Known to many as the Blue Hen State or the Diamond State, Delaware was one of the original thirteen colonies and the first state to ratify the Constitution. Given that, it’s not surprising that some call it by yet a third nickname, the First State!

These days, one of Delaware’s most appealing characteristics is its business-friendly laws and tax structures. That’s why over half of the businesses on the New York Stock Exchange call it home. Over 2,800 doctors also call it home— a significant number in a state with an adult population that doesn’t even reach 300,000. 

Whatever job you may have, many may believe that owning a home in Delaware may be unattainable. Data from Delaware Online shows the average sales price for single-family homes is currently $345,000. This includes the fact that 58.6% of the homes sold above the listing price, which is a 125% increase when compared year over year. Many places in Delaware offer great real estate options, such as New Castle or Dover. No matter where you’re moving, however, medical professionals might need help with getting a doctor loan.

For doctors and dentists who wish to buy a home in Delaware, the physician mortgage loan program may offer the help and guidance needed, even allowing you to purchase a loan with a minimal down payment and, in some cases, none at all. 

Top reasons to consider a Delaware physician mortgage loan

A physician mortgage loan can be a great option for any doctor or professional. It’s a big commitment, however, so before entering into this financial agreement, make sure to weigh the pros and the cons. 

What are some of the pros? To start, many find the fact that you don’t have to put any money down on these loans in many scenarios very appealing. There is also the fact that you are exempt from making PMI payments with these types of loans. For professionals who incurred a lot of student debt during their education, there is also the fact that student debt is dealt with very favorably in a physician mortgage loan. 

If you have a lot of student loan debt, that doesn’t count against you as much when qualifying for physician home loans. If you have a good job offer with great pay, the monthly payments from a doctor loan may be accessible to you, all the while giving you the right benefits in the short term to take out that loan.

For most people in residency programs, the pay is limited. During this training period, it’s hard for someone to build up a nest egg to cover a down payment. Then there’s the issue of using credit cards and the impact of high student loan debt factoring into your credit score, too. Qualifying for traditional loans can feel impossible for plenty of medical professionals, including nurse practitioners and physician assistants still in their training stages.

Of course, there are downsides as well. One downside is that these loans come with higher limits; while that may be a pro to many, in some situations, it may drive a borrower to purchase more house than they can really afford. Finally, these loans can come with a higher rate than other financial products, so you may be paying more in interest than you like. 

Is a Delaware physician mortgage a good idea for you?

When moving to Delaware to work in healthcare, you might find the perfect piece of real estate on the NMLS or with a realtor’s help. From there, however, you might struggle to figure out how you’ll meet the terms of a traditional loan on a resident’s salary. That doesn’t necessarily mean that a physician loan is right for you.

Consider the following questions:

Are you happy in your current job? A mortgage is a long-term commitment. Before committing to a doctor mortgage in Delaware, make sure that you are in a position where you can see yourself thriving for years to come. 

Are you okay with paying a higher interest rate? Many might say yes to that question. After all, it’s the price one pays to access financing and, in the case of a physician mortgage, comes with several benefits. 

Are you looking for a long-term relationship with a financial institution? The bank or lender extending the loan to you may very likely want to establish a relationship that lasts. For some, this might be a burden, while others might view it as an asset. 

The types of Delaware doctors who might use a physician loan

Let’s take a look at some of the doctors who take out physician loans in Delaware. These doctors, dentists and professionals may be just like you. 

Anesthesiologist who recently starting working full-time

Maeve put a lot of effort into becoming an anesthesiologist. Now that she’s comfortably installed in a position at an orthopedics clinic in Rehoboth that does the latest outpatient knee replacements, she believes the time is right (and her salary is right) to buy a home. 

There’s only one problem– she hasn’t been able to save for a down payment. The local banks are asking for 20 percent down, especially given her student debt. A doctor mortgage is a great answer. The bank offering the physician mortgage loan is extending the loan with no money down and giving special consideration to her student debt. 

General practitioner who wants to maximize leverage

Rhiannon has been working as a general practitioner for a decade now. Her investment portfolio is in good shape, but she has little cash on hand. The time has come, however, for her and her partner to buy a home. 

There is the option of liquidating some of her holdings. The time is definitely not right for that, however, and Rhiannon wants to hold her positions and maximize her leverage by taking out a doctor mortgage. She can get this loan without putting any cash down, making it the optimal solution for her current financial picture. 

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