Known as “The Granite State” and “The White Mountain State,” New Hampshire is a historic gem in New England and one of the original 13 colonies. Despite its modest population of 1.3 million, it ranks in the Top 10 nationwide for medical professionals, with over 4,200 doctors serving the community.

For many Granite Staters, including its doctors, owning a home in New Hampshire may seem out of reach. Data from the New Hampshire Realtors shows the average sales price for single-family homes is $406,000. Homes averaged 17 days on the market last month, meaning properties are moving relatively quickly in the state.   

A New Hampshire physician mortgage loan program enables qualified professionals, such as doctors and dentists, to obtain a home loan that does not have a down payment requirement or, in some cases, a minimal one. This could make it easier to purchase a home in the state.  

Pros/Cons of doctor mortgages in New Hampshire

Are you considering a New Hampshire physician mortgage loan? Then you may want to consider the pros and cons, too. 

Let’s start with the pros, of which there are many. With a doctor mortgage, you can often access 100 percent financing on a home, meaning that you won’t need to put a single penny down on the loan. You also get favorable consideration of your student debt, meaning a high DTI ratio won’t prevent you from qualifying. New Hampshire physician loans also don’t require PMI, saving you a bit of money.

Some lenders will offer a doctor mortgage based only on a signed contract of employment, meaning that you can finance your home before you start a job. Sometimes, it’s nearly impossible for doctors to get conventional loans because of the high down payments required.

What are some of the cons? Well, all of those benefits may come at a “price” in the form of a higher interest rate. Another issue to consider is that these loans come with high limits. While that can be great for affording more home, it can also make it easier for you to get in over your head and buy more house than you need. Leaving a residency program often means big changes in the finances for borrowers who are physicians, but you need to balance your budget carefully. Much like veterinarians or dentists, knowing what you can afford is important.

The right lender and loan officer can make a big difference with doctor loan programs. You’ll want to carefully review the NMLS and see what kinds of properties and budgets you’re looking at, but you also want individual details about the lenders. For example, you want to know if you can refinance in the future, interest rates, prepayment penalties, and comparisons of monthly mortgage payments. For future healthcare professionals or current providers, these loans can create a quick path to homeownership. If you’re seeking a new home to match your new full-time job, check out these potential lenders as you enter the process of becoming a homebuyer.

Make the home buying process easier when you find the right lender with the right loan repayment program for you. Consider too that your new employer might be willing to pay back some of your student loans or offer a housing incentive to help you purchase a home in the region or in underserved areas near your new job in New Hampshire.

Is a New Hampshire physician mortgage loan right for you?

Is this financial product right for you? When weighing this issue, you may want to take a good look at your current job. Is it a position that you enjoy, and do you think you will stay in this position for many years? If that is the case, then you are ready to make the commitment to a mortgage. 

Take a minute, too, to look carefully at the interest rate you may get with a physician loan. While it could be considered a fair exchange for special consideration on student debt and high loan limits, it will cost you money over time. If that doesn’t feel right, then a doctor mortgage may not be right for you. 

Examples of doctors who take out physician loans in New Hampshire

The following are some classic examples of New Hampshire doctors who are taking out physician loans. Reviewing these stores can help clarify whether or not these loans are right for you. 

Physician with little or no down payment

Libby married her husband during undergrad and  had a child early on. Since both she and her husband, Tom, are at the start of their residencies at Exeter Hospital, the couple has decided to look around at mortgage options. 

Raising a child so early in life didn’t allow them to build much savings, so they will only qualify for a mortgage that requires little to no money down. Thankfully, the fact that they have signed contracts on their residencies qualifies them for a physician loan with a local Exeter lender. The lender will also give special consideration to their student debt. A physician loan is the best option for Libby and Tom as they settle into life in the Granite State. 

Doctor who prefers keeping money in investments

Rick has an established dermatology practice in Concord, with great patients, reliable staff, and impressive income. He has been able to make some investments in the stock market, too. While he wants to move into a larger home, he doesn’t want to sell his stocks in order to have the cash available for a down payment. Instead, he’s decided to turn to a physician mortgage loan with 100% financing, allowing him to maximize his leverage and keep his stock portfolio intact. 

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