A member of the original 13 colonies, New York was the 11th state to join the union in those early days. Today, it shares a border with the Canadian provinces of Quebec and Ontario. It is home to the Stock Exchange as well as a number of professional sports teams. 

While many associate it primarily with the five boroughs of New York City, it actually has much more to offer, including the Adirondacks and the Gunks rock climbing area. Many professionals call the “Empire State” home, including over 73,000 doctors. 

For many, homeownership in New York may seem out of reach. Data from the New York State Association of Realtors shows the average sales price for single-family homes is $480,000. Those numbers go up significantly if you’re looking to buy a place in NYC, Westchester or Long Island.

A New York physician mortgage loan program provides an opportunity to help you to buy into this market if you are a doctor or a dentist and meet the other qualifications. Those who do qualify may be able to buy or refinance property with a loan that has a low or no down payment requirement. Physician loans also typically have much higher loan limits than conventional mortgages, making them useful for people buying in NYC.

Pros/Cons of New York physician mortgage loans

Any financial decision on the scale of a mortgage requires careful consideration. As with most things in life, New York physician mortgage loans come with both pluses and minuses. Let’s start with the pros:

• Physician mortgages often come with 100 percent financing; otherwise, it takes very little money down to qualify for one of these loans
• Doctor mortgages do not require any Private Mortgage Insurance, offering borrowers some savings 
• These loans also give special consideration to student loan repayment, a problem that plagues many doctors and professionals. 
• You can enjoy high limits on these mortgages, meaning that you will be able to look at a wider range of homes

Of course, there are some issues with these loans that you could characterize as “cons.” They do often come with higher interest rates, meaning they will cost you more to finance than conventional loans. A lender may also write it into the contract that you have to hold an account with them, as well. 

Is a New York physician mortgage loan a good idea for you?

How can you determine whether a doctor mortgage works for you? Start off by considering how much student and medical school debt you still have. Even if you are now a high earner thanks to your medical degree, the volume of student debt you are carrying may still prevent you from qualifying for a conventional loan. A physician loan can be a very reliable alternative. 

Keep in mind that this easier approval process can come at a cost. You may need to pay a higher interest rate, resulting in higher mortgage payments, so make sure that you are comfortable with that before taking out a physician mortgage loan. 

Examples of doctors who take out doctor mortgages in New York

Who are the medical professionals in New York taking out physician loans? Their stories may sound very much like your own experience as a doctor or dentist in the Empire State. 

Doctor who doesn’t have down payment

Living in Manhattan and working at Mt. Sinai is a dream for William, who grew up just across the river in Jersey City. The city has become expensive, however, too expensive for even an attending to buy a place to live on his own. He will need at least 150k to put down on a purchase financed through a conventional loan. Not wanting to delay and wait the years it will take to save that much, he’s decided to move forward with a physician loan that requires almost no money down. 

Doctor who wants to maximize leverage

Upstate New York is where Mary grew up. She loves the winter, the Bills, and running her peds practice in downtown Buffalo. She is interested in buying a home that just came on to the real estate market, but she doesn’t want to use too much of her savings to do that. A doctor mortgage is offering her 100 percent financing on the purchase, allowing her to buy without dinging her savings at all. 

Looking for a physician loan in a different state?

If you’re looking to explore the best physician loans in other states, click on your state below.