If you are a licensed physician, doctor, dentist, pharmacist, in residency or other qualifying medical licensee, you may be eligible for a Physician Loan. Physician loans are a type of loan specifically designed for doctors and residents to help them buy a primary or secondary home, refinance an existing home, or build a dream home. (More About Physician Loans)
Physician loans are available from Physician Bank, and they come with several different benefits. For one, physician loans usually have lower interest rates than traditional mortgages. They also often have little to no down payments and more flexible repayment terms with loans up to $3 million. In addition, these home mortgage loans offer more favorable terms than those available to the general public, such as zero-dollar down payments and higher loan-to-value ratios. However, before you apply for a physician loan, it’s important to understand the requirements.
In this article, we will discuss what you need to know about Physician Loans. We will cover how to qualify for a loan, the different types of Physician Loans available and some of the benefits of using one.
When you’re ready to talk with a Physician Bank loan specialist, make sure to consider the interest rate, loan term, down payment, and any other fees or charges.
Qualifying For a Physician Loan
Qualifying for a Physician Loan is easier than you may think. In most cases, you will only need to provide proof of your medical license and income. The Physician Bank minimum credit score requirement is 660, and you can even qualify for a loan with student loan debt.
Types of Physician Loans
There are two main types of Physician Loans: fixed-rate and adjustable-rate. Fixed-rate loans have interest rates that remain the same for the life of the loan, while adjustable-rate loans have interest rates that can change over time. Both types of loans have their own advantages and disadvantages, so it is important to choose the right one that fits your needs.
Benefits of using a Physician Loan
- Zero-dollar down payment – If you’re looking for a loan with zero-dollar down payment, then a physician loan could be a great option. With a zero-dollar down payment, you can get the financing you need without having to come up with any money upfront. This can be a great way to start your career. Physician loans can also offer other benefits, such as lower physician loan rates and flexible repayment options.
- No private mortgage insurance charge to you – If you’re like most homebuyers, you probably don’t want to pay for private mortgage insurance (PMI). PMI is a type of insurance that protects lenders in the event that a borrower defaults on their loan. This insurance can be costly, and it is often required for conventional loans. As a benefit to our physicians, the PMI is paid by Physician Bank which makes it more affordable for borrowers.
- Higher loan-to-value ratios (LTV) – If you’re looking to take out a physician loan, you may have heard the term “higher loan-to-value ratio.” But what does that mean? In short, a higher loan-to-value ratio means that you can borrow more money relative to the value of the property you’re using as collateral. For example, if you’re taking out a loan to buy a house worth $100,000, and the lender will lend up to 80% of the value of the property, then your loan amount would be capped at $80,000. But if the lender is willing to lend up to 90% of the value of the property, then your loan amount could be as high as $90,000. Physician Bank offers 100% LTV up to $1M with 720+ FICO score with increments depending on the loan amount and credit score.
Of course, just because you can borrow more money doesn’t mean you should. A higher loan-to-value ratio may mean a higher interest rate, so you’ll want to be sure you can afford the monthly payments.
But if you’re confident in your ability to make the payments, a higher loan-to-value ratio could help you get the home you want without having to come up with as much cash up front. So, if you’re considering a loan, be sure to ask your Physician Bank Loan officer about the LTV.
If you are a licensed physician, dentist, PharmD, resident or other qualifying medical licensee, a Physician Loan may be the right choice for you. Because of the favorable terms listed above, you most likely will be able to get into your dream home with ease. If you have any questions, please Contact Physician Bank today to learn more about Physician Loans and how they can benefit you.
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