Outsiders may think of Minnesota as a cold weather state covered in lakes, but those that live there, including nearly 17,000 working doctors, know that this northern state is filled with beauty and points of interest. Known as the “Land of 10,000 Lakes,” the “North Star State,” and the “Gopher State,” Minnesota was the 32nd state to enter the US and is home to multiple professional sports teams. It is also home to the Mall of America. 

For many, even most doctors, owning a home in Minnesota may seem like it may be out of reach. Data from the Minneapolis Area Realtors shows the average sales price for single-family homes is $375,000. New listings increased by 3.2% over last year’s numbers.

The Minnesota physician mortgage loan program provides professionals, including dentists and doctors who meet qualifications, to obtain an affordable home loan. Some of these loans have low to no down payment requirements for borrowers. For many in the state, this is an opportunity to save and buy a home confidently.

Advantages/Disadvantages of Minnesota physician mortgage loans

Are you considering a Minnesota physician mortgage? Then you may first want to consider both the pros and the cons that can come with these loans. While repayment is similar to traditional loans, the reduced down payment requirement and reduced focus on student loans make these physician loans appealing. A doctor loan could be the only way for a physician to purchase a piece of real estate, especially for medical residents who come in with high student loan debt and limited cash. If you have eligibility for these loans, you need to know the benefits and challenges associated with them for borrowers. Unlike credit cards or refinancing, doctor loans base the approval mostly on the employment contract and the physician’s future income potential.

The pros are many and provide a range of advantages to physicians. One huge advantage is in how they handle student debt, something that plagues many doctors and professionals. These loans treat student debt favorably, making approval a much easier process. When buying a primary residence, it can be a big sigh of relief for physicians, dentists, and veterinarians to have student loans taken out of the picture as such as negative for home loan qualification. The home buying process is much easier for medical doctors when alternative home financing like a doctor loan streamlines things and focuses more on what’s in the employment contract. A home purchase for health care professionals is an exciting time, but it can also be stressful without the right support in the loan process.

You can also be at the start of your career or job and still qualify for one of these loans. In some cases, a lender may approve you before you have even started a new job, provided you have a contract already in place. 

Some of the issues you may have with a doctor mortgage include their, at times, higher interest rates, the additional account requirements a lender may have, and the fact that high limits can cause you to get in over your head on a loan. All in, however, the lack of PMI and no money down on a doctor mortgage can swing the pendulum back in favor of these products. 

Should you consider a Minnesota physician mortgage loan?

How can you decide if a Louisiana physician mortgage is best for you? Start out by assessing your career and your dedication to your current region and way of life. If you live in St. Paul but are dreaming of relocating upstate, it may not be the right time. If you are happy in your work and staying put, it may be. 

Physician mortgages are also not the best fit for those who want to get the lowest interest rate. While they can come with low rates on some occasions, they do often come with rates that are higher than conventional loan averages. If you don’t mind paying a bit extra for easy financing terms, zero down and special consideration of student debt, these loans are right for you. 

Examples of doctors who take out physician loans in Minnesota

Doctors in cities, small towns and everywhere in between in Minnesota are taking out physician loans. Take a look at these sample scenarios below to see which doctors are qualifying for physician mortgage loans. 

An anesthesiologist who wants to hold onto savings

Quentin is exactly where he has always wanted to be in his medical career. As an anesthesiologist at one of the premier hospitals in the Minneapolis/St. Paul area, he has achieved all of his career goals. The time has come to buy a home, since he knows he will remain committed to his current job for years to come. He wants to hold on to his savings, however, especially since his wife has twins on the way. A doctor mortgage gives him great financing options with no money down required. 

A physician who has a lot of student debt

Working as an oncologist at the Mayo Clinic is right where Roseanna wants to be. She took out a lot of debt to get there, however, and banks offering conventional mortgages are turning her down left and right due to her debt-to-income ratio. She’s paying down her student debt and her income is on its way up, but she doesn’t want to wait to buy a home. By taking out a doctor mortgage, Roseanna will be able to buy no with very friendly terms.

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