Colorado is the 8th largest state in the United States and home to nearly six million people, including its fair share of doctors, with the latest count showing almost 17,000 physicians in the state.

With so many people calling Colorado home and the steady influx of people into the state, we’ve seen a steady increase in housing prices. The Denver Post is reporting the latest average sales price at $415,000, making it significantly more than the nation’s average.

For the doctors and other professionals hoping to buy real estate in Colorado this year, a doctor mortgage may make the process more affordable since most physician loans do not require private mortgage insurance (PMI) and many programs offer low and no down payment options. Medical doctors can benefit from a physician mortgage loan for their primary residence due to several advantages not offered by regular loans.

If you’re considering a doctor mortgage in Colorado, read on to understand the pros and cons, as well as the list of physician loan lenders in Colorado that we uncovered during our research.

Reasons to consider a Colorado physician mortgage loans

A “doctor mortgage” or physician mortgage loan can be an excellent choice for any doctor or professional living and working in Colorado. It can allow you to purchase a home without a large down payment, for one; in fact, many doctors receive 100 percent financing on their loans. Once you get a great job offer and find a great place to live on the NMLS, most doctors don’t want to be hindered by the traditional challenges borrowers face with regular loans. That’s why they choose to turn to physician home loans instead.  This helps health care professionals get a leg up on their perfect property with a loan to buy the home now with different rules than traditional loans. Doctor loans can make sense when you’re sure you can cover the repayment amount in the future.

Homeownership is often a challenge for new doctors who don’t have a first residence to refinance, possibly high credit card balances, and significant student loans taken out to pay for medical school. Much like other loan offerings, monthly payments do kick in, so it’s important to balance those future monthly payments in during your home buying process. The loan process looks somewhat different for physician mortgage loans.

These loans also exempt you from making PMI payments— an additional cost that comes with conventional loans. Doctors in Colorado who are also burdened by a good deal of student debt from undergrad and medical school receive favorable treatment of this debt, making it easier to qualify for the loan. . 

There are some downsides that can come with these financial products. These include higher interest rates and the possibility that you might purchase more house than you can afford, since these loans come with higher limits than conventional mortgages. The lender may also require that you open an account with them in order to establish a long-term relationship.   

Is a Colorado physician mortgage loan right for you?

When considering a Colorado physician mortgage loan, it’s important to determine whether it is the right option for you. Do you plan on staying in Colorado for the foreseeable future? Are you happy with your current job, and do you see yourself remaining in that position for years to come? If your answer is ‘yes,’ a physician mortgage loan may be a perfect fit, especially given the friendly terms a doctor mortgage extends to professionals like you. 

It is also important to remember that, in some instances, these products can come with higher interest rates. If you prefer to get a lower rate, waiting to save for a down payment on a conventional loan or waiting until you can pay down your student debt may be a better option. Despite their few pain points, however, these mortgages are popular with many doctors and professionals in Colorado, giving them an easy way to afford a home in a complex housing market. 

Examples of doctors who take out physician loans in Colorado

As you consider whether a doctor mortgage is a good choice for you, it may help to have a better understanding of some of the doctors who are taking out these loans. They are high-earning, gainfully employed professionals just like you who benefitted from these physician-friendly mortgage options. 

A doctor who gets the best rate with a doctor mortgage

Barbara has been financially conscientious for most of her adult life. Even when she was in medical school, she was able to build up a small savings, and her credit and income could qualify her for a conventional loan. She was delighted recently to discover, however, that there was a doctor mortgage available from a local Boulder bank that offered a very competitive interest rate. By taking out this physician loan, she could enjoy all the advantages of this product while still enjoying the lower interest rates that she prefers. 

A dentist who doesn’t have a down payment

Establishing a dental practice in Denver has allowed Malcolm to succeed in ways he never thought possible. He has a good income, a full slate of patients and a great reputation in his community. What he does not have, however, is sufficient cash on hand to make a 20 percent down payment on a conventional home loan— at least not without dipping a bit too far into savings. A regional bank is offering a physician mortgage to professionals like him, and Malcolm is eager to take advantage of home financing with no money down. 

Looking for a physician loan in a different state?

If you’re looking to explore the best physician loans in other states, click on your state below.