FHA Loan vs Physician Loan
FHA loans are one of the most popular government back loan programs. They can make owning a home easier for many people, but how do they compare to our Physician Loans? First lets take a look at how FHA loans work.
The FHA loan was created by the Federal Housing Administration as an alternative to conventional loan programs. The main advantage and what makes a FHA loan so popular is that the down payment is much lower then what you’d find with a typical conventional loan. With a FHA loan you only need 3.5% down. Also the financial requirements tend to be some of friendliest.
However there are lending limits, it can vary in different areas but in most areas that limit is around $417,000. Also there are high private mortgage insurance rates that can add hundreds of dollars a month to your mortgage.
Where doctor loans can be a better option is that there is no down payment. Even with a down payment as low as 3.5% you still need to pay thousands of dollars up front when you purchase a home with a FHA loan.
With doctor loans you don’t need to worry about the strict loan limits of FHA loans. In many areas those loan limits can be very restricting. Especially if you are looking to purchase a higher priced home or a home in an exclusive part of town.
Doctors don’t have any private mortgage insurance either, PMI as it’s also known has can add up. When there is a reason not to pay hundreds of dollars more a month, why pay it?
When you compare our doctor loans to FHA loans you can see there are many advantages that can get you in a home for less money and much easier.
- “Inspired by Physicians, for Physicians”