Physician’s Income and Impact on Home Loans

Oct 18, 2023

As a physician, you’ve undergone rigorous training and committed countless hours to your profession. Your hard-earned income, whether through salaried positions, private practice, or other avenues, should definitely work in your favor when applying for a home loan, right? Not always. The type of income you earn can absolutely play a significant role in the home loan approval process.

Salaried Income

Salaried physicians typically have a more straightforward path in the home loan application process. Regular, predictable income provides lenders with the assurance that the borrower can handle monthly mortgage payments.

Self-Employed or Private Practice Income

Physicians who run their private practice or are self-employed might face additional scrutiny. Lenders generally request at least two years of financial statements to assess stability.

Bonus or Incentive-Based Income

While bonuses can boost your overall earnings, lenders may be cautious unless you have a history of consistent bonus income.

Locum Tenens or Contract Income

Locum tenens or physicians on short-term contracts may have to demonstrate a consistent earning history for lenders to consider this income.

Tips for Physicians:

Always keep thorough and organized financial records.

Consider consulting with a financial advisor familiar with the nuances of physician income.

If you’re on the brink of a significant career or income shift, it might be wise to apply for a loan either before or after the transition, when your income type is most stable.

Physicians have unique financial profiles. By understanding how lenders view your income type, you can better prepare and position yourself for a successful home loan application.

Curbside Consults for Your Home Buying Journey

Whether you’re just beginning to explore the real estate market or are ready to dive in, Curbside Real Estate is here to guide you. Schedule a Curbside Consult. If you’re pressed for time, smply complete our quick consult form to get matched with ethe best option tailored for you.

For deeper insights into how different types of income can affect loan approvals, The Mortgage Reports is a comprehensive resource.

Disclaimer: This blog is intended for informational purposes only and does not constitute real estate, medical, or financial advice. Always consult with a qualified professional before making any decisions related to your home or career.