Will Student Loans Affect Ability to Get Doctor Loans

Will student loans effect my ability to get a Doctor Loan?

Obtaining a doctor loan can be a huge help for physicians in securing their first mortgage.  Purchasing a home for the first time can be stressful for a recently-graduated doctor starting a residency at a medical practice.  The student loans that inevitably come with the diploma only add to the stress.  Understanding the impact of student loans on the chances of receiving doctor loans can help with the application process.

Student Loans and Debt-to-income Ratio

Your debt-to-income ratio will largely determine the buying power that you have in securing doctor loans.  How much you can obtain for a mortgage is dependent on the amount of money you are bringing in compared to the amount you already owe in payments. 

Student loans will likely be in a deferred status for a period of time after graduation.  This is an ideal time to pursue doctor loans.  This is because when your student loans are in a deferred payment status, they will not be included as part of your debt-to-income ratio in the key mortgage calculation. This means that your student loan debt will have no real impact on the overall analysis of your financial situation and whether or not you get approved for a loan.

Do the Student Loans Impact Approval At All

Student loans are often cause worry as to whether or not they affect the chances of being approved for doctor loans programs.  Once you are an established doctor and you are paying back your student loans (i.e. loans are no longer in deferment status), this is going to force your student loans to be included in your overall financial analysis.  Once the student loans enter a repayment status, those debts will then be included in your debt-to-income ratio.  This means that the student loans can have an impact on whether or not your doctor loans program application will be approved or denied.  If you are trying to obtain a mortgage that pushes your debt-to-income ratio to an overly high level, the chances that you will be approved go down significantly.

Doctor loans are a great way to secure a first-time mortgage for either a recently-graduated resident or an established doctor.  Understanding how your student loans are going to impact the overall approval process can help you get a realistic idea about whether or not you might be accepted into the program.  This knowledge could also help you to determine your buying power. The debts you have versus your income is going to heavily determine the amount of mortgage loan for which you will be approved.  Student loans can have a major impact on that number.

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