PhysicianLoans, an Ohio-based mortgage lender that specializes in loans for medical professionals, announced recently that it is now offering a $750,000 mortgage with no down payment requirement and no private mortgage insurance.
The loan is being offered as part of the company’s flagship product, which is called the Doctor Loan. The loan is available to medical doctors, dentists and veterinarians.
The Doctor Loan also features no private mortgage insurance.
Offering zero-down loans to doctors isn’t new for PhysicianLoans, the company said in a release. This recent announcement is simply increasing the maximum loan amount to $750,000.
The company is currently licensed to lend in 18 states, including Georgia, Michigan, Minnesota, Pennsylvania, Ohio, Texas, and Wisconsin.
According to details from the company, it offers zero-down loans to doctors because the amount of debt that the doctors rack up in medical school makes it difficult for them to save for a down payment.
“Today’s young doctors would like to both pay down their debt and buy a home,” PhysicanLoans president Tal Frank said. “While a post-residency doctor making six figures has the cash flow for both, they do not yet have the down payment required by a traditional bank.”
The company said the increase is necessary due to rising home prices.
“The need for the increase was brought about by the continued appreciation in home values over the last several years,” Frank said.
“Doctors completing their training now have to pay more for a home than they did five years ago which would translate to an even higher down payment with traditional banks,” Frank added. “The increase to $750,000 for zero down keeps more homes in reach for new doctors who recently completed training.”
The company said that it does not view either zero-down loans for doctors or increasing the maximum amount of those loans to be risky.
Frank said that physicians maintain a “near zero” delinquency rate on their doctor loans.
“We have a long track record proving that doctors are a safe bet for mortgage loans and so we are willing to go outside the box,” Frank concluded.