A Complete Guide to Healthcare Mortgages for Doctors

Are you aware that there are mortgages specifically created for doctors? Healthcare mortgages are special mortgages designed to accommodate doctors to enable them to buy houses. As a doctor, it is crucial to know the right mortgage before you start. Many doctors find it hard to get conventional mortgage to cover their needs. This is even more difficult for doctors who are new in the field and have lower earnings.

Here is a short guide to help you understand healthcare mortgages for physicians.

What is a Physician Mortgage?

A physician mortgage is a loan specifically designed for medical experts. The good thing with a physician loan is that it has few restrictions and does not require a down payment. This is unlike conventional mortgages with numerous restrictions, and you must make a down payment before you get the homeowner loan. The reason why a physician mortgage does not have a lot of restrictions is that the loan largely depends on the future earnings of the doctors. This is an attractive offer for new physicians. In fact, a resident can use a letter of employment to prove their future earnings. This type of healthcare mortgage has come to the rescue of doctors who enter the workforce when much older and cannot afford the down payments for a home loan.

How Does the Mortgage Work?

Physician loans are different from a conventional mortgage. Therefore, they benefit doctors by enabling them to buy homes earlier than how conventional mortgages allow them. Even if some lenders don’t ask for a deposit, others will ask for a down payment that does not exceed 10%. This makes the mortgages an affordable option for the physicians.

Another thing is that these loans have higher limits than conventional loans. However, just like conventional loans, the amount you get in a doctor mortgage will depend on how much you will be financing. Most lenders do not consider the DTI ratio since they know that the new medical professionals have large student loans. According to studies, most new doctors have lower salaries and large student debts. Therefore, they are disadvantages when getting a conventional loan. Now, such debts and low wages are not accounted for when getting a mortgage, thanks to healthcare mortgages.

Is a Physician Mortgage Right for You?

From the details above, it seems like a physician loan is an appealing choice for new doctors. The mortgage helps doctors who have just started earning to buy their new home despite huge student loans and low salaries. However, this does not mean you must take the loan. Some doctors continue to live on rentals and live below their means. The mortgage has 100% financing, and you don’t need insurance. Furthermore, you can get a mortgage with low credits and income standards.

Conclusion

If you are a physician and wondering how you will buy your new home, a physician mortgage in healthcare mortgages can help you. However, before you take the loan, it is advisable to look into other financing option