Receiving a physician or doctor loan can provide you with an opportunity to get the loan for your first or second home. Physicians are in a difficult position after graduating from medical school. Chances are that they have accumulated a high amount of student loans. They are also likely to be trying to get on their feet; looking for somewhere to call their own, something to own. Physician loans can provide that lifeline to obtaining a mortgage that works and fits with the individual’s current financial situation.
Qualifying for the Program
In order to qualify for physician loans, you need to meet certain qualifications. Those applying for physician loans have to be true doctors. You will not be eligible for these loans if you are currently enrolled in medical school. Even if your graduation date is mere weeks away, your application will be denied. You have to be completely out of medical school in order to qualify.
Once you have finished medical school, you need to be considered a doctor before you can go through the application process. Being a resident medical doctor or physician will automatically qualify you for one of these physician loans. Doctors of ophthalmology, doctors of podiatry medicine, or fellows are also going to qualify. If you are a doctor of dental medicine or science, you will also qualify for physician loans.
Can You Qualify if You Are Refinancing
You do not have to be applying for your first mortgage in order to qualify for physician loans. These loans can be obtained even if you are refinancing. Chances are that you are going to be able to refinance 100% of the loan to value and still get the great rates that go along with physician loans. This can allow a medical student to buy a home on his own while in medical school, and then refinance with physician loans after graduating.
What if You Are Not a U.S. Citizen
One of the requirements of physician loans is that you have to be a citizen of the United States or a permanent resident. A passport, work visa, or green card is going to be necessary as part of the documentation that you will need to present.
The physician loans application process will also weigh your student loans very heavily. If your student loans are deferred, the physician loans are going to not include these loans in your debt-to-income ratio. This can help you in avoiding higher rates and paying more interest.
Physician loans are a great option for those who have just graduated medical school and are starting their residency. The rates that are offered are preferential for doctors. They can allow doctors with a heavy burden of student loans to purchase a home at a rate that is better than what they could get on the open market. Physician loans have some requirements in terms of qualifications, but are definitely worth pursuing if you meet the qualifications.