace of mind to doctors as they start their journey. Without them, many doctors wouldn’t be able to purchase a home for years due to the looming student loan debt that they have accumulated throughout undergraduate and medical schools. With a doctor’s mortgage loan, doctors are able to provide a home for their families regardless of student loan debt.
To get a doctor’s mortgage loan in the Kansas City Metro Area, contact First Fidelis at 913-205-9978. First Fidelis can help doctors finance their home without the hassle of a traditional mortgage loan. Our expert lenders are here to help.