Some lenders offer special mortgage loans aimed at physicians. Here are 10 things to know about physician mortgage loans, according to a May 5 report from Bankrate:
- Physician loans are designed for medical professionals who might have a more difficult time qualifying for mortgages due to college and medical school debt.
- Physician loans can be taken out through a variety of lenders, including national lenders, community banks and independent mortgage companies.
- Physician loans don't require a down payment, with lenders offering up to a $1 million loan.
- Physician loans don't charge private mortgage insurance.
- Physician loans have a higher debt-to-income ratio.
- Physician loans can often be taken out right out of medical school with a signed offer letter but no job history.
- Physician loans typically have an adjustable rate as opposed to a fixed interest rate, meaning the monthly payment may change.
- Physician loans can only be used for primary residences as opposed to investment properties or secondary residences.
- Physician loans are typically limited to detached, single-family homes, not townhomes or condos.
- Physician loans face the risk of overleveraging.