Massachusetts has a number of nicknames that it goes by. These include “The Bay State,” “The Pilgrim State,” and “The Puritan State.” It is an East Coast state bordering the Atlantic Ocean and is part of the New England area of states. It is where the Boston Tea Party occurred, and it was the sixth state to join the US. It is also home to over 31,000 working physicians, according to the American Association of Medical Colleges. 

The Massachusetts Association of Realtors provides some helpful insights into the housing market in the state of Massachusetts. The median home price for single-family homes in May was $617,750, and for condominiums, the median price was $531,501. The state saw 6,065 sales during that month, which is up from 5,975 the year before.

In Massachusetts, physician mortgage loan programs create an opportunity for those thinking about buying a home to secure one with little or no down payment. That applies to professionals, including doctors and dentists, who are interested in buying a home in the state. If you need a home loan but traditional options don’t give you what you need, you might qualify for a doctor home loan.

The pros and cons of taking out a Massachusetts physician mortgage loan

Taking out a Massachusetts physician mortgage loan can give doctors a much easier way to finance a home. How so? Well, for one, these financial products give very favorable consideration to student debt— a burden many doctors and other professionals carry well into their careers. These mortgages also come with high limits, making it easier to afford homes in Massachusetts. You also do not have to purchase Private Mortgage Insurance, or PMI, with these loans, lowering your cost burden somewhat. 

Since medical school leaves many healthcare professionals with high student loan debt, maxed out credit cards, and limited income from residency, it can be hard to qualify for the perfect home you found on the NMLS without getting a doctor loan.

There are some cons that come with these loans, too. You may have a higher interest rate with one of these loans as compared to conventional loan options. A higher limit, too, can give you more options, but can also cause you to get a more expensive home than you might need. Your future mortgage payment might be hard to keep up with if you’re not careful. Make sure you look at your budget for monthly payment if you’re pursuing this path to homeownership so that loan repayment is within reach.

Is a Massachusetts physician mortgage loan right for you?

Now that you have reviewed the many lender options you have access to in the Bay State, you may be wondering if a doctor mortgage is the right fit. Take a look, first, at your career. If you are in a position you love and that you will stay with for years to come, these mortgages are great options. If you plan on relocating sometime soon, they might not be the best options. 

Your lender may also want you to open up an account with them, meaning that you will establish a long-term relationship with their bank. If you don’t mind that fact or the fact that you may have a higher interest rate, you are likely a good match for a Massachusetts physician loan. 

Hypothetical doctors who could use physician loans in Massachusetts

Doctors from Plymouth to Northampton are all taking advantage of these loans designed for high earners. Are you one of those professionals? Review the stories below to see if your situation matches up with the individuals taking out doctor mortgages in Massachusetts. 

A physician who found a great rate with a doctor mortgage

With interest rates on the rise, Matilda is eager to find a mortgage with the lowest rate possible. Although she is a high earner, she still is carrying a bit of student debt. The conventional loans that she has qualified for are all, therefore, coming with higher rates. She recently heard about a bank in the Amherst region that is offering low interest mortgages to doctors like her, along with favorable treatment of her student debt. It’s by far the best option out there for her in this economy, and comes with the added benefit of a higher limit that can help her afford Massachusetts prices. 

An endodontist who doesn’t have a down payment

Working as an endodontist in the Greater Boston area has proven lucrative for Tim. His practice is thriving and his income is more than respectable. He put a lot of extra time and money into building that practice, and he doesn’t necessarily have the down payment he would need for a conventional mortgage. A physician loan gives him what he needs, offering financing for a home with little money down. 

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