If you’re a physician who has been unable to qualify for a conventional loan and you answer “yes” to the following three questions, a physician home loan may be right for you:
- Do you have a significant amount of student loan debt?
- Due to a limited work history and/or being paid on a 1099 (vs. a W-2), do you have less than two years’ worth of tax returns?
- Do you have little money saved up for a down payment?
Physician home loans are special portfolio loans* designed to remove some of the common obstacles that incoming and existing residents, fellows and new doctors face when trying to qualify for conventional loan products. Banks which offer physician home loans have realized that physicians make good loan candidates because:
- They have an extremely low default rate;
- They have high future or current earning power; and,
- They typically have jobs that are less affected by swings in the economy.
There are several benefits to physician home loans, including:
- Lower down payments (just 5 – 10% of the purchase price)
- No PMI (private mortgage insurance)
- Competitive rates
- Flexible with student loan debt
Not all banks offer physician home loans and each bank’s guidelines are different, so you may not qualify for one but may be just right for another. As an expert in physician home loans, we are here to help you find a loan product that is perfect for you. We have already pre-negotiated exclusive discounts with our network lenders for all our physician clients.
* A portfolio loan is a loan that a lender keeps within their own institution and own investment portfolio. These lenders are therefore able to use more flexible guidelines in qualifying people (such as physicians) for these loans. The vast majority of conventional loans are packaged and sold on a secondary market. Therefore, they have to conform to certain rigid guidelines, particularly those created by Fannie Mae / Freddie Mac, Federal Government institutions.