What are the big hitter main bonuses of doing a physician Loan?
0% down is first bonus of physician loans most people know about.
Doesn't take your student loans into account. Many banks that ae not physician loans will take 1% of your total student loan balance as a monthly payment for qualifying ratios, meaning if you had 300,000 in student debt, they would use a $3000 a month payment in your qualifying ratios to buy a home. This would make purchasing a home as a resident impossible unless there was another source of income.
No PMI (private mortgage insurance) And when I say that- I mean truly no PMI. When I was a mortgage loan officer I offered "NO PMI" programs all the time to normal people. The way I did this was I increased their interest rate around 0.375% to "cover" the PMI- we called it "lender paid mortgage insurance." These physician loans don't even give you a "rate hit". So just because someone offers "No PMI!" does not make them physician loan lenders. A true physician loan does not wrap PMI in the rate- overall making it so your rate is lower with a physician loan.
Larger loan limits without hitting "Jumbo loan" rates and penalties. This is a major benefit. Check out more detail why in my Blog post on Physician Loans vs Jumbo loans.
More lax on self employed contracts than most standard mortgages.
It does not hurt to shop around with mortgages. I always recommend including at least 1 physician loan in the mmix of the 3 quote you should get when shopping for a mortgage.
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