Frequently Asked Questions
Q: What are the benefits of a “Doctor’s Loan?”
A: The Doctor Loan requires No Down Payment with No Mortgage Insurance. In addition, the Residents and Fellows deferred student loans do not count towards the debt ratio.
Q: Who qualifies for the Doctor loan/Physician loan?
A:This can differ with each bank but generally
4th year Medical School Graduates
Physicians and Doctors (MD) – regardless of tenure
Doctors of Ophthalmology (MD)
Doctors of Podiatry Medicine (DPM)
Doctor of Osteopathy (DO)
Doctors of Dental Science (DDS)
Doctors of Dental Medicine (DMD)
Q: Are there any fees associated with using Drmoves.com?
A: The client pays no fees to Drmoves.com. If there are any fees, then the fees will be paid by the bank, real estate company, etc.
Q: Can I refinance with a Doctor loan program?
A: Some doctor loan programs allow refinancing.
Q: Do I have to be a U.S Citizen or Permanent Resident to qualify? Most doctor loans require you to be a citizen or permanent resident.
A: No but you must have a valid H1 Visa, provide a copy of your Passport, along with your drivers license.
Q: If I am still a Medical Student and not near graduation, can I qualify for the doctor loan?
A: You are eligible upon Medical School graduation. You will need to provide your “Match Day” letter assigning you to your Resident program. This letter should include position, start date, and salary. And we will allow you to close on your new home up to 90 days prior to starting your new Residency assignment.
Q: Can I get the Doctor loan before I actually start my Residency?
A: Absolutely – You just have to provide your Match Day letter and later your fully executed Residency contract before you close on your new home. Since you will usually receive your employment contract 3-4 weeks after Match Day there is rarely a timing problem with closing on your new home within a reasonable amount of time after graduation. Most banks will allow you to close 30-90 days prior to your start date.
It is very important that you have enough reserve funds to cover the number of months between closing the mortgage and your Residency start date. Many times you will need money to cover your closing costs.
Q: My student loans are deferred currently, but will the Doctor Loan program allow the future scheduled payments to not be counted in my debt-to-income ratio?
A: Most banks will classify you as a Resident or Fellow. If your credit report states “student loan – deferred payment” or “student loan – forbearance, ” then your student loan debt will not be counted against you..
Q: How do student loan payments affect practicing Doctors and Dentists with being approved for the program?
A: Regardless of the type of mortgage program you are eligible for, your student loans in this case must be calculated into your debt ratio because you have completed training.
Q: What does my Credit Score need to be for the Doctor Loan?
A: Most banks require at least a 680, and based upon desired down payment higher scores may be required. If your credit score is too low, then you can ask a mortgage officer to do a “Rapid Re-Score”. This may make orloahome ownership available without waiting months for the score to rise.
Q: What are the loan options available for the Doctor Loan?
A: There are many different options and each bank offers different programs.