Why are physician home mortgage loans the best options for doctors?
The physician mortgage loans provide doctors with easy payback options, amicable interest rates, and easy-to-qualify criteria. Here are the few ways in which a specialized home loan can save you a fortune –
- They demand nominal down payments that range between 0% and 5%.
- These loans do not demand private mortgage insurance (PMI), although the down payment can be less than 20%.
- The lending parties do not include the outstanding student loans in the debt-to-earnings ratio of the applicant physician.
Contracts are valid evidence for all future earnings. Pay stubs are proof enough for the banks to sanction the amount.
There is no catch. The interest rates for physician home loans are always higher than regular home loans. The interest rate varies by a flat 1% or so. Most doctors do not mind that since it is not a secret and it is more of a convenience fee for bypassing the stringent qualifying criteria the regular home loans in the market have.
How are physician loans in reality?
These are unique loans that every physician should try before buying their dream home. These are particular loans that every physician should try before buying their dream home. Banks usually underwrite these loans themselves and do not sell them to other parties, who, in turn, sell them as securities on Wall Street. Therefore, the terms and conditions are much more flexible than standard loans.
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