Famed for its breathtaking New England coastline and iconic lobster rolls, Maine, known as “The Pine Tree State,” offers a serene lifestyle by the Atlantic Ocean. With more than 80% of its land blanketed in forests, Maine is home to 1.3 million residents, including over 4,000 doctors, since joining the Union on March 15, 1820.

Home sales in Maine continue to be a significant topic. The state saw home sales decline in the earlier part of this year, but not because of a lack of interest. Rather, there were too few homes to sell, according to the state’s real estate association. In the most recent month that data is available, real estate agents sold homes at a median price of $325,000, a value that increased 21.04% from the previous year at the same time.

If you are a doctor or a dentist looking to purchase a home here, the Maine physician mortgage loan program may assist you in doing so. For those who qualify, this is a way to acquire a small or no down payment mortgage.

Pros/Cons of Maine physician mortgage loans

What are the pros and cons that go along with Maine physician mortgage loans? You may be asking just that if you are considering one of these mortgages. 

Maine physician loans come with many advantages for doctors. First, lenders extending these mortgages often give special consideration to student debt. Many doctors have DTI ratios that make getting approved for a conventional mortgage difficult. This special consideration is a real differentiator, therefore, for many doctors. Most healthcare professionals don’t have a first home to refinance, so they can’t come up with the big cash needed for a down payment. Their student loan balances are also a problem when it comes to qualifying for regular loans, too.

These mortgages also come with higher limits, allowing you to keep up with the prices in the housing market. They also do not require PMI and can come with 100 percent financing, or no money down. Borrowers can really get big benefits as healthcare professionals who have an employment contract discussing their future income potential.

What is the downside? You may get all of that at a higher interest rate. You may also need to open an account with your lending bank. Finally, you may run the risk of buying more home than you might be able to afford, due to those high limits. Loan repayment does come in the future, so make sure the monthly payment you take on is affordable based on your income level. No one wants to get buried in a mortgage payment they can’t keep up with.

Read through all the disclosures and mortgage rates available from various lenders to make the decision best for you. Since mortgage rates can vary, do your research when you have a new job and can use your contract to make a move forward. Whether you found your new full-time job in Maine on your own or worked with a recruiter, that employment contract is powerful for opened up doors with home loans. So if you find the perfect place to buy on the NMLS or with a realtor, check out doctor loans.

Is a Maine physician mortgage loan right for you?

At this point, if you are asking yourself whether you want to take out a physician loan, there are also some other issues you should consider. A mortgage is a long-term commitment— are you devoted to your current job, and do you want to stay in your part of Maine?

There is also the issue of a possible higher interest rate. That can cost you over the life of your loan, but many feel it’s a fair trade for the advantages you get with a doctor mortgage. If you are also willing to establish a checking or savings account with your lending bank, a physician mortgage may be perfect for your financing needs. 

Examples of doctors who take out physician loans in Maine

Which doctors and professionals are taking out these loans in Maine? People just like you, chances are, whose unique circumstances make a physician loan their best option. 

A dentist with a lot of student debt

Ira’s father was a dentist, and his father’s father before that, so it’s no surprise that he went into the field, too. While his parents helped him somewhat, he did have to take out a significant amount of student debt to get through school. Now that he has his Bangor practice up and running, he’s ready to plant some Maine roots. The problem is that his debt is holding him back, at least in the eyes of conventional mortgage lenders. A bank down the street is offering so-called “doctor mortgages” that give special consideration to this debt, and Ira is more than happy to take them up on that offer. 

A GP who accesses a great rate

As a general practitioner in Augusta, Mary has a good income and reliable job. Her DTI ratio is a little off due to student debt, and conventional mortgages that she qualifies for are coming with a higher rate. Since a doctor mortgage gives special consideration to her debt incurred during medical school, Mary will be able to use this doctor-friendly financing to purchase a new home at a reasonable interest rate. 

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.