Doctor's Loans For Edina Medical Professionals
So, you made it through Match Day and you won a residency slot – CONGRATULATIONS!
While this next phase of your education will be far more intense and rigorous, you are entering the working world saddled with debt and little to no income to show for the past almost half-decade. You’ll be working a week that is twice as long as most employees yet earning the same amount of money, or less.
Where you differ from other employees, however, is that you have potential, kid.
This is important if you hope to buy a house. Your earning potential just may be your ticket to homeownership. Lenders know that a physician’s risk of defaulting on a home loan is just 0.2 percent, much lower than most borrowers. You are, therefore, an excellent credit risk.
This is why many lenders now offer a special product just for medical professionals.
What are the Benefits of a Doctor's Loan?
Sometimes called the “doctor loan,” it will allow you to:
- Purchase a home with only 10 percent down. Some programs have no down payment requirement.
- Obtain a loan up to $2 million.
- Despite the high loan-to-value ratio, there is no PMI requirement.
- These loans are available to medical professionals with a FICO score as low as 700.
Programs vary by lender. Some are open to those that are set to begin their new residency within 90 days of the closing date or those scheduled to complete their residency or fellowship and are under contract to work within 90 days of closing.
Now, these loans aren’t restricted to residents. Established physicians, dentists and veterinarians may also qualify.
Whether you are an established medical professional or you’re fresh out of your residency, if you are planning on purchasing an Edina home, you owe it to yourself to check out the doctor loan program.
For more information, contact the Kris Lindahl Team with RE/MAX Results.