Thursday, 13 December 2018
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This Old House - Do-it-Yourself

Why Do Doctors Increasingly Opt-In For A Physician Mortgage Loan Program?

Written by Posted On Wednesday, 05 December 2018 02:04

The medical field is a challenging one. And as a medical candidate when you are in your training phase, life might appear to be in a state of restricted development. It would seem that when others are making some necessary investments in their life, you are busy completing your medical course. Though this might appear to be your dominant reality, you might have a couple of unavoidable expenses to make as well. And as other candidates are making necessary investments, there’s no need for an aspiring physician, who’ve just finished his/her study to be on the sideline and watch others purchasing a home. Every physician might want to buy their dream house. To attain this dream, today there are advanced physician mortgage loans that are available today to select from.

What are physician mortgage loan programs?

Simply put, the physicians mortgage loan programs are schemes that make available similar loans for doctors and other physicians like a dentist or a general physician. When compared to the traditional loans, the doctor home loans have different terms and conditions. First and foremost, these loans come with lesser limitations. Also, the premise of physician loan is that the lenders usually believe that physicians and doctors are responsible borrowers.

Generally, the medical practitioners and doctors apply for such mortgage programs at the time of their residency. They could also apply when they are about to graduate from their medical school. Based on the procedure to obtain this loan, a quality lender accepts an offer letter from the physician as income proof. If truth be told, this is an exceptional possibility. It is because, the majority of the banks prefer to check the financial track record of their present customer, signing up for a physician mortgage loan program. Furthermore, there are banks and other service providers that will enable you to opt-in for a mortgage program, much before the residency starts in real-time.

What makes a physician mortgage loan program very special?

Many people wonder how a physician mortgage loan program varies from the conventional mortgage or traditional loans. If you also resonate with that question, here are few salient features that add to the difference.

The physician mortgage loan programs:

  • • Don’t require any down payment. Even if there is a down payment, it’s a negligible amount
    • Does not maximize its interest rate on the jumbo loans
    • Don’t need any private mortgage insurance as well
    • Is considered to be very less complicated as compared to a student loan debt
    • Comes with lending depending on the doctor’s formally signed an employment contract.

Understanding the mortgage costs

It is essential to have a clear understanding of the costs that get linked with a physician mortgage loan program. They are as follows:

The private mortgage insurance – The monthly payment generally paid till such time it reaches a 20% equity
The interest expenses – It is dependent on the interest rate, loan repayment term as well as the loan balance
The closing expenses – It refers to the out-of-the-pocket costs, occurring one time during the closing phase. It gets added to the loan balance as an increased rate of interest.

The obvious thing to note about a physician mortgage loan program is that the lenders are ready to reduce their charges, more so when they are aware of their competitiveness. There are times when the clients also have access to attractive discounts. All these aspects make this loan gain prominence amongst others.

Listing Additional Info

  • State: California
  • Address: 1231 Highland Ave., Ste. 106 #247
  • City: Rancho Cucamonga
  • Zipcode: 91739
  • SOLD: no
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