Category: Doctors Loans

Doctors Loans

The reality is that doctors loans make a lot of sense from a bank’s perspective. Doctors are on average in a much more stable financial situation than the average wage earner, and probably much more likely to repay their debts.

That being the case, why wouldn’t they get some kind of special treatment when they go looking for loans for doctors. But what’s different about a doctor loan as opposed to any other situation where borrower and lender come together?

A couple of things. First of all, doctors are more likely to get favorable terms on their loans thanks to their high income and probability of having plenty of assets they can use to secure their loans with.

And who makes loans to doctors? Almost any bank is going to jump at the chance to give a doctor a loan. What most people don’t realize is these kinds of loans are structured specifically to doctors who are in their residency or have recently completed their residency.

The idea is that banks know – and have statistics to back this up – that doctors are going to achieve a high average income so banks are willing to give mortgages and home loans to doctors based on the kind of loan candidate they’ll be in the future, as opposed to the kind of loan candidate they are right now.

Some lenders are even willing to give doctors home loans with no pmi (private mortgage insurance). This is the best possible scenario for any young doctor trying to buy her first home.