Physician Home Loan

[ProfessionalStudent5]

Hello. I was recently told about a type of home loan for physicians that has special considerations regarding debt to income ratio, down payments, and mortgage insurance. Some lenders allow psychologists to qualify for this loan. Has anyone had experience with this?

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[AllTheFeels]

Hello. I was recently told about a type of home loan for physicians that has special considerations regarding debt to income ratio, down payments, and mortgage insurance. Some lenders allow psychologists to qualify for this loan. Has anyone had experience with this?

I have not, but would also be interested in learning more about this-especially the debt to income ratio piece. I am worried that would place people in more of a financial bind and potentially result in more foreclosures if people are being approved for mortgages they might not be able to afford.

 

[WisNeuro]

Yeah, don't do this. If you're that deep in debt, don't take on a mortgage that you can easily fall under water pretty easily. Particularly with home process at an all-time high in most places. Probably one of the worst times in recent history to go this course.

 

[AcronymAllergy]

I don't actually know, either, but it's a good question. I do agree with folks above, though, that if a person isn't able to qualify for a traditional mortgage (e.g., even via a first-time buyer program), it could be a warning sign that you'd end up in over your head. At the very least, as with any home purchase, you'd want to look at an accurate, realistic budget to see what you can afford.

 

[Therapist4Chnge]

They are out there. At my last R1 they had a preferred bank and everything setup for anyone who was faculty...but the vast vast majority were physicians who used it. They even offered a 1/4 percent discount on the terms. I was bummed when I moved bc I haven't see that at my current spot.

 

[tr]

These are structured for people who just completed a lucrative professional degree, so they have minimal current assets and maybe a bad debt/income ratio, but high expectations for future income. Usually the draw is that the bank gives you a break on the down payment; but the flip side is they will milk you with terrible loan rates, making the house much more expensive in the long run. There's no free lunch. You're better off saving up a down payment and buying a house you can afford.