• About WordPress
    • WordPress.org
    • Documentation
    • Support
    • Feedback
  • Log In
  • Home
  • Community
  • About Us
  • Contact Us
    Sign in
    • Home
    • Community
    • About Us
    • Contact Us
    Home » student debt

    Tag: student debt

    The Pros and Cons of Having a Mortgage under the Physician Loan Program

    In 2006, Bank of America realized that there was a great potential in securing newly trained physicians to have a mortgage. On average, US physicians are…

    MedRookie April 23, 2017
    0 Comments

    Recent Posts

    • Scoring high on the IMAT
    • Preparing for the 2023 IMAT Exam
    • Hello world!
    • The Pros and Cons of Having a Mortgage under the Physician Loan Program
    • Is Your Foreign Medical School Eligible for US Federal Loans?

    Recent Comments

    1. Murat10 on How to Find an Appropriately Accredited Medical School in the Caribbean
    2. TheDoc on How Much Do Residents Make?
    3. TheDoc on How to Find an Appropriately Accredited Medical School in the Caribbean
    4. TheDoc on Profile of a Successfully Matched IMG Resident
    5. TheDoc on Taking the Lead as a Pre-Med: Early Steps to Be Prepared
    © 2023 - MedRookie
    • Home
    • Community
    • About Us
    • Contact Us

    Forum Description

    In 2006, Bank of America realized that there was a great potential in securing newly trained physicians to have a mortgage. On average, US physicians are close to 30 years old when they complete residency and many are married and looking to buy their first home. With large amounts of debt, minimal prior work experience or credit history, and not enough money saved for a down payment, these new physicians were initially unlikely candidates for having a mortgage. Many banks have followed pursuit and taken advantage of their large earning potential by creating physician loans with no money down and loads of interest. Below are the pros and cons of utilizing the physician loan program. Pros
    • Zero or little money as a down payment
    • No mortgage insurance
    • Usually, will accept employer contract as evidence of future earnings
    • Sometimes doesn’t calculate student loans toward the loan to income ratio or uses a modified payments similar to the Income Based Repayment/Pay As You Earn calculation.
    Cons
    • Higher interest rate
    • Other options like FHA loan or a traditional 30-year mortgage may have lower monthly mortgage payments.
    • May only be available for certain type of homes
    Banks usually take advantage of physician’s financial ignorance and have higher interest rates. Physicians may not realize that the traditional 30-year mortgage may be a better option if interest is lower. However, physicians may go with a physician loan to avoid the Private Mortgage Insurance – PMI. Despite the pros and cons of a Physician Loan Program, the choice depends entirely on your financial situation and your long-term housing goals. Speak with physicians who have utilized the physician loan program and analyze the monthly mortgage payments for both options. If you want to see a comparison of physician loan programs state by state, try http://www.leveragerx.com/physician-mortgages

    Report

    There was a problem reporting this post.

    Harassment or bullying behavior
    Contains mature or sensitive content
    Contains misleading or false information
    Contains abusive or derogatory content
    Contains spam, fake content or potential malware

    Block Member?

    Please confirm you want to block this member.

    You will no longer be able to:

    • See blocked member's posts
    • Mention this member in posts
    • Invite this member to groups
    • Message this member
    • Add this member as a connection

    Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.

    Report

    You have already reported this .
    Clear Clear All