January 2020 Posts

January 21, 2020

The name, “Physician Loans” implies that only physicians can apply and use this lending program. While they are primarily designed for podiatrists, optometrists, and physicians, some of the lenders offering this program don’t exclusively cater to just the physicians.

It may be possible to find a physician loan if you’re a lawyer, dentist, pharmacist, or even a professional working in a completely unrelated field. Let’s look at a few of the details and what to expect when it comes to physician loans.

Defining a Physician Loan

Before we go any further, it’s essential to understand what this loan program is and what it provides. Physician loans are designed for those earning a high salary or with the potential of earning a high salary, but with the need to go to school long enough to rack up a significant amount of student loan debt.

Typically, the salary range goes from about $0K to $50K just a few months after graduation. And after residency, salaries can jump to around $260K. Since traditional banks look at student loan debt as a negative, this program was created to give those graduating college with significant student loan debts and guaranteed future high salaries a chance to buy a home.

Physician loans are known as portfolio loans used mainly for medical professionals including:

  • Doctors
  • Podiatrists
  • Optometrists
  • Physician Assistants
  • Veterinarians

While these loans tend to be used by those in the medical field, some banks will allow others to apply.

Who Else Can Use a Physician Loan?

Some banks provide physician loans for dentists, pharmacists, and lawyers. These three professions are common because they do require a large number of student loans for schooling, and most graduates will make a high salary. Not all banks providing physician loans will allow non-medical professionals to apply, but some will.

Characteristics of Physician Loans

The traditional loan process is rather time-consuming and usually requires a larger down payment. This doesn’t work well for physicians or others graduating and looking to buy a house as they step into a profession requiring many hours to be worked every week.

It’s hard enough to find the time to look at homes and hire a good Realtor, let alone fill out loan paperwork. With physician loans, the approval happens quickly, and the process is much faster compared to a conventional loan.

In addition, you will likely get a down payment between 0% and 5% making it much easier to get into a house. Physician loans also don’t require private mortgage insurance, and they don’t factor student loan debt the same way.

Expanded Programs For Other Professions

One of the great benefits of physician loans is the network of Realtors that come along with the mortgages. These Realtors make you a priority, and with the expanded programs working for lawyers, pharmacists, dentists, and other professions, more high salaried individuals with student loan debt can enjoy homeownership.

Finding a home isn’t always an easy process, and the financing comes with plenty of stress. The right Realtor and the right physician loan can make a huge difference.