Doctors make a difference in the lives of their patients every day. They also enjoy the benefits of job security and the potential to earn higher wages than other occupations. These characteristics can put them in an excellent position to obtain a mortgage. However, with a decade or longer of medical training, medical professionals such as physicians, surgeons, dentists and veterinarians often incur substantial school debt. This debt can make it tough to qualify for many types of mortgages and buy a home as a doctor.
Lending for doctors
Fortunately, if you’re a superstar in scrubs, there are lenders who understand the unique challenges of offering mortgages to doctors. This article explores special loan programs that can help you buy your first home as a doctor, how your debt-to-income ratio comes into play as well as the best loan programs.
Buying your first home as a doctor
If you’ve previously owned a home or are looking to buy for the first time, you have the option of choosing a loan specifically designed with medical professionals in mind. These mortgage solutions are called physician mortgage loans, doctor loans or medical professional loans. Unlike most loan programs that require private mortgage insurance with less than 20% down, physician loans may not require a down payment, private mortgage insurance or any special underwriting conditions.
Buying a home in residency
According to the American Medical Association, you won’t maximize your earnings until you’ve completed your graduate medical education. But just because you’re in the early stages of your career doesn’t mean you have to wait to buy a home. Whether you’re a resident, fellow or attending physician, a medical professional loan may be your key to buying a home when you’re ready.
As a borrower, your monthly debt payments are measured in relation to your gross monthly income. This is your debt-to-income ratio or DTI. When calculating your monthly debt payments, lenders usually include auto loans, student loans, mortgages, personal loans, credit lines, child support, alimony, and your credit cards’ minimum payment amounts. If your monthly debt exceeds a certain percentage of your income, you may have trouble qualifying for a conventional mortgage. The advantage of applying for a physician loan is that student debt may be excluded from your DTI, regardless of whether you’re looking to buy a home during or after residency.
Qualifying for a home loan for doctors
To qualify for a medical professional mortgage, you must prove present or future employment. This means that you may also be eligible if your residency begins after you close on a new home.
A specialized loan program for doctors
If you’re working in one of the eligible medical professions, including as a chiropractor, doctor of dental medicine or a doctor of veterinary medicine, Guild offers a mortgage solution tailored to your needs. Most home loans require some amount of down payment. With our medical professional mortgage program, you may be able to put zero money down and finance the entire purchase amount. In addition, our program provides an option for avoiding mortgage insurance regardless of the size of your down payment.
The best way to take advantage of this program is to work with a loan officer in a local Guild branch. They’ll be able to confirm your eligibility, answer any questions you might have and help with your application. So connect with a loan officer today!