With high interest rates and home prices, many are questioning whether now is the right time to buy a home. Many individuals and families are getting priced out of the market. Doctors, dentists, vets, pharmacists, and other qualified physicians have some advantages that still make buying a home a good investment. A physician loan may be the answer.
A physician loan – a home loan specifically designed for doctors, residents, and other qualifying medical professionals – is one benefit physicians have in this market. Unlike conventional loans, this loan from Physician Bank offers 100% financing and no private mortgage insurance (PMI) payments. Borrowers can buy a home earlier than usual because they don’t need to save for a down payment first.
If you’ve already started saving up for a down payment, you can put that money to good use by:
Physician loans differ from conventional loans in many ways. Physician loans don’t require a down payment for loans up to $1 million. Conventional loans typically require at least a 5% down payment.
At Physician Bank, physician loan borrowers do not pay PMI, regardless of the amount of down payment. Borrowers of conventional loans typically will pay PMI if their down payment is less than 20% of the price of the home.
Interest rates for physician loans don’t fluctuate based on credit score but do require a score of 660 or higher. With conventional loans credit score plays a large part in determining interest rates and a credit score of 620 or higher is typically required.
Physician loans aren’t immune to the higher interest rates of our current market. One way to get a better interest rate is to take advantage of an adjustable-rate mortgage (ARM). Physician Bank offers two types of ARMs for physicians:
With both ARMs there is no prepay penalty, so you can refinance for a better rate when the market improves.
Physicians with the following degrees can apply for a physician loan:
You will be required to provide proof of your degree and employment when you apply. This can include an employment offer or pay stubs and a medical license to practice. If you’ve just completed medical school, you can provide any combination of 2 of the following documents:
Physician Bank offers these additional features:
Physician Bank offers more than just physician loans, including:
Physician loans can be a great way to buy a new home, even when interest rates are high. If you’re a doctor, dentist, vet, pharmacist, or other medical professional looking for a new place to live, we encourage you to apply today. Our team of mortgage lenders is here to help you find the best solution for your needs.
Are you a physician in need of a loan? Physician Bank was made for you!
Start a conversation with us today.
To begin your Personal Loan application, please enter your contact information below. You will then be directed to the BHG website to continue your application. We look forward to serving you soon.