What is a Doctor Mortgage Loan?
Simply put, a Doctor Mortgage Loan is a Jumbo, non-conforming, mortgage, designed for high net worth people, who might also be carrying a substantial school loan debt.
Every year 16,000 new doctors graduate from medical school and about the same number graduate from residency. Most have little money saved and lots of student debt. But these doctors have incredible future earnings potential. By standard criteria, they will have a difficult time securing a mortgage. They have very little to put down, they have a ton of debt already, and have no proven earnings.
Something had to be done. The “Doctor Mortgage Loan” was born. The Doctor Mortgage typically requires little to no down payment or mortgage insurance. Avoiding mortgage insurance can typically save hundreds per month in a mortgage payments. Most of the time a person would have to put at least 20% down to avoid mortgage insurance. Furthermore, the school debt would be a definite killer. A Doctor Mortgage Loans typically doesnt include student loans in the debt ratio calculation. This is important because many residents and fellows would not qualify for a mortgage loan or they would have to get a less expensive home if student loans were included in their debt ratio.
If you are a 4th year Medical School Graduates, Residents (MD), Fellows (MD), Attendings (MD), Doctors of Podiatry Medicine (DPM), Doctor of Osteopathy (DO), Doctors of Dental Science (DDS), and Doctors of Dental Medicine (DMD) can qualify. Most doctors are eligible upon Medical School graduation. A recent graduate will need to provide a “Match Day” letter showing your residency program. This letter should include position, start date, and salary. And the doctor is allowed to close on a new home up to 60 days prior to starting residency.
Learn more about our Best in the Industry Doctor Mortgage Loan Program here.
Would you like to compare a Doctor Mortgage Loan to other standard mortgages? Click here