If you are a physician looking for a new home, you may be wondering about a physician mortgage loan. What are they and what can I do with them?
A physician mortgage loan from Physician Bank is a specific type of home loan that is designed for doctors, physicians, dentists, pharmacists, and veterinarians. They offer several benefits that can make it an attractive option for doctors who are buying a home or second home.
A Physician Mortgage Loan with Physician Bank typically has more relaxed credit requirements than other types of mortgages, making it easier for physicians to qualify. Our loans typically have more favorable interest rates than traditional mortgages as well, so you’ll be able to save money in the long run. In addition, Physician Bank mortgage loans also have lower down payment requirements and come with an additional perk where the customer does not pay for private mortgage insurance (PMI) – Physician Bank pays the PMI.
PMI is usually required when borrowers put down less than 20 percent as a down payment on their loan. This makes our physician mortgage loan an attractive and cost-effective way for physicians to purchase the home, since qualified physicians do not pay PMI payments during the life of the loan; this means that your monthly payments will likely be lower as well.
A physician mortgage loan can also be designed for doctors who have large student debt loads. Physician Bank considers high levels of debt that may be part of a doctor’s financial obligations and offers them more favorable terms than what they would typically receive with traditional financing options. Again, a physician loan requires little to no down payment, has lower closing costs, and offers more flexible repayment terms.
How to Get a Physician Mortgage Loan
So how do you get a physician mortgage loan? The first step is to talk with a Physician Bank Loan originator. Our loan originators have been working with customers for many years, providing Physician Mortgage Loans. They understand the process and will provide the loan options that best fits your needs. Once you’ve identified a loan originator you want to work with, it’s time to start the application process.
The process includes getting pre-approved for the loan, submitting your financial information, such as income documentation, credit reports, and proof of assets; providing information about any co-borrowers on the loan; and finally, submitting a loan application.
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How to Qualify for a Physician Mortgage Loan
First, we will look at what type of credit you need in order to qualify for a physician mortgage loan. The qualifications are not as stringent as those for other types of mortgages and includes having a minimum credit score of 660 or higher, property with value equal to the loan amount or more and a debt-to-income ratio under 45%.
Debt-to-income ratio is one of the most important metrics that lenders look at when considering a loan. This figure measures how much of your monthly income goes towards debt payments. A high debt-to-income ratio can be a sign that you are struggling to make ends meet.
If you don’t have good credit, there are ways to improve your credit score so that you can be approved for a physician mortgage loan. Paying all bills on time, reducing your debt load, and avoiding late fees are just some of the ways to increase your credit worthiness.
In addition to meeting the minimum requirements for credit, it is important for physicians who want to qualify for a physician mortgage loan to remember that Physician Bank will also look at your income and other financial factors. We want to make sure you are able to pay back the loan, so having consistent sources of income from a stable job is essential.
Research Options with Physician Bank
As you can see, physician mortgage loans are a great option for healthcare professionals who want to purchase or invest in real estate. With relaxed credit qualifications and numerous additional benefits, there is a lot to consider when it comes to taking out a physician mortgage loan. Do your research and speak with a Physician Bank loan expert if you have any questions about the process – it could be the key to unlocking your dream home!
Whether it’s using a physician mortgage loan or another form of financing, buying a home is an exciting milestone for anyone who is ready to make this big financial commitment. Understanding what type of loan is right for you will help ensure a smooth and successful home-buying experience.
By researching these loans and comparing them to other options available in the marketplace, doctors can find the most cost-effective way to finance a home without having to worry about additional PMI payments. With competitive interest rates, flexible repayment terms, and additional perks with Physician Bank, physician mortgage loans are an attractive option for those looking to buy their first home, re-finance an existing home or purchasing the home of their dreams.
For more information about physician mortgage loans and the benefits they provide, talk to a Physician Bank loan officer. With their help, you can determine if this is the best option for you and take the necessary steps to get started on your journey to homeownership.
Note: All loans are subject to credit approval.
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