The Doctor Mortgage Loan Program is designed to help those who work in the medical field qualify for a mortgage loan with zero to little money down and no private mortgage insurance (PMI.)
A “qualified borrower” is defined as a Licensed Medical Resident, fellow or attending physician with a signed contract for employment. Additionally, these physician mortgages are designed for medical professionals of all types to benefit from. Pharmacists are also eligible to apply for this particular type of financial product.
Pharmacists spend either 3 or 4 years in school, depending on if they attend year round. On average, the cost of attending a pharmacy school program ranges from $65,000 to $200,000. Recently, ABC News ranked pharmacists in the top 5 to offer the best ROI when it comes to college degrees. Additionally, the American Association of Colleges of Pharmacy (AACP), cite that pharmacists reported having repaid 30 percent of their student loans in under five years.
This makes pharmacists a reliable bet from the viewpoint of a mortgage lender. With lower interest rates, better financing terms, lower (or zero) down payments, and no need for mortgage insurance (PM), pharmacists can also take advantage of physician loans.
Flexible Debt-to-Income (DTI) requirements are especially helpful to pharmacists as medical school student debt can weigh down DTI ratio and make conventional loans harder to come by..
While other low-down payment mortgage programs require expensive PMI in order to protect the lender if a borrower defaults, physician loans save borrowers hundreds of dollars each month by not requiring it..
Because pharmacists have a solid financial reputation in terms of very little defaults and high earning potential, pharmacist mortgage loans allow for the ability to purchase larger or higher priced properties when compared to conventional loans.
Pharmacist loans also offer competitive interest rates. The job security that comes with being a Pharmacist allows for more competitive interest rates for all types of mortgages.
For pharmacists who have recently completed their medical training and/or don’t qualify for a conventional loan, a physician mortgage will allow them to purchase a home with very little money down and only having to prove a short employment history.
Most participating institutions offer loans to physician borrowers with a credit score higher than 700.
Additional advantages of a Physician Home Loan include:
- Fixed rate options
- Up to 100% financing and no monthly mortgage insurance payments
- Employment contracts can be used as evidence of income – especially for a newly hired pharmacist
Each state has their own requirements and locating a qualified lender who works with pharmacists is important. Pharmacist loans are a unique product and not all lenders offer them. MD Mortgage Loan is committed to helping physicians find the best mortgage loan options available. Their comprehensive database represents some of the best lenders in the industry.
MD Mortgage Loans can help pharmacists to find potential lenders while also taking into account the pros and cons of the program for each individual. Sorting through industry-leading competitive rates that fit a variety of financing needs is the first step to finding a program that works for the individual and their specific circumstances.