Physician Loans: A Money-Saving Instrument For Doctors And Medical Students

Doctors are among the society members who help others in matter of life and death, as police officers and firefighters do. Unlike the latter, they spend tremendous amount of time and money to get the privilege to protect life and health of the citizens. To assist doctors, lenders have developed specific loans called physician loans or doctor loans. As doctors accumulate large amounts of student debt while going through all the training that they keep paying up until mid-careers doctor loans are often the only means of financing a home or a car purchase. While most doctor loans are available to those who are already entitled to be called a doctor, some are available to students and residents in doctoral programs in medical schools.Doctor Loans Have Competitive Terms When Compared With Traditional LoansPhysician loans have great advantages once compared to generic loans and mortgages. The most beneficial ones include the following:* Zero down payment option – no need to spend out-of-pocket cash when purchasing a home* No PMI requirement, commonly needed for all mortgages with loan-to-equity ratio of 80% or above* Relaxed credit rating and DTI requirements* Adjustable rate option* Low EMISince doctor loans are most advantageous when used to purchase homes, most doctors use them in place of conventional mortgages. While physician loan underwriting and granting criteria may differ state to state, most of them feature high amounts up to $750,000 with low interest rates and competitive terms. When compared side by side with regular mortgage products, doctor loans are much more beneficial and allow for greater money saving.Loan Packages Are Great, Featuring Easy ApprovalsBesides the fact that physician loans are only granted to doctors or students enrolled in doctoral medical degree programs, they do have some other basic requirements. While they commonly feature a credit score requirement of 720 or above on the FICO scale, some exceptions are possible for doctors with lower credit scores. Doctor loans are only granted to legal residents of U.S., i.e. American citizens or resident aliens.Doctor loans are similar to regular mortgages, as they may come with both fixed and adjustable rates. While 360-month fixed rate loans are the most popular option among doctors, physician loans may also have 15, 20, and 25 year repayment terms. Adjustable rate doctor loans are commonly 3/1, 5/1, and 7/1 with 30 years to repay. As mentioned earlier, no down payment and PMI is required for most applicants. In addition to great terms, doctor loans come packaged with debt consolidation options, free financial consultations, and special underwriting services.Physician Loans Are Easy To FindFinding physician loans is extremely simple, as lenders widely advertise them online. Doctors have a benefit of making an easy online application that is processed by lenders in virtually no time. Upon approval, a minimal amount of paperwork is required. When choosing the lender it is better to stick with well-known and trusted companies, such as Carteret Mortgage and Doctor Loan USA, as they offer better terms, solid customer service, and a wide array of additional features.