As a physician, you’ve probably realized that obtaining a traditional home loan is a little bit challenging right out of medical school.
The reason for this is mostly because you’ve probably racked up a significant amount of debt—and now have a debt-to-income ratio that doesn’t really make sense for a typical mortgage loan.
Primary mortgage markets and secondary mortgage markets are difficult enough to understand without needing to jump through a bunch of extra hoops to become a homeowner. And unfortunately, doctors often bear a significant cost in the ‘complexity’ of this process.
Well, to help solve this problem, many lenders have put together physician mortgage loan products to help doctors become homebuyers.
Here’s the thing.
As a doctor, you probably make more than enough to pay for a mortgage.
But the fact that your debt-to-income ratio is weird makes it difficult.
Due to this, you may be wondering if a physician mortgage loan is a good choice.
Well, here are five reasons for why getting one actually makes good financial sense.
1. They Help You To Overcome A Unique And Challenging Financial situation
As a doctor, you definitely have a challenging financial situation on your hands—in the sense that you have a lot of student loans and medical school debt to pay down, but not a super impressive income history (at least, as of yet).
It’ll take you a little while to build up those financial numbers.
But getting a doctor’s mortgage can actually help you to speed up that process and get into the home-buying lane faster than ever.
This is great news, because doing so comes with many life benefits.
2. They Empower You To Become A Homeowner Faster
Becoming a homeowner comes with many advantages, such as building equity, having the freedom to customize your living space, enjoying potential tax benefits, and establishing a sense of stability and belonging in your community.
And it’s important not to let these advantages slide by just because you have some medical school debt, and due to the fact that your income hasn’t caught up to your education yet.
You can really help to mitigate the downsides of the situation by using a physician’s mortgage loan. And honestly, it’s not a bad financial choice to do so.
3. They Can Always Be Refinanced Later
One of the downsides to a physician’s mortgage loan is the fact that it requires a pretty high interest rate to offset some of the risks that lenders take on by creating specific mortgage products for medical professionals.
This is sort of the extra cost you pay for the program’s convenience.
With that being said, don’t let this dissuade you too much.
You can always refinance later after your financial situation has improved.
You’ll still retain your equity, and you’ll probably get an even lower monthly payment—but you’ll still be months or even years ahead of the game.
Buying a home sooner rather than later can be beneficial as it allows you to start building equity, take advantage of the potential appreciation in property value, and lock in historically low interest rates before they rise.
4. They Don’t Usually Require A Down Payment
Another fantastic thing about physician mortgage loans is that they don’t require a down payment.
Generally speaking, you can get into these types of mortgages without a big lump sum of money upfront.
Well, once again, this is a huge advantage to getting this type of loan, especially as a new doctor who hasn’t yet had the time or opportunity to save up a big down payment.
You’ve set yourself up for a bright financial future, and now you deserve to be a homebuyer as a result.
And a physician’s loan is a fantastic way to make the most of it.
5. They’re Specifically Formulated To Help Doctors Become Homeowners
And this is really the crux of it all.
As a doctor, you have the ability to afford a home payment with ease.
So taking advantage of a doctor’s mortgage loan can equip you to take the homeowner leap without needing to wait for your income numbers to fall into the range of what lenders typically consider ‘acceptable.’
There you have it.
5 reasons why physician mortgage loans make financial sense for doctors who want to become homebuyers.
Now, equipped with this information, you’re ready to hit the ground running.
So get out there and make the home buying process happen for you!