Physician Mortgage Loans - The Pros and Cons

If you are thinking about physician mortgage loans, you will want to read this article. Specifically, we're going to talk about how these types of loans can help you pay your medical bills, and why you may qualify. After reading this article, you should be able to decide if physician mortgage loans are right for you. You'll also have an idea of which type of lender you'd like to use.

A physician mortgage loan may save you cash through lower interest rates and loan fees. Or, it may make it much easier to qualify for a mortgage unsecured loan with more manageable student debt and interest rates. Some physicians will do better with a specially tailored physician mortgage loans, while others might find that their best bet is a conventional loan method. Whichever method you prefer, you should take the time to educate yourself about the different payment options you have. A good starting point is the website of the Federal Housing Administration, which offers a variety of tools to help you learn more about FHA, VA, and conventional loans.

One of the primary benefits of getting a physician mortgage from the government is that you get a lower interest rate on the money you borrow. This can make your monthly payments much easier to manage, as well as providing you with much easier monthly income. On the flip side, remember that this option does require a lot of paperwork, so if you aren't very computer savvy, you may want to consider getting a conventional loan instead. Otherwise, you may end up paying too much in penalties for not having a good handle on your finances already.

There are a number of advantages associated with these physician loans. One is that they do not require PMI, which is just an insurance premium attached to the financing of the loan. Also, if you're purchasing your first-time home, the financing option is particularly advantageous since it provides you with the opportunity to come up with down payment money and purchase a property all at once. The down payment will reduce your overall cost of purchasing the home, which is a significant benefit, especially for first-time buyers.

While these physician mortgage loans provide a number of perks, there are some disadvantages associated with them as well. One of them is that the interest rates are often quite high, which makes these loans a risky investment for the typical consumer. Keep in mind, as a doctor you deal with patients every day, and this means that you will be working with these people for quite a long time. For this reason alone, you need to have a strong credit rating. Another disadvantage is that you will not be able to take advantage of any refinancing opportunities that conventional loans offer. You must remain by your current employment unless you plan to relocate within the next 12 months, at which point you can apply for an open enrollment year fixed mortgage.

Physician mortgages are great loans if you are a physician with very good health who purchases your own home, but keep in mind that this type of financing is not for everyone. Most lenders will require proof of residency, so you must make sure that you have moved in the past two years, or at least for the past two years in which you have been employed. Also, since these lenders have such high requirements, they may have a lot of difficulty in approving these types of loans, and they do charge very high interest rates. But if you can qualify, they could be the perfect choice for you and your family.