Who can apply for a Physician Loan?

The special loan is offered to graduating medical students, residents and practicing doctors. You either need to be a U.S. citizen, have an H1B VISA or be a permanent resident alien.

My bank says they offer a Physician Loan. Is it the same?

Depends. Due the Physician Loan’s unique underwriting and the fact that the loan must be held in the portfolio by the lender until it is paid off, just a handful of institutions in the U.S. can offer a true Physician Loan. Many companies market and promote loans for doctors, but these are typically re-branded FHA loans or modified Fannie Mae loans and not true Physician Loans. unsuspecting doctors can run into issues and challenges later in the process, jeopardizing the approval with a loan that is not the correct fit.

What are the benefits of a Physician Loan?

Two of the main benefits with a true Physician Loan:

  1. Less down payment requirments
  2. No mortgage insurance is needed.

Additionally, underwriting terms in the loan make it easier for doctors. For example, a doctor is allowed to close on a loan up to 60 days before the new job begins. Most other loans require you to have started your job so you can show at least one paycheck before being allowed to purchase the home.

Is the Physician Loan a conforming, government or conventional loan?

The physician loan is known as a portfolio loan and would fall under conventional financing. However, no secondary market exists for a physician loan (meaning the lender cannot sell the loan to another bank right after closing, as is often done with conforming loans.) The physician loan is not considered a conforming loan or a government loan.

How can you offer a loan with such good terms?

One word: statistics. It is statistically proven that doctors who have excellent credit are unlikely to default on a mortgage. While offering a loan with little to no money down, no PMI, higher debt ratios and low rates may seem to most lenders as a bad investment, we know differently. In fact, we only display loan offers to doctors, and not the general public.

What does it cost to get pre-qualified?

Nothing. It’s free to pre-quality with Physician Loans. In fact, you should never pay a penny to any company to get pre-qualified. Red flags should be immediately raised if a Loan Officer or mortgage company asks you for up-front money. Your best move? Run, don’t just walk away. Once pre-qualified, you should never feel pressured or under any obligation to continue a transaction with a Loan Officer once pre-qualified. You can walk away at any time for any reason.

What is a Physician Loan?

A physician loan is a special home mortgage with attractive terms and unique qualities not found with other traditional loans. It is only available to doctors and dentists.

What is the minimum credit score for a physician loan?

Enstimated closing costs include lender fees, attorney feeds, title insurance, taxes, etc. Many of these fees vary from state

What are the estimated closing costs?

Estimated closing costs include lender fees, attorney fees, title insurance, taxes etc. Many of these fees vary from state to state. The average of all closing costs is three percent. In some states less (specifically the south west), and in some states fees are more. For example, Pennsylvania has a high real estate tax when purchasing a home, so plan for at least four percent. Based on the city in which you are buying your Loan Officer will provide you with a general estimate.

What is the difference between getting Pre-Qualified and Pre-Approved?

Both terms are used in the industry, but it depends if you refer to a loan that is manually underwritten (by a live person) or one that is run through automated underwriting (by a computer). A true pre-approval means your file has been run through underwriting, live or automated. Most loans in the U.S. are run through a computer-automated underwriting process that offers pre-approvals. However, those systems are not designed for a portfolio physician loan. Our loans are all manually underwritten but to save you time, we don’t require the submittal of all paperwork upfront that can delay underwriting.

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