You have your eye on a house for sale, and now you need to figure out how you will finance the home. When it comes to the home buying process, mortgages are an effective way to finance your home.Taking Out a Home Mortgage as a Physician or Dentist
Selecting out a financing plan for your home can be a daunting task. As you begin the search for a mortgage that fits your unique situation, you may start to have many questions. "What type of mortgage should I apply for?" "How much of a down payment will I need to put down on my home?" "If I qualify for a doctor mortgage loan, what will the mortgage rate be?" "Is it only for doctors? Or, is it for dentists too?" These are some common questions that both doctors and dentists alike ask. So, if you feel confused during this process, just know that you are not alone.
Many banks offer a doctor loan program to physicians and dentists regardless if they are in training or in practice. A doctor loan gives physicians the flexibility to buy a home with minimal out-of-pocket expenses, helping physicians make the most of their money.
We often receive questions about the doctor loan program from physicians, so we sat down with Jason Watkins from SunTrust Mortgage, to answer those commonly asked questions. Jason specializes in serving the mortgage financing needs of licensed medical physicians and dentists.
Jason Watkins has helped many people achieve their goal of home-ownership. Whether you are a first-time home-buyer or refinancing an existing loan, Jason has a solid understanding of the local real estate market and what it takes to close your loan with efficiency and expertise. Here are 5 questions answered by Jason Watkins about the doctor mortgage program:
The Physician Loan is a special mortgage loan program available to Medical Doctors (DO/DPM/MD) and Dentists (DDS/DMD). For medical doctors, this program is available during residency, fellowship and post-training. What makes the program special is that it allows for there to be low or no down payment, no mortgage insurance regardless of down payment, and the ability to qualify on future income. The doctor mortgage program is available with competitive rates and various loan terms.
The first step in getting approved for any loan product is to get pre-approved with a loan officer. This enables us to review your credit report including score and credit history. We’ll also look at your current income, employment, and assets to ensure you meet all of the program requirements.
To emphasize an important first step, the best first step is to get a pre-approval and have a discussion with your loan officer. A pre-approval does not cost or obligate you to anything but will be a chance to see if you are eligible to purchase a home OR it will give you time to get on the right path to home-ownership.
It’s never too early to get pre-approved. If you are considering buying a home in the near future, then it’s the right time to get pre-approved. The minimum credit score for our doctor loan program is 660.
Interest rates can vary from one person to another, and rates vary every day until the mortgage is officially locked in.
Credit score can be impacted by many factors including:
Yes, you can as long as you are a fully licensed doctor or dentist. If you are not earning an income, you can still use the doctor program to qualify for a home using your spouse’s income for qualifying.
The short answer to this question is maybe. Before making the jump, talk to a financial planner to see how you can be more equipped to choose the type of lending program that will best suit your needs and financial situation. Schedule a complimentary discovery call with one of our financial planners to start the conversation about whether the doctor mortgage program is right for you.
This blog was originally published on April 8, 2019, and it was updated on September 21, 2020 for accuracy.
The Prosperous Doc podcast producer and Marketing Director of Spaugh Dameron Tenny. Molly is passionate about connecting with people, digital marketing, and serving her community. Reach out to her if you have blog topic or podcast ideas.
For over 50 years, Spaugh Dameron Tenny has provided comprehensive financial planning for physicians and dentists in Charlotte, NC. In addition to providing personalized advice, we walk our clients through their options to help maximize finances and maintain financial security.
Securities, investment advisory and financial planning services offered through qualified Registered Representatives of MML Investors Services, LLC. Member SIPC. Supervisory office: 4350 Congress Street, Suite 300, Charlotte, NC 28209, (704) 557-9600. Spaugh Dameron Tenny is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies.→ Check the background of your financial professional on FINRA'S Broker check