Buying a house comes with a unique set of obstacles for physicians who are already strapped with enormous student loan debts. Having significant debts skews risk assessments lenders factor in when deciding if a loan is too risky to underwrite, making it difficult to get approved. Fortunately, there is a specialized type of loan for physicians that provide lenders who are understanding of the high debt to income ratios that accompany this profession.
If you would like to discuss your loans for physician’s options with a qualified broker, the team at POM (Peace of Mind) Capital & Funding Services knows the strict regulations and requirements to help you smoothly secure funding for your business endeavor.
Who Qualifies for a Physician Loan
Despite the name, loans for physicians cover a larger pool of high-income careers that typically accrue large student loan debts. Professions included under the physician loan umbrella are:
- Certified registered nurse anesthetists
- Advanced practice clinicians
Attaching higher interest rates for a physician loan is one of the ways lenders protect themselves against potential risks. Because these careers tend to yield high income potential, lenders are more forgiving when considering the amount of debt, you acquired in order to work in your chosen industry.
Benefits of Securing a Loan for Physicians
There are many benefits of securing a loan for physicians over a traditional mortgage. Lenders tend to overlook the daunting amounts of student debts and focus more on your earning potential. Some of the perks of a physician loan are:
- Little or no down payment needed
- Private mortgage insurance is no required
- Higher loan limits
- Designed to be understanding of excessive student loans
- Can get approved with only a job contract
Unlike traditional loans, you do not need to provide months of employer pay stubs from employers to qualify for a loan for physicians. A signed contract for an upcoming job is typically enough to get approved, even up to 90 days before employment begins. A good credit score of over 720 and as little as a 10 to 20 percent down payment is essential. Some lenders will approve an application with no down payments at all.
Be sure to carefully read through the terms of your physician loan before signing any paperwork. Take an honest look at your circumstances and expected earnings before jumping into such a big investment. Some professionals may find renting a better option if they can’t guarantee to remain in the same area for at least five years. Having the support of a qualified broker during this major life decision is your best bet to find a suitable physician loan that best fits your lifestyle.
We Can Help
At the POM Capital & Funding Services, we can schedule a consultation to learn more about your options and what to expect when acquiring loans for physicians. Coming prepared with the right financial documents and future earning potential will help your broker become familiar with your circumstances to get you the best loan possible.
If you would like to discuss your options for loans for physicians with an experienced broker, call POM Capital & Funding Services at (631) 354-9290 or write to us at [email protected] to schedule a free consultation with our team.
POM Capital & Funding Services is a leading provider of alternative funding solutions for businesses of all types and sizes, offering commercial finance solutions and products to businesses in the Centerport, New York area and throughout the state of New York.