A physician loan is amortgage for medical doctors that doesn鈥檛 require private mortgage insurance, or PMI, even with a small or no down payment. This could potentially save a borrower hundreds of dollars off a monthly mortgage payment. A typical physician loan makes allowances for medical school debt and the chronology of a medical career.
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What is a doctor or physician loan?
What is a Doctor Loan? A Doctor Loan or Physician Loan is a mortgage specifically designed with medical professionals in mind. They offer features unique to individuals in the medical profession. What features do most Physician Loans have in common?
Why do lenders use physician mortgages?
The reason is that physicians are extremely profitable customers for lenders. They take out big loans early in their careers and almost always pay them off. Lenders use physician mortgage loans to lock in early-career doctors by lending them more money with fewer stipulations than their competitors.
What are the criteria for a physician loan?
Unique Criteria for Physician Loans. Normally does not require private mortgage insurance (PMI), even if less than 20 percent down payment. Often does not include student loan payments in debt-to-income ratio (or a lesser payment). Will accept a contract as evidence of future earnings鈥攊n lieu of pay stubs or W-2s,…
What are the current rates for physician mortgage loans?
These are not actual rates and are examples only: 1 Physician Mortgage Loans: 30 yr fixed rate 鈥?4.75% 2 Physician Mortgage Loans: 7/1 ARM 鈥?3.75% 3 Conventional 80/20: 鈥?First mortgage (80%) 鈥?30 yr fixed 鈥?4.25% 鈥?Second mortgage (20%) 鈥?Interest only HELOC (prime + .5%) 4 VA Mortgage (must be military): 30 yr fixed rate 鈥?4.25%