What Are Physician Loans?

Physician Loans, also known as Doctor Loans, are mortgage loans, for specific types of residential properties, made especially for those in the medical field; particularly for those with MD, DO, DDS, DMD, or DPM designations.  They might also include Veterinarians, Podiatrists, and Optometrists.

Essentially, banks that specialize in doctor loans do so because, by and large, doctors pose low risk, high upside and high referral rates. Doctors have a long-term high income expectancy, low default rates, and offer a lot of referral business from their coworkers and peers. As a result, they offer huge incentives for practicing physicians, residency doctors, and (or) 4th year residency matches.

Each bank does business differently so there might be different terms based on which bank you go to, but I would recommend shopping around to see where you might get the best deals and rates from. By and large, most physician loans do not require any money down for up to $750,000. For loans up to $1,000,000 there is a low down payment requirement inasmuch as 5%. Some banks go over the $1,000,000 with a 89.99% loan cap. Most, if not all, physician loans do not require PMI (private mortgage insurance) and most likely do have some credit score requirements.

Additionally, there are flexibility with different types of loans, either ARMs (Adjustable Rate Mortgages) or Fixed Rates. Some banks might also offer incentives such as low to no application or origination fees, no prepayment penalties, hidden charges or credit life insurance requirements.

Talk to a banking or mortgage specialist to learn more about these amazing loans and how they might benefit you. Make sure that they offer loans for your line of work as a specialist in a field of medicine, and don't forget to dot your Is and cross your Ts with the pros and cons of each bank.

Here is a great resource for you to find banks that specialize in physican loans in your respective state: https://www.doctorloanprograms.com/list-of-physician-lenders-2 

Thanks for reading, and if you have any questions about buying luxury condos in Queens, Long Island, Long Island City, or Manhattan, do not hesitate to have a lunch with me to talk about what you need.

Some resources for you to read:
https://financialresidency.com/physician-mortgage-loans
https://www.zillow.com/mortgage-learning/physician-loans
What Are Physician Loans? What Are Physician Loans? Reviewed by Alex Sung on March 07, 2020 Rating: 5

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