As a recently qualified doctor, it must be difficult trying to get a home loan to buy your sweet abode. Your expensive educational fees may have exhausted your finances and with the limited to no employment history, getting a home loan is also difficult. For this purpose, the physician mortgage loan can be a great option for you.
You might be wondering about how this loan works and how to apply for it. Without further ado, let’s understand this type of professional loan in further detail and learn some tips and tricks for a smooth application process.
Benefits of a Physician Mortgage Loan
Physician mortgage loans can be a better option for medical professionals than regular mortgage loans. These allow you to get the required amount with affordable interest rates, a 0% to 10% down payment, and flexibility in employment and Debt-To-Income (DTI) criteria, etc. Even Private Mortgage Insurance (PMI), which secures the lender against default in repayment, is not required for these loans.
The interest rate for these loans is not fixed. The tenure usually begins with a lower rate which gradually increases as the tenure progresses. In order to get this loan, you have to meet certain eligibility criteria. Read further to find out the various factors that determine your eligibility and the documents required for this professional loan.
Eligibility Criteria For a Physician Mortgage Loan
Here are some basic eligibility criteria you will be required to fulfill to get a Physician Mortgage Loan.
- Criteria for Property
The home purchased using the loan should be for primary use. The borrower will be required to live primarily in the house purchased using the loan. You cannot get this loan to buy a secondary residence or for a home for investment purposes.
- Educational Qualification
You must be a qualified doctor to be able to take advantage of this loan. If you possess any of the following degrees, you can apply for a physician loan.
- Employment Criteria
Doctors need to go through internships, fellowships, and residency programs. Financial institutions know that in such situations, it is difficult to have a substantial income, as they are just starting out with their careers. Hence, a contract of employment is considered enough to prove the doctor’s income.
Things to Keep in Mind When Applying For a Physician Mortgage Loan
Now that we have understood the features and basic requirements of a physician loan, let’s dive into the application process.
- Explore Programs
Make sure to look at the various mortgage programs available to you, including the physician mortgage program. This helps you ascertain which plan fits your finances and requirements the best. Make sure to also look at multiple lenders and their offers for each type of mortgage before making a decision.
- Credit Score
A credit score is one of the most important aspects taken into account when determining your eligibility for most loans. This is also the case for a physician mortgage loan. Make sure that all your existing loan and credit card payments are done in a timely manner to increase your chances of getting this professional loan.
- Keep Documents Handy
Keeping all the documents for a professional loan handy is a great way to speed up the process. Make sure your financial documents like ITR, bank statements, and so on are the latest. Ensure to also keep your educational certificates handy.
- Pre-approved Mortgage
With the help of pre-approved mortgage loans, you can get a better chance of purchasing the house you want. This facility is available under physician mortgage loans. Make use of this and grab the chance to book your home in advance so that you don’t miss out on the opportunity.
With this information, make an informed decision when buying a new home. See if the physician loan meets your needs and if you have the documents for a professional loan. Get started now!