The Difference Between Physician and Resident Loans

The difference between Established Physician and Resident Physician

Understanding exactly what resident loans are will help you better gain an understanding of their unique benefits.  Doctor loans are intended for residents, physicians, as well as established doctors.  They are established to help those who have become doctors to get a fair shot at obtaining a mortgage or refinancing opportunity tailor-made to their particular financial situation.

Physician and Resident Loans, One in the Same

The truth is that resident loans and physician loans are exactly the same thing.  They are both a form of doctor loans that have been created to help those with big medical school bills obtain a loan for their first home.  These loans can also be obtained to help residents or established doctors get approved for a mortgage on a second home or refinance.  The idea is to give residents and doctors an opportunity to get a mortgage that is advantageous to where they stand financially.

How Do You Qualify

Qualifying for physician and resident loans is different than qualifying for conventional loans.  The first requirement is that you have to be a medical school graduate and currently a resident.  You could also be a physician or a doctor.  You must be applying for a loan in one of the 29 states that are eligible under these doctor loan programs.  There has been movement to expand to other states, and currently resident loans are available in over half of the states in the U.S.

Benefits With Medical School Loans

Loans from medical school can really harm your chances of obtaining a mortgage.  The great thing about resident loans, though, is that they can ignore student loans that are in a deferred status.  Deferred loans will not count towards your debt-to-income ratio when you apply for these types of loans.  This means that your medical school debt, which is likely quite large, will not have a negative impact on whether or not your loan is ultimately approved.

Low Interest Rates

Another factor differentiating resident loans from conventional loans is that resident loans are going to offer some very competitive interest rates.  These rates are likely going to be far lower than you would receive if you went to a local bank or mortgage broker.  The reason is that these interest rates are tailored specifically for residents and doctors and their unique financial situations.  You, as a doctor, are considered to be a stable person to whom money for mortgage can be lent more readily. This also means you can use resident loans to get lower interest rates overall.

Resident loans and physician loans are the same thing.  They are loans that can be used for a first mortgage, second mortgage, or refinancing of a current home to help you buy and keep the home of your dreams.  Residents and established doctors can have a hard time securing their first home mortgage due to medical school debt.  With the assistance of these resident loans and the doctor loan program overall, obtaining the mortgage and home you dream of is made easier.
 

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