Nearly 300 new doctors move to Minnesota every year. Saddled with debt and no proven earning, credit history or cash for a down payment, buying a home in Duluth is the last thing they think they can do.
Lenders, however, feel differently. New doctors, and even those in established practices, have great earning potential and present excellent credit risks.
In fact, the risk of a doctor defaulting on a mortgage is much lower than most – 0.2 percent. This is the type of risk profile that makes lenders salivate over. Thus, the creation of the “doctor loan, a home financing program for residents, established physicians, dentists and veterinarians. Offerings vary by lender and by tenure in the field. Here are just a few of the possible offerings:
- Fixed or adjustable-rate loans.
- Up to 100 percent financing and no monthly private mortgage insurance (PMI) payments.
- Loan amounts up to $2 million.
- Minimum credit score of 700.
- Qualify on contract income.
Whether you’ve just completed your residency or you are an established physician, dentist or veterinarian, if you are planning on purchasing a Minnesota home you owe it to yourself to check out these loan programs.
Feel free to contact Team Lindahl with RE/MAX Results if you would like more information.