Purchasing a home is a significant life event that many physicians don’t consider until later in life, once they feel their student loan debt is under control. But at Lottmann Realty Group, we think you’ve been playing the waiting game long enough. Since your medical education and training began, much of your life has been predetermined. Your path was dictated by the program you chose—college, then medical school, then residency, and then, for some, a fellowship or two—all the while, waiting for your career to actually begin. When it comes to investing in a home, however, you finally have the opportunity dictate your own journey, on your own terms. Here’s how.
Future physicians are privy to special mortgage products designed for those who have incurred a lot of debt throughout medical school and may be making modest salaries at the moment, but have high future earning potential. Known as “physician loans,” these products make it easier for you, as a physician, to qualify than those in other industries who may have the same debt-to-income ratio. A typical physician’s loan requires little money down (0-5%), and does not require the borrower to purchase mortgage insurance. In addition, physician loans generally require only an employment contract as proof of income rather than pay stubs, which is helpful for doctors who are relocating for their first job and want to be all moved in before they start. Some programs even allow you to use gift money for a down payment, for required reserves, or for closing costs. In essence, the lender is betting on your future earnings; they are taking a smart risk—one that pays off in the end—and you benefit.
Often, lenders who offer physician’s loans do not calculate student loans toward the loan to income ratio while the borrower is still in residency. Once you are out of residency, that debt becomes a factor. But if you enrolled in a federal pay-as-you-earn or income-based repayment program for student loans, which caps monthly payments at 10 to 15 percent of discretionary income, then that lower monthly payment is figured in.
If you’re tired of waiting, and interested in taking the home buying process into your own hands, we would be happy to help! Lottmann Realty Group has helped hundreds of new physicians get the homes of their dreams through these physician loan programs. We can help you facilitate this loan process with our trusted preferred lenders to fast track the next step in your life. Whether you want to buy your first home in St. Louis, or in any other city in the nation, we have the partnerships to make it happen. Plus, we understand that you’re busy and are committed to saving you time through our streamlined process.