Going by quite a few nicknames, including “Land of Lincoln,” “Prairie State,” and “The Inland Empire State,” Illinois offers a diverse array of things to those looking to come to this state. From professional sports teams to the architectural masterpieces of Chicago and the shoreline along Lake Michigan, Illinois has something for everyone, including the 36,000 doctors living in this midwestern state. 

Statewide home sales in Illinois for May of 2022 were over 16,100 homes sold. That’s about a 10 percent decline from the same time in May of 2021. However, it only took 24 days on the market, on average, for homes to sell. Another important factor when considering real estate in Illinois is the value of homes. Statewide mediums were up 6.2 percent to $276,000, according to the Illinois Realtors Association.

For those who are doctors or dentists and considering the purchase of a home here, the Illinois physician’s mortgage loan program may offer a way to do so affordably, including with minimal or no down payment requirements for that great property found on the NMLS.

Physician mortgage loans pros/cons in Illinois

What are some of the pros and cons involved in Illinois physician mortgage loans? Familiarizing yourself with all aspects of these loans can help you decide whether or not to move forward with a doctor mortgage. It’s a great way to get into homeownership, but keep that future mortgage payment in mind, too.

For medical residents and new medical school graduates, it’s unlikely you have saved enough to set aside a big down payment. It’s hard to qualify for a traditional loan with your high student loan amounts often needed for medical school, either. Medical doctors can use physician mortgage loans to expand their purchase and low down payment options.

The pros offer a lot, especially to doctors, dentists and other professionals who are still carrying debt from their studies. With a doctor mortgage in Illinois, you can benefit from:

• No PMI payments, saving you a significant amount;
• High loan limits that widen the pool of houses from which you can choose a home;
• 100 percent financing, or no money down

For some, the downsides may outweigh these advantages. Going with an Illinois physician mortgage loan means that you may have a higher interest rate on your financing, for one. It is also easier to potentially buy a more expensive house than you can necessarily afford, given the high limits on these loans. You may also need to open an account with your lender, adding yet another financial commitment to the mix.

Be prepared for repayment amounts and factor that carefully into your budget. Despite these cons, many Illinois professionals still decide to move forward with physician loans, enjoying the favorable treatment of student debt and other “pros.”

Is an Illinois physician mortgage a good idea?

That may certainly be the case, but take the time to ask yourself a few questions in advance. 

An initial question you should ask yourself is how much you enjoy your current job and how long you will stay in that position. Committing to a mortgage is best done when you know for certain that you will be staying in place for a long time. If you have been in your current position for a year or two and can foresee yourself staying in that job, a doctor mortgage may be a great option. 

You also need to consider your comfort level with the higher interest rates that can sometimes happen with physician loans. The upside of the higher interest rate that can come with a doctor mortgage is that you can access the many benefits of this financial product, including special consideration of student debt. If those benefits outweigh the added cost of a higher interest rate, a physician mortgage loan is right for you. 

Examples of doctors who take out physician loans in Illinois

Who are some of the individuals in Illinois who are taking advantage of physician loans? They include doctors, dentists and professionals of all stripes whose financial pictures make a doctor mortgage their best option for financing a home. 

Cardiologist who has a good deal of student debt

Having just signed the contract on a new job at Chicago’s #1 hospital, Northwestern Memorial, Jamal is quite satisfied with how his career is going. He and his young wife are hoping to buy a home, based on his high salary in his new position. Conventional loans don’t seem to be a good fit, however; Jamal’s student debt is throwing his DTI ratio off, and banks are not pre-approving him for financing.

Fortunately for Jamal and his growing family, a lender offering doctor mortgages understands exactly why young doctors like him have so much debt. Their special consideration of this debt and their commitment to Jamal as a customer means that a physician mortgage loan can provide him and his family with the financing they need to buy their first home. 

Emergency room doctor who gets the best rate with a physician loan

Getting a good interest rate has always been a priority for Moira. For that reason, she put off taking out a physician loan a few years back. A local bank in Springfield is currently offering a doctor mortgage with a competitive rate, and now Moira is interested. Saving thousands over the life of a mortgage sounds great to her, and she’s happy to be able to take advantage of this financial product. 

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