Should you consider getting a physician loan to buy your house?
Read our Physician Loan Q & A.
What are physician loans?
Mortgages tailored to physicians. Physicians are a group of people with a lifelong high earning potential but many start out with a heavy burden of student loans. Because of this, financial institutions and lenders have created loan products tailored to and offered exclusively to physicians. These are called physician loans or doctor loans.
What is the difference between a physician loan and a regular mortgage?
- Physicians loans are usually high dollar loans, offered with very little or zero down payment and with no private mortgage insurance (PMI) required.
- Most regular or conventional mortgages will require a down payment of 20%.
- Some government loan programs like FHAs do not require a 20% down payment, but loan amounts have a cap, and borrowers pay a private mortgage insurance (PMI). Other government programs like VA loans are limited to veterans and current members of the Military.
- Bottom line is, apart from physician loans, it is difficult to find loan products that combine a high dollar amount, minimal down payment and no private mortgage insurance, all in one package.
Do you think I should get a physician loan?
It depends on your individual situation. Give me a call. I will refer you to some very reputable lenders that my company works with. We always refer more than one so you can choose who gives you the best deal.
Here are two examples of physician loan programs offered by two different banks.
|Bank A||Bank B|
|Maximum Loan to Value Ratio (LTV)||100% up to $650,000
95% up to $850 for residents
95% up to $1,000,000 for practicing physicians
|100% up to $750,000
95% up to $1 million
85% up to $1.5 million
80% up to $2 million
|Maximum Loan Amount for Residents/Fellows/Interns||$850,000||Applicable on case by case|
|Max. loan amount for practicing physicians||$1,000,000||Case by Case|
|Private Mortgage Insurance (PMI)||Not required||Not Required|
|Minimum FICO score||LTV>90% = 720 LTV<90% = 700|
|Loan Purpose||Purchase Only. No Cash out||Cash out not applicable on secondary residences|
|Escrow for taxes and Insurance||Required|
|Occupancy||Primary Residence Only||Primary and Secondary Residences|
|Eligible Property types||One-unit singe family detached/ Attached, warrantable condos and PUDs||Case by Case|