Medical Students transitioning to Residency, Existing Residents, Fellows, Attending Physicians, and Dentists.
Who is eligible for a Physician Loan?
How much will I need for a down payment?
Physicians can put down as little as 5% on their home purchase. Mortgage Insurance (PMI) is waived to reduce the monthly mortgage payment. This allows for either a greater monthly savings or higher loan qualifications. (100% financing may be available in some states)
Can a physician loan be obtained prior to a start date?
Yes. Closings can take place up to 60 days before a start date with a fully executed employment contract. Future income will be used for qualifying purposes.
How is student debt counted in qualifying debt for a mortgage?
If the student loans are deferred or in forbearance for at least 12 months, the debt will not be counted against the physician’s qualifying loan amount.
What types of loan terms are available?
Both fixed and adjustable rates are available. Depending on the length of time you plan to stay in your new home, options exist to help reduce the monthly payment.
Do I need a pre-approval before searching for a home?
Yes. It’s important to understand how much home you can afford before shopping with a Realtor. A pre-approval is also required to present an offer to a seller showing your strength as a buyer.
Do I need to use a buyer’s agent to buy?
Using a buyer’s agent with experience working with physicians and dentists is highly recommended. These agents not only understand the home buying or selling process, but also know how to structure your offer to be competitive in the negotiation process and to facilitate the physician loan.
What inspections are required when purchasing a property?
Customary inspections include a general home, pest, radon and/or lead paint inspection. Some states have requirements such as septic inspections before a property can be transferred. Your lender may require a water quality and quantity test if a private well is on the property.
What type of properties can be financed with the physician loan?
Single family, condominiums, townhomes, and multifamilies with 1-4 units can be financed with the physician loan.
How is the value of a property determined?
When a property is listed, the listing agent determines fair market value based on comparable sales in the same neighborhood with likeness to the subject property. The lender will also order a professional appraisal to validate the sales price for lending purposes.