IBERIABANK Physician Mortgage Loans

The Physician Mortgage Process—Understanding Debt to Income Ratios

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IBERIABANK Physician Mortgage Loans
IBERIABANK Physician Mortgage Loans

IBERIABANK Physician Mortgage Loans

The Physician Mortgage Process—Understanding Debt to Income Ratios

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IBERIABANK Physician Mortgage Loans
IBERIABANK Physician Mortgage Loans
IBERIABANK Physician Mortgage Loans
IBERIABANK Physician Mortgage Loans

Debt-to-income ratio—An accurate financial health check for doctors?

When investigating loans of all kinds, you will often hear loan officers ask about your “debt to income ratio.” It is an important measurement which lenders use to gauge your financial status. But is there truly a make-or-break number, and is it set in stone for medical professionals looking for a doctor mortgage loan? Let’s look into what the debt-to-income means and how you can work around it if yours is not as strong as you like.

Your debt-to-income (DTI) ratio compares your monthly expenses to your monthly income. To determine your ratio, add together all your monthly debt expenses, including credit cards, student loan payments, and rent or home ownership expenses. Then divide that total by your monthly gross income (not net, as that may include some deductions for investment or health savings accounts, which are assets). The ratio is usually multiplied by 100 to appear as a percentage.

Banks look at this number to help them determine if, by adding a mortgage payment to the debt load you are carrying, you are still financially stable; it measures your risk as a borrower and helps the bank to decide if you can easily pay back the loan they give you. In simple terms, the lower the ratio, the better your financial position is. For most borrowers, the threshold for most lenders teeters between 35 and 40%. Anything over that ratio may indicate you have too many financial payments and cannot manage another debt (mortgage payment). However, for physicians with strong income potential, there is wiggle room.  Often a large portion of the debt load doctors carry consists of educational loans. These are precisely the type of debt which physician-focused lenders either set aside or place less emphasis on. This is just another benefit doctors can enjoy when borrowing from a bank which specializes in physician mortgage financing.

The lenders

Physician Mortgage Loans has been presenting a variety of lenders who offer unique options and benefits to physicians looking for mortgage loans. With tricky finances but outstanding long-term potential, doctors are an attractive customer to these specialized lenders and often garner great service and even better terms. In this article, we introduce IBERIABANK.

Established in the late 1800’s as a savings & loan association in the sugarcane region of New Iberia, Louisiana, IBERIABANK was a leading mortgage lender in the area for many years. It continued steadily in the mortgage industry until the 1990’s, which regulatory changes and rapid expansion helped re-imagine the institution as a commercial bank, along with multiple acquisitions. With continued growth, IBERIABANK has expanded into 14 states, many in the Southern and Central areas of the U.S.  IBERIABANK offers a mortgage loan designed for doctors and dentists, and even veterinarians.

The Doctor Mortgage program at IBERIABANK is one more program which this mortgage-focused institution offers its customers. With a history steeped in mortgage lending, IBERIABANK has many years of experience providing customers with guidance and support through the home purchase and lending process.

IBERIABANK doctor mortgage program:

Minimum credit score

  • Not available

States available

Loan amounts for residents and fellows

  • 100% financing up to $1,000,000

Loan amounts for practicing physicians

  • 100% financing up to $1,000,000

Eligible borrowers

Highlights

  • Several options available, including 5/1 ARM, 7/1 ARM and 30-year fixed
  • No mortgage insurance or reserve requirements for borrowers
  • One-time close construction loans are available

Due to its history of offering mortgage loans to customers, IBERIABANK could be the perfect fit for your next physician mortgage. IBERIABANK also demonstrates its commitment to the housing industry and communities by supporting organizations which promote home ownership like Habitat for Humanity and through its membership in Neighborhood Lending Partners. It further invests in its communities through youth programs like Junior Achievement and the USTAF to provide after school and summer programming. With a full slate of financial products for its customers and a strong presence in much of the US, discover if IBERIABANK is the right lender for you. If you want to read about other potential lenders, check out our complete list here.

Debt-to-income ratio—An accurate financial health check for doctors?

When investigating loans of all kinds, you will often hear loan officers ask about your “debt to income ratio.” It is an important measurement which lenders use to gauge your financial status. But is there truly a make-or-break number, and is it set in stone for medical professionals looking for a doctor mortgage loan? Let’s look into what the debt-to-income means and how you can work around it if yours is not as strong as you like.

Your debt-to-income (DTI) ratio compares your monthly expenses to your monthly income. To determine your ratio, add together all your monthly debt expenses, including credit cards, student loan payments, and rent or home ownership expenses. Then divide that total by your monthly gross income (not net, as that may include some deductions for investment or health savings accounts, which are assets). The ratio is usually multiplied by 100 to appear as a percentage.

Banks look at this number to help them determine if, by adding a mortgage payment to the debt load you are carrying, you are still financially stable; it measures your risk as a borrower and helps the bank to decide if you can easily pay back the loan they give you. In simple terms, the lower the ratio, the better your financial position is. For most borrowers, the threshold for most lenders teeters between 35 and 40%. Anything over that ratio may indicate you have too many financial payments and cannot manage another debt (mortgage payment). However, for physicians with strong income potential, there is wiggle room.  Often a large portion of the debt load doctors carry consists of educational loans. These are precisely the type of debt which physician-focused lenders either set aside or place less emphasis on. This is just another benefit doctors can enjoy when borrowing from a bank which specializes in physician mortgage financing.

The lenders

Physician Mortgage Loans has been presenting a variety of lenders who offer unique options and benefits to physicians looking for mortgage loans. With tricky finances but outstanding long-term potential, doctors are an attractive customer to these specialized lenders and often garner great service and even better terms. In this article, we introduce IBERIABANK.

Established in the late 1800’s as a savings & loan association in the sugarcane region of New Iberia, Louisiana, IBERIABANK was a leading mortgage lender in the area for many years. It continued steadily in the mortgage industry until the 1990’s, which regulatory changes and rapid expansion helped re-imagine the institution as a commercial bank, along with multiple acquisitions. With continued growth, IBERIABANK has expanded into 14 states, many in the Southern and Central areas of the U.S.  IBERIABANK offers a mortgage loan designed for doctors and dentists, and even veterinarians.

The Doctor Mortgage program at IBERIABANK is one more program which this mortgage-focused institution offers its customers. With a history steeped in mortgage lending, IBERIABANK has many years of experience providing customers with guidance and support through the home purchase and lending process.

IBERIABANK doctor mortgage program:

Minimum credit score

  • Not available

States available

Loan amounts for residents and fellows

  • 100% financing up to $1,000,000

Loan amounts for practicing physicians

  • 100% financing up to $1,000,000

Eligible borrowers

Highlights

  • Several options available, including 5/1 ARM, 7/1 ARM and 30-year fixed
  • No mortgage insurance or reserve requirements for borrowers
  • One-time close construction loans are available

Due to its history of offering mortgage loans to customers, IBERIABANK could be the perfect fit for your next physician mortgage. IBERIABANK also demonstrates its commitment to the housing industry and communities by supporting organizations which promote home ownership like Habitat for Humanity and through its membership in Neighborhood Lending Partners. It further invests in its communities through youth programs like Junior Achievement and the USTAF to provide after school and summer programming. With a full slate of financial products for its customers and a strong presence in much of the US, discover if IBERIABANK is the right lender for you. If you want to read about other potential lenders, check out our complete list here.

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Get started with a purchase or refinance physician mortgage loan today!

Get started with a purchase or refinance physician mortgage loan today!

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