There are physician loan programs available for doctors with 10 years or less out of residency. The “rules” are:
- 95% up to $850,000
- Higher Maximum Loan Amount $850,000 to $1.5 million
- 10 years or less out of residency
- Types of properties: Single family detached/attached, condos, and PUDs
- Minimum FICO LTV > 90% = 720 LTV ≤ 90% = 700
- Escrow for Taxes & Insurance Required
- Loan Purpose Purchase and No Cashout
- Occupancy Primary Residence Only
- 0 to 5% down depending on the lender
- Eligible Products 15- and 30-year Fixed Rates, 5/1, 7/1, and 10/1 LIBOR ARMs(Fully Amortizing)
- (5% Loan To Value(LTV)/Total Loan to Value (TLTV) reduction for declining markets & 10% for severely declining)
- Lenders want a credit score of 720 or higher.
Benefits of Physician Loan Programs
- Close on your loan early: up to 60-90 days before starting new employment (depending on the lender)
- Employment contract can be used as evidence of income if starting a new job.Medical school loans can often be waived from your debt ratio (if deferred 12 months after closing)
- Medical School loans can be waived from your debt to income ratio if deferred 12 months after closing.
- Gift funds or seller contributions can be used for closing costs.
- Private Mortgage Insurance is not required
Who Qualifies for the Physician Loan Program?
- Licensed Medical Residents, Fellows, Medical Physicians (MD) and Doctor of Osteopathy (DO)
- Dentists (DDS/DMD)
- Some lenders offer Doctor Loans to Podiatrists and Optometrists
Several of the lenders that we work with do these physician loan or doctor loan programs. It’s not something that all banks do. If this looks like something that applies to you, please contact us, Jen and Mark Bowman, Keller Williams on the Water at 941-840-0117 for more information. The nearest hospitals to us here on Anna Maria Island are Blake Medical Center, Manatee Memorial Hospital, Sarasota Memorial Hospital and Doctor’s Hospital of Sarasota.
If you’re a busy doctor looking to buy a home, we can streamline the process for you and make it as stress free as possible. It’s what we do!