Generally most banks will only allow you to have one Physician loan at a time.
A physician loan or “doctor loan” is a mortgage specifically for medical professionals that usually doesn't require a down payment. With other loan types, lenders often want borrowers to pay private mortgage insurance (PMI) if they're making a down payment of less than 20%.
For FHA loans, borrowers do not need a minimum or maximum income to qualify. However, they must have two established credit accounts, such as a credit card or car loan. Physician loans will allow doctors to close on their homes before they begin work, provided they have a contract or offer letter.
One way to avoid paying PMI is to make a down payment that is equal to at least one-fifth of the purchase price of the home; in mortgage-speak, the mortgage's loan-to-value (LTV) ratio is 80%. If your new home costs $180,000, for example, you would need to put down at least $36,000 to avoid paying PMI.
Freddie Mac estimates most borrowers will pay $30 to $70 per month in PMI premiums for every $100,000 borrowed. Your credit score and loan-to-value (LTV) ratio have a big influence on your PMI premiums. The higher your credit score, the lower your PMI rate typically is.
@Baxter Richardson yes there are lenders in California that do offer physician loans. Basically the physician loans have a 0-15% downpayment, no prepayment penalties, no mortgage insurance requirement, and a relatively small increase in interest rates over standard mortgage loans.
Besides their dedication and service to humanity, doctors are also recognised by lenders as low-risk borrowers. This makes them eligible to borrow more (up to 100 per cent of the property price from some lenders) without the requirement to pay Lenders Mortgage Insurance (LMI).
Home loans that are designed for dentists most commonly fall under a bank's “doctor mortgage loan” product. Many (but not all) mortgage lenders offer their doctor programs to dentists. You'll want to confirm with individual lenders that dentists are eligible to apply for their “doctor mortgage loans.”
The 36% rule is a good place to startA general rule of thumb to ensure you are not borrowing more than you can realistically afford is to use the 36% rule. This says that housing expenses should not exceed 36% of your gross monthly income. Gross income is what you are paid prior to any deductions.
Qualifying for a Doctor Loan as a Lawyer or PharmacistIf you have a signed contract or way to confirm your employment, you can use this to qualify for a doctor loan. Purchasing a home near your new work is a great idea, and a good way to begin investing in the real estate market.
Physician-Focused LendersEven though some lenders do not offer an explicit physician mortgage, many still recognize the value of doctors as banking customers. Quicken Loans is one of those lenders.
Although it does not have physician-specific terms, Wells Fargo is no stranger to the mortgage industry and has thousands of loan officers with the experience to assist doctors in the mortgage process.
Now, when you apply for a mortgage, the lender will cap the loan-to-income ratio at four-and-a-half times your income. Use our Mortgage calculator, to help you work out how much your monthly payments would be if interest rates rose in the future.
Bank of America's physician mortgage loan program is available to a wide range of medical specialities, regardless of career stage. This is an especially strong option for new doctors who are just entering professional practice.
As a physician, you have more options for a mortgage loan than most people. You will likely be able to secure a mortgage loan without a down payment, and without paying PMI. These are great benefits! Once you determine a monthly payment where you're comfortable, consider also the length of the loan.
| SBI Doctor Loan – Interest Rate & Features – 2021 |
|---|
| Interest Rate | 9.00% onwards |
|---|
| Loan Amount | Min. Rs. 10 lakh & Max. Rs. 5 crore |
| Processing Fee | 50% concessions on card rates |
| Repayment Tenure | From 3 years – 7 years, including 6 months moratorium period |
Apply for Doctor Loan
- Signed Application Form.
- Education Qualification Certificate.
- Identity Proof (PAN)
- Residential Address Proof.
- Latest 6 months salary slip for salaried.
- Last 6 months bank statement.
- Last 2 years ITR.
