Does a physician loan in Arizona make sense for you?
Asking if an Arizona physician loan is right for you is a valid question. What are some of the factors you should consider when making this choice?
Start off by asking whether the time is right. If you have just started a job, it may not be the right time to commit to a big purchase. It often takes as many as two years to determine whether a job can work for you. Committing to a home purchase may be premature if you are still in the early days of a job.
Next, ask yourself how much house you really want to invest in. One of the most appealing features of doctor mortgages is that you can get the loan with zero down. This, however, can drive some to purchase a bigger or more expensive home than they really need. Limiting your purchasing price to around two times your salary is a good idea if you do move ahead with a physician loan.
Are lower rates more appealing to you? In that scenario, you might consider waiting to see whether you can save towards a large down payment and go with a conventional mortgage instead.
Remember, too, that lenders extend physician loans to high-earning professionals like you because they believe you will be a good, long-term customer. Making a commitment to a doctor mortgage comes with advantages, including this financial relationship with the lender, but could be more than you are willing to take on for the time being. Some of the typical options with equal housing lenders, FHA loans, a refinance, or other lender opportunities might not be the right fit for you, but a physician’s home loan could open the door.
Examples of physicians who take out doctor mortgages in Arizona
Understanding how and why doctors and other professionals take out physician loans in Arizona can add another layer of clarity to your decision making process. Here are just a few scenarios that exemplify the doctors who apply for these financial products.
Anesthesiologist who doesn’t have down payment
Carmen is just beginning her residency in anesthesiology at the University of Arizona Health Science (UAHS) and has her sights set on a long-term career in Tucson. She hasn’t been able to save up much during medical school, having committed most of her day to her studies. Most of her cashflow is now going toward student debt repayments, as well.
Another resident at UAHS let her know about doctor mortgages, including the appealing benefit of getting a mortgage with no money down. Since Carmen knows she wants to stay in Tucson and wants to establish herself now early on in her residency, the time is ideal to move ahead with an Arizona physician loan.
Medical doctor interested in maximizing leverage
Marcus is in his second year as an attending physician at Banner – University Medical Center in Phoenix. His salary is great, and he has been able to make some headway with his student debt. He has even invested some of his cash on hand. This, however, has tied up his liquid assets and he doesn’t have the funds for a big down payment.
Since his portfolio is doing well, he doesn’t want to sell. Since his salary is so high at this point in his career, he’s been told he’s a great candidate for a doctor mortgage with zero money down. Rather than let go of his investments, Marcus has decided to take out a physician loan to purchase a home for his growing family.
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