Frequently Asked Questions
Q: What are the benefits of a “Doctor’s Loan?”
A: Doctor Loans typically require Little to No Down Payment with No Mortgage Insurance, although each bank’s program is different. In addition, most of the programs won’t count deferred student loans in their debt-to-income ratio and will allow you to close on your home often 30-90 days in advance of the start of your job.
Q: Who qualifies for the Doctor loan/Physician loan?
A: To see a detailed explanation of who qualifies, please click here. In brief though, while every banks’ program is different, they all are willing to lend to doctors with an MD or DO degree in their residency or fellowship. Most banks are willing to lend to MDs and DOs at any later stage in their career although a few place restrictions on their program and only allow doctors to participate for the first 10 years after the end of their residency or fellowship.
Approximately, two thirds of these programs are also available to Dentists (DDS or DMD), and one third of them include Podiatrists (DPM).
A few of the programs are also now open to the following occupations:
- Optometrists (OD)
- Veterinarians (DVM)
- Chiropractors (DC)
- Pharmacists (PharmD)
- Physician Assistants (PA)
- Nurse Practitioners (DNP, NP)
- Nurses (RN)
- Physical Therapists (DPT, PT)
- Occupational Therapists (MOT)
- And occasionally others in the medical field
Q: Are there any fees associated with using Drmoves.com?
A: The client pays no fees to Drmoves.com. If there are any fees, then the fees will be paid by the bank, real estate company, etc.
Q: Can I refinance with a Doctor loan program?
A: Some doctor loan programs allow refinancing, and some are also available for construction.
Q: Do I have to be a U.S Citizen or Permanent Resident to qualify?
A: It depends on the bank. Some will only allow U.S. Citizens or Permanent Residents to participate, but there are several that will include non-permanent residents. Some of these require an H1 B Visa while others will accept anyone with a legal right to work in the U.S.
Q: If I am still a Medical Student and not near graduation, can I qualify for the doctor loan?
A: You are eligible upon Medical School graduation. You will need to provide your “Match Day” letter assigning you to your Resident program. This letter should include position, start date, and salary. Many banks will allow you to close on your new home up to 90 days (and sometimes even more) prior to starting your new Residency assignment.
Q: Can I get the Doctor loan before I actually start my Residency?
A: Absolutely – You just have to provide your 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.
Q: My student loans are deferred currently, but will the Doctor Loan program allow the future scheduled payments to not be counted in my debt-to-income ratio?
A: Again, this differs with each bank’s program, but typically if your student loans are still in deferment for at least the upcoming 12 months, then most of the doctor loan programs will not count future scheduled payments in your debt-to-income ratio.
Q: How do student loan payments affect practicing Doctors with being approved for the program?
A: Once you are a practicing physician and have started repaying your loans, then banks do calculate your student debt in their debt-to-income ratio calculations. They typically do this in two ways: Either they use 1% of the outstanding balance of your student loans, or they use your standard monthly payment of your income-based repayment plan. Occasionally, they use other “special calculations,” but it’s best to have your mortgage lender explain those to you.
Q: What does my Credit Score need to be for the Doctor Loan?
A: The minimum credit score required for participation in a Doctor Loan program differs with each bank, but they range from 630-720. The credit score required is also often based upon the desired down payment. The more you want to borrow, the higher the score they may require. For those of you interested in statistics, we surveyed 40 different physician loan programs, and the mean minimum credit score required was 693 while the mode was 700.
If your credit score is too low, ask a mortgage officer to do a “Rapid Re-Score.” This may make home ownership available without waiting months for the score to rise.
Q: What are the loan options available for the Doctor Loan?
A: There are many different options, and each bank offers different progams. But you should have no problem finding the type of mortgage that you want since they run the gamut from ARMs that are fixed for 1, 3, 5, 7, 10, or even 15 years to the conventional Fixed Rate Mortgages of 10, 15, 20, 25, or 30 years.
Q: What does Drmoves.com do with my contact information if I ask to be put in touch with a lender?
A: We ask a mortgage officer to contact you. Your contact information goes no further than the individual contact with our selected Banking Officer and remains within our corporate record holdings.
Q: Will my information or email address be shared or sold to other unrelated companies?
A: We do not publish, list, or sell your private information to anyone including the lender you are connected with, and there, your information is kept in the highest of security.