Physician loans are special loans that are created specifically for doctors and dentists. These loans offer great advantages to the doctors and physicians who have spent most of their time and money serving the society in the field of medicine.
Most often, these loans are the only option available for the physicians to make high cost purchases such as a house or a car. Although, the loans are aimed at doctors, sometimes the loans are also available to medicine students and residents.
Features of Physician Loans
- While the loan features vary depending on the lender, credit score of the borrower, and residency, most of the loans are used to finance home purchases.
- The physician home loans are usually up to $750,000 and they don’t require any down payment. On the other hand, the mortgage loans are usually 100% financed and they don’t require the mortgage insurance.
- In addition, the loans have a low EMI and have generous repayment terms. Furthermore, the loans don’t have any hidden charges. The loans don’t have prepayment penalties.
- The loans have a long repayment period (usually 15-30 years).
- Special underwriting services are usually given and no PMI is required.
- The loans also have an adjustable rate of 3/1, 5/1 and 7/1 where the doctors are given up to 30 years to repay the loans.
Who Qualifies For Physician Loans?
- The loans are only available to doctors and dentists. In addition to being a doctor or a dentist, you should also be a U.S citizen or a resident alien.
- Medicine students are also eligible for the loans.
- As a doctor, you should have a credit score of 720 and above.
- Before you are given the loan, you must give your sources of financial income as proof that you are able to repay the loan. You must give you asset information. The asset information includes: the brokerage accounts and the deposit accounts that you have.
- If you are borrowing the money with a partner, you must provide information about your co-borrower.
Benefits of Physician Loans
In addition to the long repayment period and other favorable features, physician loans also have free checking accounts, cashier checks, free loan consultations, and debt consolidation services.
Where to Get Physician Loans
Physician loans are easy to find; you can easily find many companies offering the loans online. You only need to use the common search engines to access these lending companies. The good thing is that you can make an online application without necessarily physically visiting the lender. After your application has been accepted, you need to fill just a few papers and you get your loan in absolutely no time.
Doctors spend huge amounts of money and time in pursuit of serving the crucial role of saving lives. Due to this, they need to be given special recognition. This is why the physician loans were created. Although, there are many lending companies offering these loans, as rule of thumb, you should stick with well known and experienced companies.