Are you a resident doctor or a recent graduate in your first year of practice? Medical school can be hard on the finances, but unlike the general population, the past few years may not serve as a good predictor of your future income.
That’s why Ruoff offers a Doctors Only Loan to help professionals like yourself get established.
The Doctors Only Loan is underwritten to a unique set of guidelines. Here are the basics:
Down Payment – You probably won’t need one. The Doctors Only Loan allows for 100% financing in many cases. The financing ratio is based on the appraised value of the subject property, not on the offer. Translation: if it doesn’t appraise for the asking price you and the seller will have to renegotiate the purchase agreement. Also, know that if your finances and/or credit history are shaky, you may be required to put some money down. There are programs to help with the down payment if you’re coming right out of medical school and short on cash.
Mortgage Insurance – You will not be required to purchase private mortgage insurance (PMI) even without a down payment. You will still be required to secure a homeowner’s policy for things like fire and loss.
Credit Score – Good credit is required. You must have a score of 680 or above. Financing terms improve for borrowers with credit scores over 700.
Debt and Income – This is where the Doctors Only Loan truly differentiates from typical loan products. Your student loans will not be counted as part of your debt-to-income ratio. All other debts and monthly obligations do count and may only add-up to 45% (or less) of your documented income. If you are a recent graduate and have just committed to your first “real job,” be ready to provide a signed copy of your work contract. The underwriter will need proof that you will begin work as a doctor within 90 days.
Subject Property – There are no special limitations on the subject property (i.e. the collateral) other than the typical guidelines in place for all conventional loans.
Interest Rate – As with all mortgage loans, your rate will be influenced by a number of factors, including your credit score and general market forces. Both fixed- and adjustable-rate options are eligible with the Doctors Only Loan product.
Term of Loan – Loan terms vary with the most common being 30- and 15-year terms.
Do you think you could qualify for a Doctors Only Loan? Visit Ruoff.com to inquire. Ruoff is ready to serve you with a seasoned team of loan professionals trained to deliver this unique mortgage product. Even if you haven’t started looking at homes yet, especially if you haven’t started looking at homes yet, contact a loan officer to get pre-qualified. Knowing your spending limit and future monthly payment will help guide your search. Plus, starting the financial process early means you can discuss rates with your lender and lock-in at the best time possible.
Finally, it is advisable to begin working with a trusted Realtor from the start, before you start viewing homes if possible. If you need a referral for a good Realtor in your area, your loan officer can help.