Doctor Mortgage Loan: How to Buy a Million-Dollar Home without Enough Down Payment

After so many sleepless nights, tiring days, and a plethora of hard work, you’ve finally become a doctor – a neurologist to be specific…

After so many sleepless nights, tiring days, and a plethora of hard work, you’ve finally become a doctor – a neurologist to be specific.

Now, you can finally fulfill your dream of buying that million-dollar property for you and your family! You’ve seen so many physicians who went on to earn a six-figure salary right away, and then in just a few months, they were living in a lavish property.

You can’t wait to see your life taking the same turn, can you?

Well, first of all, congratulations!

Secondly, as much as we hate to say this, here’s a reality check:

Having taken out all of the unsubsidized loans you qualified for as a medical student, you have a little bit of money left. Besides not having a down payment, you also have a huge student loan burden. Even if you have a contract, you may not have proof of your earnings, which makes it even more challenging to secure a conventional mortgage.

So, does it mean you have to delay your dream of buying your own house?

No! Doctor mortgage loan or physician mortgage loan is here to your rescue!

The best way to go about this phase is by focusing on paying off your student debt and starting with a small doctor mortgage loan. It will ensure that you don’t have any burden of debt on your shoulders later on in life.

Consult with Professionals

To eliminate stress, frustration, and risks from the equation when it comes to managing the burden of debt, you should consider working with a Certified Financial Planner and a Certified Mortgage Consultant. Not only will they guide you pay off your student debt fast but also assist you in getting a doctor home loan to purchase a property. The financial professional will thoroughly evaluate your current financial situation and come up with a repayment plan that works best for you.

Always remember, the faster and the more efficient you’re in paying down your student loan, the more secure your financial future will be in the long-term.

The next step is to find funding for your new home. That’s where a doctor mortgage loan comes in!

One of the main benefits of a doctor mortgage loan is that you can put less than 20% down and still avoid Private Mortgage Insurance (PMI).

This loan allows doctors to buy a home sooner than they otherwise would. It is an excellent option for doctors who are in a long-term professional situation and have to pay student loans.

The bank knows that they’re lending money to a high-earning professional who isn’t likely to default on the loan. Moreover, the bank gets an opportunity to build long-term relationships with physicians who may like to use the same bank for their savings, HELOCs, investing, insurance, and real estate needs as well as for future mortgages.

Features of a Doctor Mortgage Loan

The stellar features of a doctor mortgage loan are:

No PMI even with a down payment of 0-10%
A contract is accepted when you don’t have a paystub as proof of your future earnings, meaning it’ll close before you even start working
Special treatment for student loans; only the required payments are taken into consideration

Apart from this, below are some additional features and requirements of doctor mortgage loans.

The rate and fees are usually higher than that of a conventional mortgage loan
May require the physician to open an account in the bank that’s offering the mortgage
Might be restricted from condos but in general, these loans can be used for any types of homes
The rate remains competitive whether the loan amount is higher or lower than the ‘jumbo loan’ depending on a specific area
Some programs may allow doctors to use gift money for a down payment for closing costs or required reserves
Requires cash reserves equal to principal interest, taxes, and insurance, a good credit score, and a loan payment to income ratio below 38%

Where Can You Get a Doctor Mortgage Loan?

Many banks and independent brokers offer doctor mortgage loans.

Blake Mortgage will be happy to assist you in finding the best option for you. You’ve worked so hard to reach where you’re today – you deserve to buy that million-dollar property that you’ve always dreamt of living in!

Get a Home Improvement Loan

Are you ready to take on a home renovation project but don’t have enough savings…

Are you ready to take on a home renovation project but don’t have enough savings?

A home renovation loan will get you the funds to give your kitchen an ultra-modern makeover or finally get done with your unfinished basement, your finances shouldn’t get in the way!

It’d take you years to save the cash needed to carry out the remodeling project you have in mind.

This is exactly where a home renovation loan comes in.

Here are a few things to consider when deciding if it’s the best option for you.

Choose the Best Option

Out of a range of options available, you should choose a home renovation loan that aligns with your renovation needs and financial status.

Typically, if your renovation project falls into the mid-range size category, it’ll require approximately $15,000-$50,000. An unsecured or home improvement loan will be your best bet in such a case!

They are not only easy to apply for but also don’t have any collateral requirements. However, their interest rates are likely to be higher than Home Equity Loans or Home Equity Line of Credit.

Know the Difference between a Home Equity Loan and a Home Equity Line of Credit

With a Home Equity Loan, you can receive funds all at once.

On the contrary, a Home Equity Line of Credit will allow you to withdraw money as needed. This may be a better option when your home renovation project falls toward the higher end of the mid-range size.

To decide which option will suit your project’s needs best, you should weigh the cost of financing and collateral risks against urgency and the timeline of the project.

Be Informed

While the Home Equity Line of Credit is an adjustable-rate interest loan, you must know that some lenders offer an attractive promotional rate for a limited time period. This often means that the value offered is lower than a Home Equity Loan.

First Mortgage Cash-out Refinancing

Another option is to refinance your mortgage and cash it out for a home renovation loan.

However, it’s important to note that the closing costs may be significantly higher than those offered by home equity products. Hence, you must have an estimate of the cost of your home improvement project as well as the time it’ll take to repay the amount.

Home equity products usually help save money on short-duration projects as compared to a first mortgage cash-out. A Scottsdale refinance mortgage specialist may help you make the right decision.

Additional Tip

You should always invest in home improvements that will boost the value of your property. It’s best to do some research on which upgrades and renovations will boost property value in your neighborhood and never invest in something that is beyond the scope of the comparable market.

Now, we understand that choosing the best option for a home renovation loan may be overwhelming and confusing. It’s always best to consult with an expert regarding Scottsdale home loans to ensure you make a decision that’s profitable for you in the long run.

Our experts will be happy to assist you in finding the best mortgage option for your home improvement project. It’s certainly a milestone that requires careful investment – allow our specialists to eliminate stress, frustration, and risks out of the equation for a pleasant experience! Contact our experts today!

Mortgage Myths for Home Buyers

Entering the housing market as a newbie can be intimidating. Even more so when you hear rumors about how “difficult” or “expensive,” it is. But don’t believe it! As the experts in first-time home loans…

Entering the housing market as a newbie can be intimidating. Even more so when you hear rumors about how “difficult” or “expensive” it is. But don’t believe it! As the experts in first-time home loans, we have all the answers and resources to make your home purchase happen with ease.

Find out the truth about buying your first home, and for personalized answers, contact us!

Myth #1:

You need a 20% downpayment

While a 20% down payment means you won’t pay private mortgage insurance (PMI), you can buy a home with much less down. In fact, there are loan programs that require as little as 3% down. Are you a veteran, currently enlisted, or a spouse of a member of the armed forces? Then you may qualify for zero down!

20% down has its perks, such as no PMI and building equity a lot sooner. But that doesn’t mean you MUST have 20% now to buy a home. When it comes to how much you can afford to pay every month, an FHA loan with 3% may be the most affordable option.

Mortgage Myth #2:

You won’t qualify for a home loan if you have student loans

Got student debt! So do most borrowers! Student debt and credit card debt are different “in the eyes of lenders.” So even if you have substantial student debt, buying your first home is still very much possible.

Mortgage Myth #3:

Avoid adjustable-rate mortgages like the plague

The 2008 housing crisis is still fresh on many buyers’ minds, and this may make you wary of adjustable-rate mortgages (ARMs). But you shouldn’t be! The bust was more of an issue of too-lax qualifying standards and less about the loan program itself.

ARM loans are an attractive option because of the low fixed interest rate it offers for the first few years. An ARM is a great option if you plan on refinancing or selling within 10 years. In fact, it could potentially save you thousands.

Mortgage Myth #4:

You won’t qualify for any government home loan program

Government-sponsored loans from Fannie Mae and Freddie Mac offer numerous affordable lending options. Eligibility is much easier than other loan programs and could be based on the location of the home, your income, your military status, and even your first-time homebuyer status!

Curious as to which government loan you qualify for? Contact us today to get started!

Mortgage Myth #5:

Your pre-approval can be used on ANY home

The property itself may impact how much you’ll ultimately be able to borrow, especially when it comes to the final cost. So even if you were approved for a specific amount, your pre-approval might not work in that particular property. This is most often the case when it comes to properties like condos and townhomes that may have higher final costs due to property tax rates and homeowners association fees.

Mortgage Myth #6:

You don’t need a real estate agent

Searching home listings via the internet is easy, but presenting you with a list of homes for sale isn’t the only thing a real estate agent does! They work as your advocate. They know the housing market well, know all the right questions to ask, negotiate on your behalf, and make sure that you are absolutely satisfied with your new home purchase.

Whether you’re a first-time buyer or an experienced “flipper,” real estate agents offer an invaluable service in the homebuying journey.

So what’s the truth about purchasing a home as a first-time buyer? It’s easier than you think! Contact us today to get matched with a home loan program that fits your budget and lifestyle. For the fastest response, use our contact form located on our site or give us a call. We look forward to serving your mortgage needs.

10 Reasons a VA Loan is Right for Your Next Home Purchase

If you are a former or active duty service member looking for a low-stress, low-cost mortgage when buying a home or refinancing, Blake Mortgage, is happy to walk you through the VA loan…

If you are a former or active duty service member looking for a low-stress, low-cost mortgage when buying a home or refinancing, Blake Mortgage, is happy to walk you through the VA loan process to get you the best rate and deal. Contact Blake Mortgage today to learn more about this incredible home loan benefit.

We help Military Families

At Blake Mortgage we are thrilled when we can help military families and veterans qualify for a VA loan because of the many advantages this loan program offers over other mortgage options. It’s our honor to assist those who have bravely served our country to save money on their home mortgage.

Here are the top 10 reasons to consider a VA loan for your home purchase, plus 2 refinancing benefits:

No Down Payment Required

Unlike other borrowing options, in most cases, a VA loan does not require a down payment. Therefore, you can free up your cash to use for other items or move in without saving for a down payment which can be an obstacle to homeownership for many people.

Lower Interest Rates

VA loans offer consistently lower rates than traditional bank financing loans because the VA home loan program is federally backed by the U.S. Department of Veteran Affairs (VA).

Easy to Qualify

The good news is to qualify for a VA loan, credit and income requirements are much more lenient than conventional loans. You also don’t have to be a first-time buyer to qualify.

No PMI Payments

Private mortgage insurance, or PMI as it’s commonly known, is required for most types of loans when the buyer does not have 20% down. The PMI protects the lender should one not be able to make a payment on their loan. So not only do you not need a down payment for a loan, you do not need coverage for not having 20% down. Avoiding PMI is a great benefit it can save you anywhere from .5 to 2% of your original loan amount a year.

Federally Guaranteed

Because the VA guarantees the loan, lenders are willing to offer more favorable terms than a conventional home loan.

Communities are Vetted

The Veteran Affairs Department will even go as far as vetting communities before a buyer moves in so that the community is suitable for servicemen and women with disabilities.

Reduced Closing Costs

A VA loan may also have reduced or no closing costs.

No Prepayment Penalties

Should you choose to make extra payments to reduce your principal balance or pay off your loan early, you will not pay any extra fees or pay a prepayment penalty.

Default Protection

The VA provides insurance to lenders in case you cannot make a payment on a loan. Additionally, there are services that may be offered to veterans in danger of defaulting on their loans.

Available Across the United States

No matter where you live in the U.S., you can access a VA loan by contacting a VA-approved lender.

VA Loans are not just for new homes but can also save money when refinancing.

Interest Rate Reduction Refinance Loan

An interest rate reduction refinance loan (IRRRL) is an excellent tool for veterans to refinance to lower their monthly mortgage payments with a reduced interest rate. Blake Mortgage can investigate whether we can get you a rate lower than the one you currently have. What is great is you may not need an appraisal or credit underwriting to apply for an IRRRL. It’s also possible to refinance without having to bring any money out of pocket to closing.

Cash-Out Refinance Loan

Need cash from your house? While it’s not possible to get money out from an IRRRL, a VA-backed cash-out refinance loan allows you to take cash out of your home equity. Additionally, it gives you the flexibility to refinance a non-VA loan into a VA-backed loan.

Who is Eligible?

Let us at Blake Mortgage help determine your VA loan eligibility. Or you can get your VA Certificate of Eligibility (COE) here.

VA home loans are generally available to those who have their Form DD214 and have:

Served more than 180 days during peacetime OR

Served 90 consecutive days of active service days during wartime OR

Are active members of the National Guard for at least 6 years OR

Have served in the Gulf War for 24 months

Are surviving spouses of servicemen either killed or missing in action or due to a service-connected disability

Get Started Now

Blake Mortgage offers VA-backed loans through various lenders and can walk you through the process. To see what a monthly payment looks like or to apply for a VA loan, schedule your free one-hour consultation with Harry Panosian, Certified Mortgage Consultant and Certified Financial Planner.

About Blake Mortgage

Blake Mortgage is a residential and commercial mortgage firm based in Scottsdale, Arizona that has served the Phoenix Metropolitan market since 2002. We offer customized mortgage solutions to our clients. Our strength lies in our detailed, personalized, and client-focused approach. Blake Mortgage embraces the core values set forth by the company’s founder, Harry Blake Panosian, and approaches every client and transaction with high standards of professionalism, loyalty, and integrity. We work diligently with our clients and value constant communication with the client as well as their realtor. Blake Mortgage abides by the code of ethics of the National Association of Mortgage Brokers and is transparent in all of its operations.

Photo Credit: Frank McKenna/ blog.frankiefoto.com

Category: Mortgage Tips