16 Benefits of a Physician Loan

Benefits of a Physician Loan

Physicians can have unique financial situations, and physician mortgage loans from Physician Bank can be designed specifically with them in mind. Some of the benefits include the ability to finance up to 100% of the purchase price of a home, no private mortgage insurance (PMI) fee required, lower down payments, higher loan-to-value ratios, student-loan payment calculation flexibility and flexible repayment options. So, what do all these benefits mean for you? Keep reading to find out!

  1. 100% Financing: Physician loans provide the ability to finance up to 100% of the purchase price of a home, meaning no down payment is required! That also means you won’t have to pay private mortgage insurance (PMI) because Physician Bank covers that cost.
  2. Flexible Down Payment Options: Not only are physician loans able to finance up to 100% of the purchase price, but they also offer flexible down payment options for those who want or need less than 100%.
  3. Higher Loan-to-Value Ratio: When you’re looking for a physician loan, one of the most important factors to look at is Loan-to-Value Ratio. What does that mean? Simply put, Loan-to-Value Ratio is the percentage of your home’s value that will be used to secure your loan. For example, if you have a Loan-to-Value Ratio of 80%, that means your mortgage will amount to 80% of the home’s value. It’s important to understand this ratio before you apply for a physician loan, since it can affect your interest rate and other terms. Physician loans allow for a higher loan-to-value ratio so you may get approved for a loan amount that was previously unavailable with more traditional mortgages.
  4. Higher debt-to-income ratio allowance: physician loans often allow for higher debt-to-income ratios than other types of mortgage options, giving you more financial flexibility.
  5. Student Loan Payment Calculation Flexibility: Physician loans are designed to make it easier to qualify for a loan by considering your student-loan payments in the calculation of your total debt.
  6. Flexible Repayment Options: Physician loans offer flexible repayment options, which means you can choose between a fixed-rate or adjustable-rate loan depending on your needs and budget.
  7. Competitive Interest Rates: Physicians will get access to competitive interest rates due to their unique financial situation, so you could end up saving money over the life of the loan with this benefit.
  8. Tax Benefits: Homeowners may be eligible for certain tax benefits such as mortgage interest deductions, which could help you save money at tax time.
  9. Credit Score Impact: Physician loans can help improve your credit score with on-time payments and the ability to demonstrate financial responsibility.
  10. No Mortgage Insurance Required: Because Physician Bank covers the costs for private mortgage insurance (PMI), you won’t have to pay an extra fee each month that adds up over the life of the loan.
  11. Fast Prequalification: Most lenders offer fast prequalification so you can get an idea of how much you can borrow and if you qualify for the loan.
  12. High Loan Limit: Unlike other mortgages, Physician Bank loans have a high loan limit – up to 3 million – even higher if you have excellent credit. Most likely, you can borrow what you need to finance your home purchase.
  13. Free Financial Analysis: Physician Bank provides free financial analysis services to help you figure out how much house you can afford and how to best use your physician loan.
  14. Easy Refinancing: Physician loans make it easy to refinance if you need a lower interest rate or better terms.
  15. Flexible Closing Costs: Physician Bank offers flexible closing costs with physician loans, which means you could end up paying less in the long run and have more money available for down payment and other expenses.
  16. Personalize Your Mortgage: Physician loans allow you to personalize your mortgage so you can get the payment terms, interest rate and other features that best suit your needs.

Each of these benefits adds up to make physician home loans an attractive option when it comes time for doctors and medical professionals to purchase a home. With all these potential advantages, it’s worth considering if a physician loan is right for your needs! If you decide a physician loan is the right fit for you, make sure to ask a Physician Bank loan specialist about all the details and what specific features we offer. With an informed decision, you’ll be able to maximize all the potential advantages a physician loan has to offer and get one step closer to owning your dream home!

Are you a physician in need of a loan? Physician Bank was made for you!
Start a conversation with us today.

Physician Bank is an Equal Housing Lender and Member FDIC. Loans are subject to approval. 100% financing is available on physician loans up to $1,000,000. Property use must be primary residence. 100% financing is not available on physician loans over $1,000,000. Interest rate lock subject to terms and conditions. Partnership financing is available. Physician loans are available to Medical Doctor (MD), Doctor of Dental Surgery (DDS), Doctor of Medicine in Dentistry (DMD), Doctor of Optometry (DO), Doctor of Osteopathic Medicine (OD), Doctor of Podiatric Medicine (DPM), Doctor of Veterinary Medicine (DVM), or Registered Pharmacists (PharmD).

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