Posts made in February 2017

In What Circumstances Could a Medical Student Qualify for a Physician Home Loan?

doctors

Physicians who want to own a home can benefit from the mortgages offered exclusively to medical professionals. With low interest rates and low down payments — sometimes even zero dollar down payments — these loans are a boon for anyone struggling with medical school loans on top of all of her other bills shortly after becoming a doctor. As a medical student, you might want to get a head start on your new life and buy a house or condo; however, there are only a few circumstances in which you’d yet to qualify.

As an M4 Student With Residency Contract

M4 students in their fourth year of medical school can qualify for physician home loans if they have a signed residency contract in hand — these are typically available three to four weeks after Match Day (most often mid-March). You will also need to have saved enough to cover the payments necessary before you begin drawing your residency salary, as you may be required to show proof of funds.

As a Resident

M4 and M5 resident students qualify for most physician mortgages. However, consider the fact that a sizable number of residency students go on to accept permanent assignments at other facilities, sometimes even in other states. Buying instead of renting during this time means you’ll have to sell and buy again once you move; still, if the housing market is good, you won’t have a difficult time selling the property and you’ll get all or even more than your investment back.

Fellows

Medical fellows also qualify for physician loans in most cases. Because you’re drawing a steady salary, you’ll be able to demonstrate a long-term ability to meet your payments. Plus, many fellows go on to practice where they complete their fellowship, so you’ll be in a good position to buy.

If unsure whether or not you qualify for a physician mortgage, please contact Physician Mortgage Specialists at (800) 667-9516. If you don’t yet qualify, you’re likely to qualify soon, once you start practicing, and we’re here to help you pinpoint the perfect time to apply. If you can’t wait to buy a house, it’s possible to refinance at a later time once you’ve begun practicing as well.

Should You Pay Off Med School Debt Before Buying a Home?

doctors

Whenever you get a paycheck, it seems like most of that check goes straight to bills — including that large, seemingly insurmountable bill that people outside of the medical profession don’t often have: the large medical school loan.

If you only pay the minimum amount each month, it’ll take you years, maybe even decades, to pay it back. When you have extra money, then, it’s tempting to pay off more toward your debt, but then you might feel like you’ll never accomplish your dream of home ownership. Fortunately, you can learn how to do both.

Get a Low (or Zero) Down Payment

If you use Physician Mortgage Specialists to locate home loans for doctors for you, you can count on getting the lowest possible down payment — in some cases, even zero dollars down is possible. Not having to save up for this large down payment (usually about 20 percent of the cost of a home through typical mortgage channels) means you can put the money you otherwise would have used for a down payment toward your school loans instead.

Get a Low Rate

Locking in a low mortgage rate with our help also frees more of your paycheck to put toward paying down debt. With a low-rate mortgage and low monthly mortgage payments, you can afford to have both an unpaid school loan and a mortgage at the same time — a must for starting a family or breaking away from the often more expensive life of a renter.

Stack Your Debts

Add up all of your bills and minimum loan payments (school, mortgage, and anything else left unpaid, such as credit cards and car loans) and deduct it from your monthly income. Decide how much more you can afford to pay each month while still earmarking some money for savings.

Put all of that excess toward your credit cards, car loan, or school loan. Once that loan is paid off, transfer the entire amount you paid monthly on that loan to the next. Eventually, you’ll be debt-free.

In the medical profession, you have enough on your schedule every day. Let us do the hard work of finding the best possible mortgage for you. Learn more about doctor mortgage loans by giving us a call today at (800) 619-2174.

How to Afford a House Sooner After You Graduate from Medical School

woman with calculator

While it may be one of your dreams to own your own home or condo, if you’ve spent years in medical school and have gone into tens of thousands or even hundreds of thousands of debt to make your dream of becoming a medical professional come true, you might think you can’t afford home ownership anytime soon.

On the contrary, home ownership will likely prove the most affordable housing option for a newly practicing medical professional if you know where to start.

Find the Right Mortgage

There are perks to seeking out doctor mortgage loans as opposed to traditional mortgages, including lower rates, lower down payments — and sometimes no down payment entirely, which means you won’t have to save up 20 percent of the total cost of the house or condo as you would with most mortgages. Set up a free consultation with Physician Mortgage Specialists and let us find the best mortgage for you.

Build Equity in a Smaller House

Your dream home may have four bedrooms and a picket white fence, but if you’re single, childless, or have only one child at this stage, smaller is better than bigger when you already have so much medical school debt.

Secure an affordable monthly payment and a low interest rate and choose a condo or small ranch house that costs less. Live there for at least a few years and when your family expands and/or you’ve paid down more of your debt, sell it, earn the equity, and invest in a larger home.

Stack Your Debts

Your first few years as a practicing medical professional will prove hectic. However, don’t let your debt and savings strategy go neglected during this time. Save some of your paycheck, but cut back on entertainment spending for at least a few months if not years to devote more of your check toward paying down your debt.

A Physician Mortgage Specialists representative is eagerly standing by to help you find a mortgage you can afford — with a low down payment or even zero dollars down. The right mortgage is key to home ownership sooner rather than later, and with the right rates and monthly payments, you’re likely to find owning more affordable than renting each month — which means more money for your school loans and other bills.

To learn more about securing the best physician loan mortgage, please give us a call today at (800) 619-2174!