Doctor Loans

Doctor Loans

Have you recently graduated from medical school and are interested in purchasing a home, but are perhaps concerned about being able to afford mortgage payments because you owe a significant amount of money on student loans? You still may be able to buy a home using a doctor loan, which is a mortgage intended for people who earn a high salary, but owe a considerable amount of student debt. If you are beginning a high paying career with some student loan debt and are looking to purchase a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage can work closely with you to determine the best financing option for your situation and help put you into your dream home.

What is a Doctor Loan?

A doctor loan, also sometimes called a physician loan, is a mortgage targeted towards medical professionals who have a significant amount of student loan debt, and their work history does not yet reflect their higher salary potential. These types of loans can also help home buyers in other career fields to secure home financing, including dentists, veterinarians, lawyers, etc.

There are several benefits to obtaining a doctor loan when purchasing a home. First of all, physician loans usually require a lower down payment, and in certain cases, sometimes a down payment may not be required at all. Doctor loans do not require private mortgage insurance, which will lower costs significantly. Most doctor loans do not take student loan debt into consideration when calculating debt-to-income ratio, and doctor loans can allow a home buyer to close on a home faster due to a loan approval process specific to physician workers.

Qualifying for a Doctor Loan

There are certain requirements that must be met in order to obtain a doctor loan. Typical qualifications for a doctor loan include:

  • You will need a credit score of approximately 700, although some lenders may allow a score of 680
  • You will need a debt-to-income ratio, (DTI), of 45% or less, and this does not take student loan payments into account
  • You will be required to provide documents proving that you are working and earning a salary
  • If you have not yet begun working and are just beginning a residency, an employment contract may be acceptable, ideally one demonstrating that you will begin working in the next 60-90 days
  • You will want to receive pre-qualification and pre-approval to facilitate the application process

Get Help Closing with a Doctor Loan

Purchasing a home and financing with a mortgage is a very important decision. If you have high earning potential, but perhaps carry a large amount of student loan debt, a doctor loan could help make your dream of owning a home become a reality. If you are a medical professional looking for a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, contact the loan specialists at Foundation Mortgage. We can help find the best financing option for your situation.


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