Conventional Mortgage VS Physician Mortgage

Posted on Aug 22, 2018 | New Home Loans

What’s the difference between a Conventional Mortgage Loan and Our Physician Home Loan?

One of the questions we receive all the time from our clients is, what is the difference between a physician home loan and a conventional mortgage? There’s a couple of key differences and advantages to the physician home loan.

The first is going to be that we can close up to 90 days before the start of your new employment contract. So, if you’re relocating across the country, you wanna move your family in before you start your employment, we can do that up to 90 days before the start of your employment contract with the physician home loan. Most conventional loans will require that you have one paycheck stub or maybe even two paycheck stubs before you can close.

Now another major advantage is the way that we look at student loans. Most conventional loans regardless of the payment status of your student loans will default to a 1% of the outstanding balance as a monthly payment. So if you have $100,000.00 in student loans, that’s a thousand dollars a month. Well that’s gonna make it really difficult for residents or fellows or folks with really high student loans to qualify for mortgages. We look at it completely different in our physician home loans. We will allow you to qualify based off an income driven repayment, even an estimated income driven repayment. So even if you haven’t entered income driven repayment yet, we can still get you in based on a future estimated payment. We also can exclude that from your debt to income ratios in some instances completely if the deferment is greater than 12 months from the day that you close.

Physician loans have no monthly mortgage insurances in most instances. That can save you thousands, even tens of thousands over the lifetime of your loan, and higher loan amounts are possible with as little as 5% down. In fact, we can do 5% down up to a million dollars and 10% down up to a million five, no mortgage insurance, really fantastic rates and the programs are a breeze to underwrite because we deal almost exclusively with physicians from all across the country. Thanks so much for tuning in and if you have additional questions, don’t hesitate to request a consultation. We’re here and we’d absolutely love to hear from you.