Physician or Traditional Loan?

[pedsgirl1]

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Hello,

I am an incoming resident and I am looking to purchase my first home. The homes I am looking at are 250-300K. My husband and I have no CC debt, no student loans. We both have credit scores >785, and can put down 50-60K down.

In our situation, is there an advantage to going with a physician loan?

Thanks for the help!

 

[nogolfinsnow]

Congrats on no student loans. I'm jealous...

There were just a series of posts on this topic here: http://whitecoatinvestor.com/. Just scroll down a little bit from the home page and look at "Physician Mortgage Loans - what's currently available?" I think you'll find the rates are always lower with a traditional 20% down mortgage. There are also posts and discussions about renting vs buying in residency.

It looks like you're becoming a pediatrician, great choice!

 

[NICUfello]

I am in the same boat as you.

Where I live Phys loan vs conventional, downpayment is 5% minimum.

Only upside with Phys is I can close 60 days before I start working, vs having to wait for 30 days after I work, for conventional loan.

Phys loan shows no PMI, but has higher interest, so in essence, lender paid PMI.....


Since you have 20% downpayment, conventional would be cheapest option. I have seen 2.85% rates out there