Doctors have it all – A stable job, a great life, an impressive bank balance, and a stable future. Don't they? Well, not quite! In the US, it can take upwards of $250,000 to complete med school. Several students work part-time jobs and full-time jobs before joining the medical school to save up for tuition. Most doctors graduate with massive debt and no stable practice. They have to build their reputation from scratch before they can make thousands of dollars per month from private practice. In short, becoming a doctor is not as easy as it seems from a distance. Physicians have to face more career challenges than the average professor, researcher, scientist, and artist.

How does the financial life of a doctor really look like?

To make their daily struggles a little easy, physician home loans and mortgage loans exist. These are specialised loans for the medical professionals, who would like to buy a roof over their heads after they graduate. By the time people graduate from medical school, most of them have a family, and they need a decent home in a safe neighbourhood. These are the demands of their professional lives as well as the necessities of their families. As a physician, you might be sceptical of these loans since you have not heard of them before. Even if you know of them, you might not have researched physician mortgage loans previously. Since you are already comfortable with paying more than other citizens for taxes and student loans, you might wonder if a tailored credit for doctors also needs you to pay more than the common folk. 

Why are physician home mortgage loans the best options for doctors?

The physician mortgage loans provide the doctors with easy payback options, amicable interest rates, and easy-to-qualify criteria. Here are the few ways in which a specialised home loan can save you a fortune –
  1. They demand nominal down payments that range between 0% and 5%.
  2. These loans do not demand private mortgage insurance (PMI) although the down payment can be less than 20%.
  3. The lending parties do not include the outstanding student loans in the debt-to-earnings ratio of the applicant physician. 

Contracts are valid evidence for all future earnings. Pay stubs are proof enough for the banks to sanction the amount.

There is no catch. The interest rates for physician home loans are always higher than regular home loans. The interest rate varies by a flat 1% or so. Most doctors do not mind that since it is not a secret and it is more of a convenience fee for bypassing the stringent qualifying criteria the regular home loans in the market have. 

How are physician loans in reality?

Banks usually underwrite these loans themselves, and they do not sell them to other parties, who, in turn, sell them as securities on Wall Street. Therefore, the terms and conditions are a lot more flexible than the standard loans. These are unique loans that every physician should try before buying their dream home.