Physician home loans are tempting for almost all doctors since doctors can effortlessly meet the qualifying criteria. Moreover, they promise larger than life loan amounts at flat interest rates and no PMI. Down payments are optional for most of them. A fresh graduate has the entire life in front of them to make millions, so going for a mortgage loan with 0-down payment does not seem like a bad idea to most of them.

Is getting a home loan for physicians always a good idea?

Owning a beautiful family home is the quintessential American dream and physicians are indeed in a financially better place to realize this dream. However, that consists of medical professionals, who have been practicing for a while. New residents and fresh graduates may be able to qualify for these massive home loans, but it is also easy for them to step onto the debt treadmill that will run up until the time of their retirement. Don't get us wrong! Physician mortgage loans are helpful, and they are a brilliant way to finance your new home, as you should be able to find here at https://www.physicianbanks.com/.

However, there are a few situations that should prompt the consideration of other options as well.

1. Are you considering buying a two-storied house with a pool in the suburbs, when your initial plan was to buy a two-bedroom apartment on the fringes of the city? Is the availability of a physician home loan tempting you to make wrong real estate decisions?
2. Do you have at least 20% of the down payment? Then conventional mortgage is the best way to go. Going with a zero-mortgage loan can stretch the repayment period to decades and lead you to pay more for interest than principal.
3. Are you serving in the military? Is your spouse in the military? You can consider getting a VA loan instead of a home loan for physicians. The VA loans have amicable interest rates and easy repayment options as well.
4. Are you waiting for a new job? Are about in line for a promotion and a raise? Then, you might want to wait for a little before getting a specialized mortgage loan. You can use the large influx of money as the down payment and go with a traditional home loan.
5. You are uncomfortable about the financial position the new doctor's home loan will put you in. In case your circumstances change after a couple of years, you might not be in a position to write a big check. Think about contingencies before you sign on the dotted line.

Just in case you are unsure about your take on physician home mortgage loans, you can start by saving up. Keep saving cash until you have about 20% of the market value of the home. That will alleviate the risks that come with 100% financing. Complete financing does not mean not paying anything out of the pocket during the purchase. Even when getting 100% financing on your home, always remember that you have to spend at least 3% of the price as closing costs.