The Doctor is in…their new home that is. 100% financing is common for our Veterans or those seeking to take advantage of USDA financing in designated rural areas. One of the often missed financing options for Physicians and Dentists is the 100% mortgage loan to $650,000. Rates are extremely competitive and for loan amounts from $650,000 to $750,000, the down payment requirement is only 5%. There is no mortgage insurance required.
Those finishing Residency or Fellowship and leaving a $50,000 a year position to one ranging from $180,000 to $400,000 may not realize this option is available. Some Physicians may be purchasing their first home well above $500,000. The program allows for the exclusion of deferred student loan debt from the debt ratios as well as the ability to close on your new home within 60 days of starting your new position. The loan is available to those just graduating Medical School or those that have been practicing for years.
If you are a Realtor or Builder, incorporate this financing option into your business plan in 2017 and market to those that can take advantage of it. If you are a Physician or Dentist, homeowner or not, spread the word to your colleagues as you couldn’t pick a better time to take advantage of the low rates and no money down financing. The seller could even pay up to 3% of your closing costs if the contract was structured that way.
One last thought, the 30 Year Fixed Doctor Mortgage comes with a Bi-Weekly payment option that allows for a true bi-weekly amortization at no extra cost. In fact, the rate is normally lower when this option is chosen. Watch your loan amortize over 26 years instead of 30. Please contact me if I can help in any way or if you need additional information. -Chris Johnstone 513-702-1338 firstname.lastname@example.org