The Doctor Mortgage Loan Program is designed to help those who qualify to receive a physician mortgage loan from participating lenders with zero to very little money down and no private mortgage insurance (PMI.)
Even before the Pandemic, professional healthcare workers faced packed work days, pressure from the demands of patients and co-workers, a fast-paced environment that could mean life or death literally, and emotional intensity. This has all been exacerbated over the past two years, putting physicians and other clinicians at high risk for burnout.
Burnout occurs as a result of long-term stress caused by emotional exhaustion, depersonalization from patients, and a decreased sense of personal accomplishment.
A survey of more than 500 healthcare workers in the Journal of General Internal Medicine, found that the majority of respondents reported significant psychiatric symptoms, such as PTSD, depression, and anxiety (75%). Additionally, a recent Washington Post/Kaiser Family Foundation survey revealed that more than half of front-line healthcare workers reported burnout with the highest rate among those ages 18 to 29.
These mental health issues may be related to mental distress from witnessing COVID-19-related deaths, extremely long work hours, abuse from patients protesting necessary medical treatment due to misinformation, and a general work-life imbalance.
Certainly better access to mental health treatment, including paid sick leave, is needed along with more protection and support from co-workers, healthcare leaders, and the general public. However, “home is where the heart is.” A safe haven to come home to after a long shift can be a welcome refuge for healthcare workers.
With younger healthcare workers bearing the brunt of burnout, their ability to afford their own homes is an additional burden that could help their long-term status and health. The good news is with physician home loans, young healthcare workers suffering from burnout can actually afford their own homes. Lenders understand the process of becoming a physician is a multistage process. Therefore, criteria for mortgage lending vary depending upon how far along a potential qualified borrower is in their career.
The average physician loan is able to make allowances for debt from med school debt and, therefore, these loans are incredibly flexible with debt-to-income (DTI) ratios. Many doctor loan programs don’t count med school debt if the payments are deferred or in forbearance for a certain period. Though most medical students are not at the stage for home-buying, Residents and other young healthcare workers are good candidates.
The Doctor Mortgage Loan Program helps those who qualify by offering fixed rate options, up to 100% financing and no monthly mortgage insurance payment, higher maximum loan amounts, and the ability to use an employment contract as evidence of income.
Lenders base the loans on future earnings by qualifying physicians. Qualified borrowers range from Licensed Medical Residents, to fellows or attending physicians, to Doctors of Osteopathic Medicine (DO). Some lenders also include Dentists (DDS/DMD), veterinarians, and other doctors such as Podiatrists and Optometrists. Those with D.P.M. degrees, P.A. (Physician Assistants), PH.D.s, and PSY.Ds may also qualify.
The next important step would be to find a qualified lender to work with. Though a challenge, as not all banks or credit unions offer the doctor mortgage loan program, MD Mortgage Loans can help. They have compiled a list of Physician Mortgage Lenders and Banks by state and qualifications.