Kentucky is known as the “Bluegrass State” and was the 15th state to join the United States on June 1, 1792. It is also home to the world’s largest cave system known as Mammoth Cave National Park, as well as some of America’s favorite pastimes, including horse racing and bourbon. This landlocked state is bordered by Ohio, Indiana, Tennessee, West Virginia, Virginia, Illinois, and Missouri and is home to over 10,000 working physicians. 

The Kentucky housing market has shown significant strength over the last five years. According to the Kentucky Realtors Association, the housing market doubled in value over a span of five years. For the year, the state has 57,100 homes sold, nearly 2,000 more than the previous year. Sales volume broke records by the end of last year reaching $14.3 billion in sales. 

For those who are doctors and dentists and thinking about buying in the state, the Kentucky physician mortgage loan program may be an opportunity to do so affordably. The program allows qualified professionals to secure a loan without a down payment requirement or a small one. 

Pros/Cons of Kentucky physician mortgage loans

Going with a Kentucky physician mortgage brings a lot of assets into the mix. When you take out a doctor mortgage in Kentucky, you can enjoy:

• Higher loan limits that allow you to afford “more home”
• No PMI payments
• Little to no money down required

You also will likely receive special consideration of your student debt; that means that your approval process will be much easier than it might be with a conventional loan. Traditional loans make it hard for medical residents and new healthcare workers to get a home, especially if they’ve maxed out credit cards on a limited resident income and because these physicians have high student loan amounts.

Alternative home financing through a physician home loan is one of the best ways to get a home, especially if your realtor already found you the perfect place through the NMLS. You don’t have to wait until you start your job to get your new home, but be aware that repayment rules do apply much like a traditional loan. Do the math with your budget to ensure your monthly payments are in line with what you can afford.

Unlike a refinance or going through a traditional lender, there are different rules that apply with physician mortgage loans. If you’re seeking a new primary residence because you found an amazing home on the NMLS, homeownership might just been one doctor loan away.

And the downsides with these loans? Well, you need to consider that having a higher limit doesn’t mean you actually need a bigger, more expensive house. Be careful not to buy more home than you need or can afford. You may also have to deal with a slightly higher interest rate when taking on one of these loans, though that does come with a number of advantages. Be aware of the future mortgage payment, however, as it could be out of your reach to take on a big loan without the paycheck to cover it. Check out the details and contact information for each of the lenders below if you’re thinking about getting a home loan.

Is a Kentucky physician mortgage loan right for you?

If you are taking the time to consider a Kentucky physician mortgage, you may want to ask yourself some key questions. A mortgage is a real commitment, and you should only enter into one if you know you will be staying in your region for years to come. To that end, consider how satisfied you are in your current job and area. 

Next, remember that a higher interest rate can translate into a good bit of money by the time you make that final payment on your mortgage. If this is something you think is worth it, given that you can enjoy an easier approval process with higher limits, then a Kentucky doctor mortgage may be great for you.

Examples of doctors who take out physician loans in Kentucky

Let’s segue now to talking about some of the doctors and professionals in Kentucky that are taking out physician loans. You might be surprised at how similar their stories are to yours.

Fellow who has a lot of student debt

Having just landed one of only six fellowships offered by the Cardiovascular Division at the University of Louisville, Henry is on track to do very well in his career and earn a good salary. For the time being, however, he still has some serious student debt to consider. That debt has been holding him back from buying a home, even though he’s ready to settle down in the Greater Louisville area.

Banks aren’t happy with his DTI ratio, despite his great earning potential. Fortunately for Henry, a local bank is offering doctor mortgages and giving special consideration to his student debt. He will be able to access a mortgage and buy the home he needs. 

Doctor who doesn’t have a down payment

One might think that given her salary and how careful she has been with money that Denise would be ready to make a down payment on a home. The truth is, however, that her student loan payments have been slowing her savings down. Plus, housing prices are such that even 10% is a lot. Luckily, Denise can access a physician mortgage in Kentucky, allowing her to purchase a home 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.