Physician Mortgage Loans in California
Purchase and refinance home loans for doctors, dentists and other medical professionals. Popular areas include Los Angeles, Orange County, San Diego, San Jose, San Francisco and Sacramento.
In California, physicians can find loan programs which cater to their unique needs, allowing them to buy a larger home, get a lower interest rate, better terms, lower (or zero) down payment, and other perks exclusive to medical professionals.
California physician mortgage loans—The details
A physician loan in California is a specific mortgage product designed for doctors in various stages of their careers. Most programs cater to physicians just graduating from medical school or finishing residency, a time when many doctors are burdened with large debt, making it difficult to qualify for a mortgage. With a strong housing market, physicians in the cities of Los Angeles, San Diego, San Jose and San Francisco can find a large inventory of outstanding homes and qualify for a doctor mortgage loan!
Who qualifies for a doctor mortgage?
- MD-Medical Doctor
- NP-Nurse Practitioner
- CRNA-Nurse Anesthetist
- Medical Resident, Educational License
- CNS-Clinical Nurse Specialist
- DPM-Podiatric Medicine
- DO-Doctor of Osteopathic Medicine
- DDS-Doctor of Dental Surgery
- DMD-Doctor of Dental Medicine
- OD-Doctor of Optometry
- DC-Doctor of Chiropractic
- PharmD-Doctor of Pharmacy Degree
- DVM-Doctor of Veterinary Medicine
However, don’t assume you won’t qualify if your degree doesn’t include “doctor” in the title! Reach out to us to find lenders which cater to your specific medical degree!
What makes a physician mortgage special?
Doctor loans in California offer some perks you can’t ignore. They are more generous in qualifying requirements and offer better underwriting terms. Some of the bonuses include:
Low (or no) down payments. Where conventional loans require 20% down, many physician loan programs allow for as little as zero down. Read our article to find out if a zero down payment loan is right for you.
Relaxed Debt-to-Income (DTI) requirements. Medical school debt can wreak havoc on your DTI ratio. Doctor mortgage lenders understand your unique financial situation and have a more lenient approach to this condition, sometimes even excluding medical school loans from the calculation.
Private Mortgage Insurance (PMI). Low down payment loans usually come with required private mortgage insurance, designed to protect the lender in case of loan default. Avoid this additional expense with a physician loan, which can save you hundreds of dollars each month.
Higher Loan-to-Value. Due to their stellar financial reputation, physician mortgage loans give doctors the freedom to purchase a larger or higher priced property compared to conventional loan financing.
Competitive Interest Rates. Even in unstable economic times, the medical industry is steady, making physicians preferred customer to most California lenders. Doctor loans offer medical professionals generous interest rates for all types of mortgages.
Is a physician mortgage the best choice?
A physician mortgage may be the right choice for you if you have recently completed your medical training and don’t qualify for a conventional mortgage in California. If you have just begun your career as a doctor or other medical professional, the physician mortgage will allow you to purchase (or even refinance) a home with little money down and a short employment history.
However, if you can qualify for a conventional mortgage, you should shop around find out if a doctor loan offers the competitive interest rate and terms you are looking for. As with any loan, its best to compare products to ensure you are choosing the best one for your individual needs.
Lenders specializing in doctor mortgage products
Doctor loans are a niche product and not all lenders offer them. That is why we are committed to helping you in your mortgage loan search by providing a list of some of the best physician mortgage lenders in the industry today. Check out our bank list here and let us help you find the best mortgage in California!