The Upside Of A Physician Loan For Today’s Physician Home Buyer.
With all the drama of residency, boards, recruiter calls and contract negotiations behind you, it’s time to start living. So, if buying a home is in your plans within the next several months to a year, may I suggest you consider a physician loan? Perhaps you’ve heard about them but are not sure if they are right for you or not. I invite you to read my easy Q & A piece on the subject. Read on.
What are Physician Loans?
They are mortgage loans designed for physicians which can be used to buy a home with very little or zero-money down, (100% financing) with no mortgage insurance required. Other loan programs with a less-than-20%-down-payment require mortgage insurance and have lower dollar limits.
What is the Advantage?
1. No need to “lock up” $100,000 to $200,000 or more of your cash in a loan as down payment. Instead use your ‘money-down cash’ to buy an investment property. Here in our Sarasota-Bradenton Metro market, condo rentals are a profitable business.
2. No need to save for years to afford your down payment. Even your closing costs may be rolled into the loan amount.
What is the Catch?
Glad you asked:). Your interest rate might be a little higher by say, 0.025%, 0.05%, or more. Depends on the lender. I always give two or three lender referrals for you to speak with and choose the one that offers you the best deal.
Really, so what makes it such a great deal?
1. Interest rates are still historically very low. It is still a deal, even with the slight increase in your rate. Want proof? Do the math yourself.
2. Interests rates are guaranteed to go up. Makes sense to lock in a low rate now (even with the mark up). Waiting to buy later will cost more.
3. Home prices are going up and there’s every indication they will continue to go higher and higher.
4. ‘Cash Is Always King!” It doesn’t make sense to lock up ‘good cash’ in a 15 or 30 year mortgage if you absolutely don’t have to.
So, what’s the Verdict?
If you are happy with your job and see your self staying in your location, a physician loan is your best bet. It’s a privilege available to you as a physician. Use it, if can will work for you. Call me to discuss your options.
Why do you need to take action now?
Home prices are rising. Interest rates are guaranteed to rise. The good news is that the Feds have left the rates alone for now because of the uncertainty with the elections. They will revisit and increase the rates once the election is over.
Call me on 941-960-3580 or email Millicent@RelocateMD.com and let’s talk.