Buying a home can be difficult and expensive. However, one way to make it easier, if you're in the medical profession, is to opt for a doctor loan. These loans, also known as physician loans, are typically offered to residents, current doctors, and a wide range of other medical professionals as well.
If you find that you are eligible for a doctor loan, you will be glad to know that there are many benefits that go along with these loans.
You Can Skip Out on Principal Mortgage Insurance
One of the best things about most doctor loans is that they do not require you to have principal mortgage insurance. This is a type of insurance that protects the bank if you fail to make good on your promise of payment.
By not having to pay for this insurance, you will save a lot of money in the process, as well as a lot of hassle. Your profession qualifies you as a trustworthy person with a stable job, which is why you are not required to pay for this costly insurance.
You Can Enjoy a Minimal Down Payment, or Even No Down Payment
When buying a home, one of the hardest parts is making the down payment. However, with doctor loans, down payment requirements are typically a lot less stringent than they are with other types of loans.
A lot of the time, a doctor loan will only require a 5% down payment, which is very small. However, you can sometimes qualify for an even lower down payment. Even better yet, some doctor loans don't actually require any down payment.
If you want to buy a home but don't have a huge down payment saved up, a doctor loan may be just what you're looking for.
Your Student Loans Don't Come into Play
Most people within the medical field have a large amount of student loans. Because this is so common, doctor loans do not take these student loans into consideration during the underwriting process.
This means that your loans won't hurt you or hinder you from qualifying for a home or a mortgage rate that works for you. This truly is a loan made for doctors and that works with them and their lives in every way possible.
With so many benefits to a doctor loan, who wouldn't want to take advantage of this great option? As long as you are eligible, it is certainly worth looking into.