Lenders understand that becoming a physician is a multistage process. The Physician Mortgage Loan Program is designed to help those in the medical field qualify for a mortgage. However, criteria for lending varies depending upon how far along a candidate is in their medical career.
A Licensed Medical Resident with a signed contract for employment can usually qualify including those who are moving from medical school to residency. A physician who has matched with a residency program usually qualifies so they may be able to buy a home before starting their residency.
The first step is to ensure candidates have everything in order to buy a new home including:
A qualifying credit score (for a Resident, that is 680 to 700) and a down payment as well as money for closing costs.
The second step is to start the home search process. Residents can make a list of the areas around their place of employment or consider their willingness to commute to work.
Step three is to choose a lender and get preapproved for a mortgage. Residents looking for a Physician loan should certainly shop around for lenders before choosing one. Research is important. In this way, Residents can also obtain different loan estimates.
Before making an offer, residents should ask their real estate agent to run a comparative market analysis to determine a fair price based on recent sales of similar homes in the area.
The next step is to get a home inspection and appraisal. The home inspection is important, as it will identify areas where repairs or renovations are needed. Additionally, lenders will require the home to be appraised before they agree to release any funds.
Most potential homeowners will go on to purchase homeowners insurance. However, most physician loans do not require qualified borrowers to have PMI. So Residents can skip this step and the added expense that comes with it.
Being a first-time home buyer can be intimidating and residents need to keep in mind whether they will be staying put for a few years.
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 resident.
Each state has their own requirements and locating a qualified lender who works with Residency status is important. Since not all financial institutions offer Physician mortgage loans.
Lenders feel that Residents are a good bet for the future as they see a substantial increase in income as they progress through their career. MD Mortgage Loans can help Residents find potential lenders while also taking into account the pros and cons of the program for each individual.
MD Mortgage Loans have compiled a list of Physician Mortgage Lenders and Banks by both state and qualifications. MD Mortgage Loans can also help narrow it down so potential borrowers find the right fit for their individual needs.