Montana is part of the Mountain West region of the United States and the 41st state admitted into the Union in 1889. The state is known for its big ranches and stunning landscapes, as well as Yellowstone National Park and Glacier National Park. Commonly referred to as “Big Sky Country” and “The Treasure State,” Montana is also the fourth largest state by area and the third smallest in population density. That population includes some 2,750 active physicians. 

The housing market in the state is problematic for many Montanans, including its doctors. Though real estate is competitive throughout the state, in Gallatin County, homes averaged just 13 days on the market last month. The demand for housing has caused a number of property owners to list their homes for sale, leading to an over 71% increase in inventory for the same month. The median sales price for the area rose over 37% to $590,000 as well. 

For those dentists and doctors who want to buy a home in this competitive market, there could be a bit of help in a Montana physician mortgage loan program. This program makes it possible for qualified buyers to secure a loan with a minimal or even no down payment. 

Pros/Cons of Montana doctor mortgage loans

If you are giving careful consideration to taking out a doctor mortgage in Montana, an essential first step is weighing the pros and the cons involved. The pros are many and offer a tailor for many doctors. With a physician loan, you can get:

• 100 percent financing on a home
• High loan limits that allow you to buy a bigger home
• Special consideration for student debt
• No PMI payments

The special consideration toward student debt is particularly relevant for doctors, many of whom carry this form of debt well into their careers. Loan repayment will kick in during the future, so it can be possible for someone to take on a house that’s more than they can really afford. It’s tempting when you find the perfect spot on the NMLS to come in with no down payment option, but that can also make monthly payments higher in the future. For healthcare providers who are new to the home buying process, a future budget is important.

The downsides of doctor mortgages? There are a few:

• Higher limits can lead to spending more than you should
• Some loans may have higher interest rates

Also, your lending institution may require that you open another account with them (i.e. a checking or savings account.) They are looking to build a relationship with you in the long term. A doctor loan program might be the right fit for a recent medical student graduate or someone who has completed residency and has a new job offer in hand. If moving to the state of Montana for a new job, work with a realtor to help find your dream home on the NMLS and then look into whether or not a doctor loan program could help you get the financing you need.

When choosing lenders, always read through the details of the loan repayment program, too. You need to know interest rates and other requirements that could influence your overall costs, such as whether there are any pre-payment penalties on your mortgage. Doctor home loans are often used to help practicing physicians find a new home and secure it with a streamlined home buying process, but it’s important to find the right lender.

Is a Montana physician mortgage loan right for you?

Are you a big fan of Big Sky Country? Do you see yourself staying in your job and in Montana for a good while? Then one of these loans may be great for you. Making a commitment to finance a home should typically only happen if you have spent at least 1 or 2 years in your job.

Also take some time to consider that you may be paying a higher interest rate for this financing. This can rack up over the life of your loan, but many physicians who take out doctor mortgages don’t mind this, especially when conventional lenders won’t approve them due to student debt. 

Examples of doctors who take out physician loans in Montana

Doctor who has a good deal of student debt

When Tucker took out student loans to get through medical school, he never thought about what it would make him look like to the banks. Now that the time has come for him to buy a home, he’s been surprised to hear again and again from conventional lenders that he can’t get approved for a loan. His debt-to-income ratio is too high for the time being, knocking him out of contention. Luckily for Tucker, a local bank is offering doctor mortgages and will give special consideration to his debt, allowing him to purchase his first home. 

Doctor who found a good rate

Max had always heard that physician loans came with higher rates. For this reason, he had held off from getting one, hoping that he would eventually pay down his student debt and save enough to take out a conventional loan with a low rate. He was pleasantly surprised when a colleague at his practice in Boseman alerted him to the fact that a local lender was offering a doctor mortgage with a great rate. Max jumped on the deal, eager to enjoy special consideration of his debt, zero down payment and no PMI. 

Looking for a physician loan in a different state?

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