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

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

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

  • Posted by Blake Mortage
  • /
  • March 4, 2020

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!