Physician Loans in Arizona

Finished Residency? Starting Your New Physician Position? Ready to Buy a Home?

You have the new job.

You have the employment contract.

Your income is about to look very different than it did during residency or fellowship.

But if you’re trying to buy a home, your previous income and medical-school debt may not reflect where you are financially today.

That is one of the situations physician loan programs were designed to address.

A physician loan may allow an eligible doctor or medical professional to qualify using an acceptable employment contract or offer letter, while certain programs may also treat student-loan debt differently than a traditional mortgage.

That could make it possible to purchase a home near your new hospital or medical practice without waiting years for your financial history to catch up with your new career.

Does This Sound Like You?

A physician loan may be worth exploring if you are:

• Finishing residency or fellowship

• Starting a new position with a hospital or medical group

• Relocating for your new medical career

• Buying before receiving your first paycheck from the new position

• Carrying significant student-loan debt

• Building savings after years of medical training

• Ready to purchase a primary residence

If several of those describe your situation, this is probably a mortgage option you should know about.

What Makes a Physician Loan Different?

Depending on your qualifications and participating lender guidelines, physician loan options may offer:

Use of Future Income
An acceptable employment contract or offer letter may be used to document income before you have established a history of receiving that income.

Different Treatment of Student Loans
Certain physician programs may use an income-based or documented student-loan payment, and certain deferred student-loan payments may be excluded depending on the program.

No Down Payment Options
Qualified borrowers may have access to physician loan programs requiring no down payment.

No PMI With Certain Programs
Some physician loan options do not require private mortgage insurance, even with a low or no down payment.

Higher Loan Amounts
Available physician loan options may permit loan amounts up to $2 million, depending on borrower qualifications and participating lender guidelines.

Who May Qualify?

Depending on the participating lender, eligible borrowers may include:

• MDs and DOs

• Medical residents and fellows

• Dentists

• Pharmacists

• Veterinarians

• Podiatrists

• Certain qualifying nurse anesthetists

• Medical interns with an eligible degree

Eligible professions and program requirements vary by lender.

Buying Before Your New Job Begins?

This is where physician loans can be particularly useful.

If you have accepted a new position but haven’t started receiving your new salary yet, an acceptable employment contract may be used to help document future income.

That can be especially important when you are relocating and want to purchase a home before or shortly after starting the new position.

Employment start-date requirements vary by participating lender and generally require employment to begin within a defined period after closing.

What About Your Student Loans?

Medical-school debt does not automatically prevent you from buying a home.

Physician loan programs may evaluate certain student-loan obligations differently than traditional mortgage programs.

Depending on the loan, repayment plan, documentation, deferment status, and participating lender, the qualifying payment may be treated differently.

That is why it is important to have your actual student-loan situation reviewed rather than assuming the balance shown on your credit report prevents you from qualifying.

What Type of Home Can You Buy?

Physician loan programs are generally designed for a one-unit primary residence.

Eligible properties may include:

• Single-family homes

• Warrantable condominiums

• Homes in planned unit developments

These programs are generally not intended for investment properties, vacation homes, second homes, or short-term rentals.

Find Out Whether a Physician Loan Fits Your Situation

The question isn’t simply whether you are a doctor.

The question is whether your new employment, student loans, credit profile, available funds, target home, and timing fit one of the physician loan programs available to you.

If you’re finishing residency, beginning a new physician position, relocating for work, or know someone who is, this may be exactly the type of financing worth exploring.

Call or text Michael Hankerson directly at 602-770-7205.

Terms and availability vary by participating lender and are subject to underwriting approval. No-down-payment options may require a minimum credit score and are subject to specific loan limits and program requirements. Loan limits, eligible professions, credit requirements, property requirements, employment start-date restrictions, and student-loan treatment vary by participating lender. Not all borrowers or medical professionals will qualify. No down payment does not mean no cash is required. Closing costs, prepaid expenses, reserves, and other transaction costs may still apply.

Michael Hankerson | NMLS# 2664119
Mortgage Broker | First Link Mortgage | NMLS# 2527988
Branch ID 2565384

Equal Housing Opportunity

This information is provided for educational and marketing purposes and is not a commitment to lend. All loans are subject to borrower eligibility, credit approval, income and asset verification, property approval, participating lender guidelines, and program availability. Terms, conditions, loan limits, and eligibility requirements are subject to change. Not all borrowers will qualify.