You have no doubt heard a variation of the title—maybe "Physician Loans," "100% Financing for Doctors," or more commonly "The Doctor Loan." So, what are doctor loans?
Basically, it’s a high LTV (loan-to-value) or little-money-down loan for doctors. There is typically no mortgage insurance—upfront or monthly—and the doctor can put as little as no money down. Banks may differ but the mortgage I offer has 30-year and 15-year fixed options as well as a list of ARMs from as short as one month to as long as ten years without an adjustment. The rates are very competitive and typically the conforming loan limit of $417,000 (in most states) is not a cap for this program, but it may be if your doctor is still in residency.
Why only doctors? A good question—and I can speculate as I've heard various reasons. Doctors typically come out of school, residency, or fellowship with lots of options for stable employment and usually contracts that guarantee their income for a certain period of time. In a nutshell, they can afford to pay a mortgage right away. They do not, however, have a lot of money to put down on a house and on average have more student loan debts to re-pay than any other industry.
So the doctor loan allows doctors who come out of medical school with a lot of debt BUT a good paying job to get into a house with no money down and an affordable mortgage. Service and experience matter when suggesting a lender for these loans as the doctors tend to be very busy and want things made simple. Please email me directly or go to my website for more information on the topic.
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