- Michigan physician mortgage loans offer higher loan limits than conventional loans and can include 100% financing.
- Lenders offering physician loans in Michigan often extend favorable treatment toward student debt.
- Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.
Bordered by four of the five Great Lakes, the Midwestern state, Michigan, is a peninsula that is actually separated into two different parts. It was the 26th state and was admitted to the US in 1837. Since then, Michigan has earned a number of nicknames, including “The Great Lake State,” “The Wolverine State,” and “The Mitten State.”
The Michigan housing market has been making some interesting moves recently. According to the Michigan Realtors Association, the average sale price was $253,557, which is a growth of 5.29% from the year prior. These figures show the demand for homes and the lack of inventory that has caused concern in some areas as it drives up home values.
As a dentist or one of the over 28,000 doctors living and working in the state, you may wish to consider the Michigan physician mortgage loan program if you hope to buy a home in the state. This program may enable qualified professionals to secure a low- or no-down-payment home loan.
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Pros/Cons of Michigan doctor mortgage loans
Are you considering a Michigan physician mortgage loan? You will likely want to think about both the pros and cons that can come with these loans. Since most medical residents or medical school graduates don’t have a first property to refinance, it can be hard to come up with the down payment required for a traditional loan. With an employment contract in hand, however, you’re more easily able to find a perfect place through a realtor or a NMLS search and use that instead to qualify for a doctor loan.
If you’re seeking a primary residence but concerned about budgeting for that down payment or lower credit scores from high student loan or credit card balances, do your research to see is physician mortgage loans are an option.
Physician loans for Michigan professional offer a range of advantages, including:
- Higher loan limits that allow you to put in offers on a wider array of homes
- Special treatment of student debt, which can be considerable for doctors and other professionals
- No required PMI payments
Perhaps the biggest advantage with a doctor mortgage? You may likely qualify for one with little to no money. This can be a big “pro” when many conventional loans require down payments as high as 20 percent. This can be a substantial amount for healthcare homeowners because of the purchase price of homes they are looking at. With a traditional loan, it’s easy to feel like new home ownership is just out of reach. Thankfully, doctor home loans might be a potential solution so long as the doctor knows all the details about repayment and the life of the loan.
And the cons? There are some, though they may not outweigh the pros. Some downsides of physician loans include higher interest rates in some instances and the fact that you may need to open an account with the lending bank. In some rare instances, borrowers may buy more house than they need with a doctor mortgage, due to the higher limits available.
As with any search, knowing the right mortgage lenders and comparing interest rates, mortgage payments, closing costs, and other details can help you decide which bank to work with. Make sure you’re budgeting for all expenses in your new job, too, so that your monthly payment for the mortgage doesn’t get too high.
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5 Top Michigan physician home loan lenders
If you’re in the market for a home in Michigan, consider these physician mortgage loans that are available to state residents.