11 Best Hidden Doctor Mortgage Loans in Missouri
- A Missouri physician mortgage loan comes with high loan limits and options for up to 100% financing.
- Physicians have access to competitive interest rates for high loan amounts up to $2.5 million or more, depending on the physician mortgage lender.
- Doctors and other professionals can enjoy no PMI with these mortgages.
Home to the “Gateway to the West” in the form of the St. Louis Arch, Missouri is indeed a transition point between two important regions of the United States. Known alternately as “The Show Me State,” “The Cave State,” and “Mother of the West, ” this landlocked state is bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Nebraska, and Kansas and has a lot to offer to its citizens, including almost 17,000 working doctors.
For many, owning a home in Missouri may seem out of reach. Data from the Missouri REALTORS shows the average sales price for single-family homes is $289,511. That is a 10.8% increase over last year. There have been 8,138 homes sold in Missouri last month.
For many doctors and dentists who are considering the purchase of a home here, the Missouri physician mortgage loan program may make that easier to do. For qualified professionals, this program may help to reduce or even eliminate the down payment requirement that often limits purchases. If you’re interested in investigating a doctor loan, do your research about how this program works for healthcare professionals so you have all the details needed to purchase a real estate primary residence. If you’re itching to secure your new home because you found one you love on the NMLS, time is of the essence.
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Advantages/Disadvantages of physician mortgage loans in Missouri
Taking out a Missouri physician mortgage loan can be a boon for a professional, no matter where they are in their career. It does take careful consideration, however, including weighing both the pros and cons involved in a doctor loan program.
On the positive side, a Missouri physician mortgage comes with:
- Special consideration of student debt
- Loan limits as high as $2.5 million, in some scenarios
- No required PMI payment(s)
- Little to no money down
Some lenders may even approve a doctor before they have even started working in a position, provided that the employment contract has been signed. This can be extremely helpful for a new doctor moving to a new location who wants to get through the homebuying process before starting a job. Since most doctors might not have a first property to refinance, it’s much easier to avoid trying to save for months or even years to get the right down payment amount.
On the other side of the coin, there are higher interest rates to consider, as can sometimes happen with a physician loan. Lenders will also sometimes require that borrowers open a secondary account at their bank, such as a savings account, because the lenders ultimately want you to become a customer of the bank. Finally, taking advantage of higher limits can be great, but keep in mind that this also makes it easier to get underwater in a home quickly and purchase more house than you can afford. Knowing how repayment works, whether there’s a possibility of refinancing in the future, closing costs, interest rates, and other details associated with taking out this loan can help confirm if this is the right choice for you. The reduced down payment options are very attractive for healthcare professionals, but this can also make for a higher mortgage payment over the loan term. Read through all disclosures and get clarity on how the repayment will work in your monthly budget before committing to a doctor loan. Providers who have an employment contract in hand with a good income may be able to make it work.
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11 Top Missouri physician home loan lenders
If you’re in the market for a home in Missouri, consider these physician mortgage loans that are available to state residents.