It’s amazing to see how much down payment risk lenders will take when they know a borrower will earn a lot of money…
I often blog about the biggest reason borrowers walk away from their mortgages: a lack of equity, resulting from price drops and/or too little down (it’s not high payments, like the media will have us believe).
But there is an exception to this rule: doctors and medical professionals.
They keep paying no matter what, and mortgage lenders know this.
New 0% Down Doctor & Medical Professional Loans
This is why we can now offer 0% down loans to doctors and medical professionals.
The loans have surprisingly low rates – particularly when one accounts for the fact that there is NO private mortgage insurance (No PMI) required.
Debt ratios can be high too (up to 50%), borrowers only need a 720 credit score for 0% down, and the loan limit is $2 million.
Who Is Eligible?
Every type of medical doctor is eligible, along with residents, dentists, psychiatrists, veterinarians, and most pharmacists.
Other Reasons Lenders Offer These Loans
The other reason lenders offer these loans is to help medical professionals pay off debt.
Doctors graduate from med school with an average of well over $200,000 of student loans.
We, however, see specialists with up to $500,000 of student loans.
So – it’s better to put less money down and apply the savings to paying off student loans.
In addition, the average physician salary was $374,000 in 2024, with specialists bringing in much more ($500,000 for orthopedic surgeons, and $750,000 for neurosurgeons).
And these salaries are largely recession proof – making these loans that much safer.
Women Dominate Medicine
This has little to do with these loans, but it is info Claude shared that I thought was fascinating. Women account for over 55% of med school students now, and over 80% of vet school students.
