Benefits of Obtaining a Mortgage for Doctors
Most medical students leave college with little or no savings at all. Also, they may be having a huge student loan that they are yet to repay. These physicians also may not get paid well because it is their first time employment. When the three aspects are combined, the chances of doctors getting a mortgage are reduced significantly. There are, however, some lending institutions that give mortgages for doctors despite the challenges they have. Below are the reasons why you need to obtain a home loan for doctors.
First, if you are a new physician, you will be able to buy a house sooner. If the mortgage didn’t exist, these physicians would require to pay a down payment which they may not have. Mortgages for doctors are tailored in a unique way so that all physicians can benefit from them. Students loans and other debts aren’t used against the borrower but instead, they will be considered when awarding the loan. The normal mortgages use the applicant’s total debts in determining whether the borrower will be able to repay the home loan. The lenders consider students loans when awarding home loans instead of using the loans to determine the ability of the borrower to repay. You don’t require pay stubs as proof of income because the lenders can accept your employment contract as well.
When compared to the normal home loans, doctor’s mortgages charge a slightly less down payment rate. Unlike the ordinary mortgages which require a high down payment, doctor’s loans charge a down payment of up to ten percent. Unlike the traditional lenders, doctor’s mortgages will not need the borrower to buy private mortgage insurance while applying for a home loan. You can be assured that you will get a high loan limit for home loan that will solve all your challenges with accommodation. You can get a home loan for doctors of up to a tune of two million dollars which is enough money to sort out your accommodation, provided your things are straight.
Whereas traditional lenders would disallow mortgage applications from applicants who have outstanding debts, doctor’s loans can be offered even with those debts. They understand that most medical practitioners have multiple loans but they decide to award them the mortgages anyway. You can even get a loan before you report to your new place of work, provided there is an appointment letter indicating so. Usually, the lenders will allow you to close the mortgage within ninety days before you can report to your new employment. For this reason, you will have enough time to look for a good house, purchase it, and settle it before you can join your new workplace. You will have been spared the struggle and stress of purchasing a house while working.