Commonly known by its nickname of “The Hoosier State,” Indiana was the 19th state to enter the United States on December 11, 1816. Part of the Midwest, this state is home to a number of parks and attractions, including the hugely popular auto racing venue, the Indianapolis Motor Speedway. It is also home to over 15,000 working physicians.

In March of 2022, 6,715 homes closed for the month, a drop of about 6.5% from the same time the year before. Also notable is that home prices for the same period rose by 15.3%, to $224,000, according to the Indiana Association of Realtors. The average sales price also rose 14.2% for the month. Inventory grew as well, ahead of the spring market, by about 4.3%.

With such a rambunctious housing market in the Hoosier State, Indiana doctors and dentists thinking about buying a home may want to explore a wide range of options when it comes to financing. The Indiana physician mortgage loan program may help to make it affordable to do so as well, with its no to low down payment requirements. For a medical resident about to start their first job, use of the employment contract makes it easier to get approved for these doctor loans quickly.

Bear in mind that for a first-time homebuyer, there are specific requirements for each of the lenders. However, when compared with application and underwriting for regular loans, there is a higher level of accessibility for physician home loans for medical residents.

Indiana physician mortgage loans: The pros and cons

As you begin to familiarize yourself with doctor mortgages, it can help to also get to know some of the pros and cons that come with these loans. For many doctors and professionals in Indiana, the “pros” offer just the advantages they need to make a home purchase. Most physicians are moving to a new area after residency and don’t have traditional options like a refinance or regular loan from an equal housing lender as an option for them.

Instead, they might find a perfect home on the NMLS but need a special way to buy it, and physician home loans might be the perfect answer. The down payment options are a huge benefit for these loans, since a lower down payment is possible. However, bear in mind that even though you might have more spending power, that future mortgage payment could be very high if you buy too much home.

What are some of these advantages? It’s an impressive list: 

• Little to no down payment required
• No private mortgage insurance required
• Limits that are much higher than most conventional loans

Indiana doctors may also enjoy the fact that physician mortgage lenders extend favorable treatment to student debt. Many doctors are burdened with a good amount of debt, making it difficult for them to qualify for other loan products. 

And the “cons” involved in a physician mortgage? That list is not that comprehensive, but it is still worth considering. Higher limits can make it easier to get underwater with a loan, for one. You may also need to open a savings or checking account with your lender. And, of course, there is the fact that these loans can sometimes come with higher interest rates. Those monthly payments should be in line with your budget in your new job, so don’t take on too much house in your loan payment as a healthcare professional.

Is an Indiana physician mortgage loan right for you?

At this point, if you are seriously considering a physician mortgage loan, you may want to ask yourself a few questions:

• Are you satisfied with your current job? Make sure that you are before moving forward with a doctor mortgage. 
• Are you happy to remain in your region of Indiana? Moving too soon after taking out a mortgage can put undue stress on your finances. 
• Finally, are you alright with paying a higher interest rate? Though it may cost you a few extra dollars over the life of your mortgage, it may be worth it, considering the many benefits of an Indiana doctor mortgage. 

Examples of doctors who take out physician loans in Indiana

Let’s take a moment now to walk through some sample narratives that describe the types of doctors who are taking out physician loans in Indiana. Reading through these just might show you that many of these individuals have needs similar to your own. 

Doctor who has too much student debt

Despite just signing a contract for a high-paying position at Kindred Hospital Indiana, Deanna has been unable to qualify for a conventional home loan. Her debt-to-income ratio, or DTI ratio, is still quite high, thanks to the student debt she racked up during medical school. Turning to a physician mortgage loan is a great alternative; it gives special consideration to her student debt, and her signed contract is acceptable as proof of income.

A dentist who doesn’t have a down payment

Ethan and his wife have been saving for years. Now that his dental practice is established and doing well, they have decided to buy a home.  Given housing prices these days and the stringent requirements that come with conventional loans, Ethan won’t be able to do that without wiping out most of his savings to make a big down payment. Instead, Ethan has decided to turn to a doctor mortgage. A regional bank extended friendly terms to the dentist, and he was able to get 100 percent financing on a new house. 

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.