Frequently Asked Questions
A: The Doctor Loan typically requires no down payment with no private mortgage insurance (PMI). PMI is a type of mortgage insurance you might be required to pay for if you have a conventional loan. PMI typically costs between 0.5% to 1% of the entire loan amount on an annual basis. On a $100,000 doctor’s loan, a doctor could be saving as much as $1,000 a year, or $83.33 per month – assuming a 1% PMI fee. In addition, the banks usually don’t count deferred student loans when qualifying the physician for a doctor’s loan. This means a physician is more likely to qualify for a loan and for a larger amount.
A:This can differ with each bank but generally
- 4th year Medical School Graduates
- Residents (MD)
- Fellows (MD)
- Attending (MD)
- Physicians and Doctors (MD) – regardless of tenure
- Doctors of Ophthalmology (MD)
- Doctors of Podiatry Medicine (DPM)
- Doctor of Osteopathy (DO)
- Doctors of Dental Science (DDS)
- Doctors of Dental Medicine (DMD)
A: Some doctor loan programs allow refinancing.
A: Most doctor’s loans require a person to be a US citizen or permanent resident.
A: You are eligible upon medical school graduation. You will need to provide your “Match Day” letter assigning you to your residency program. This letter should include position, start date, and salary. Most banks will allow you to close on a new home up to 90 days prior to starting your new residency.
A: A physician would have to provide their Match Day letter and later your fully executed Residency contract before you close on your new home. Since you will usually receive your employment contract 3-4 weeks after Match Day there is rarely a timing problem with closing on your new home within a reasonable amount of time after graduation. Most banks will allow you to close 30-90 days prior to your start date.
It is very important that you have enough reserve funds to cover the number of months between closing the mortgage and your Residency start date. Many times you will need money to cover your closing costs.
A: Most banks will classify you as a Resident or Fellow. If your credit report states “student loan – deferred payment” or “student loan – forbearance, ” then your student loan debt will not be counted against you..
A: Regardless of the type of mortgage program you are eligible for, your student loans in this case must be calculated into your debt ratio because you have completed training.
A: Most banks require at least a 680, and based upon desired down payment higher scores may be required. If your credit score is too low, then you can ask a mortgage officer to do a “Rapid Re-Score”. This may make home ownership available without waiting months for the score to rise.
A: There are many different options and each bank offers different progams