There are many factors that go into determining which loan program is right for you and your family. We have helped hundreds of doctors through this process, and we would be pleased to put our expertise to work for you. Contact us, and we can walk you through the financing options to help you make the decision that is best for you. Below you’ll find information that can help start the conversation.
How do rates and fees compare?
The 20% down conventional has the lowest fees of most loans coupled with the lower rate, but many physicians do not have the cash available for the down payment. Even those who do may wish to allocate their resources for other uses.
Although the physician’s loan rate usually has among the highest published rates of all financing options, it usually has the lowest down payment. Fees can be harder to compare, but here are some factors to consider.
- An FHA or conventional loan with less than 20% down will require PMI. PMI, unlike loan interest, is not tax-deductible for those at higher income levels (usually $100-109K).
- You can usually eliminate origination/funding fees by putting 20% down (conventional or FHA). Most other loan options will require that you pay origination fees. These fees can start at 1.00% and go up from there.
- Many physician’s loan programs will waive the origination/funding fee.
- The physician’s loan rate is currently about 1/4% higher than a comparable FHA/VA loan.
If you’ve decided to buy a home and do not have or don’t want to put 20% down, then a physician’s loan is a reasonable option and is typically better than the other non-20%-down options.
However, as you can see, there is no “one size fits all.” Contact us today – we would be happy to put our expertise to work for you to help you find the best financing available for your situation.