A Doctor Loan or Physician Loan is a mortgage specifically designed with physicians, dentists and other eligible medical professionals in mind. They offer features unique to individuals in the medical profession.
Key advantages of the doctor mortgage loan:
- Low Down Payment: as low as 0% for a down payment
- No Private Mortgage Insurance: this additional payment is not required
- No Pre-Payment Penalty: if you sell your home early there are no penalty fees
- Future Income: ability to closing on your home before you start your new job
- 1099 Income: allowed with guaranteed contract (even future income)
- Reserves: little to no reserves needed
- Gift Funds: allowed from immediate family members to cover closing costs
- Student Loans: special treatment for student loan debt based on your stage
- Higher Loan Limits: Typically, have borrowing limits up to $2,000,000
Because doctors and eligible medical professionals are deemed as being low risk, physician loans tend to have more favorable terms than conventional loans.
