Key Terms
- North Carolina physician mortgage loans offer 100% financing with no PMI, tailored for doctors with student loans.
- These loans can facilitate home buying, even with high student debt, but often come with higher interest rates.
- Evaluate your commitment to the region and comfort with higher rates before choosing a doctor mortgage.
Strategically nestled along the Atlantic coastline between Virginia and Georgia, North Carolina boasts the nation’s largest research park, Research Triangle Park. This prime location attracts a diverse professional community, including almost 27,000 working physicians, making it a vibrant hub for innovation and opportunity.
For many residents of the state, the thought of owning a home in North Carolina may seem out of reach. According to the Canopy Realtor Association, the average price of a home for sale in North Carolina is $328,168.
As a doctor or a dentist, purchasing a home in North Carolina may be more accessible than you realize. The state’s mortgage loan program enables many to buy a home without a substantial down payment requirement. Some may also qualify for zero down payment loans as well.
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Advantages and disadvantages of North Carolina physician mortgage loans
If you are looking into a North Carolina physician mortgage loan, you may want to take the time to look at the upsides and downsides of these loans. Understanding all that is involved can provide the clarity needed to make the best decision.
The Pros of a North Carolina doctor mortgage:
- 100 percent financing, in many cases
- Doctors can qualify based on a signed contract, in some scenarios
- No PMI required
- Favorable treatment of student loan repayments
Most new physicians don’t have another property to refinance and want to start fresh in North Carolina with a new home. This can make getting access to the right funds for a down payment a real challenge for a medical student or medical resident. Thankfully, borrowers can use a doctor loan program to bridge the gap, making the home buying process an easier one. With more flexible down payment options, this opens up more possibilities to buy real estate for healthcare professionals.
The cons of a North Carolina doctor mortgage:
- High limits can cause you to run up too much additional debt
- Lenders sometimes require additional, open accounts
Additionally, these loans can sometimes come with interest rates that are higher than those associated with conventional loans. Providers should always do their research about monthly payments, low down payment requirements, interest rates, credit scores required, and more when deciding to go forward with a home purchase under a doctor loan. Qualifying physicians can get a new home that allows them to start off in their new job on the right foot when a conventional mortgage or VA loan just don’t give enough flexibility for the unique position of a doctor.
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Should you use a North Carolina physician mortgage loan?
“Am I the right fit for a doctor mortgage?” If you are asking yourself this question, consider the following questions, too:
- Are you committed to your current job?
- Do you want to remain in your region of North Carolina?
- Are you okay with higher interest rates?
If you said no to any of these questions, take some time to determine whether a doctor mortgage is really the best fit for you. If the answer was ‘yes’ to all of the above, one of these loans may be just the financial leverage you need.
Examples of doctors who take out physician loans in North Carolina
Doctors and professionals with situations similar to yours are taking out physician loans across North Carolina. The stories below are just some of the reasons why doctors are reaching out to lenders for physician loans.
Doctor whose DTI ratio is skewed by debt
Having started a new position in pediatrics at UNC Hospitals just outside Durham, Roger assumed he would be a natural fit for a conventional loan. Little did he know that the student debt he was still carrying was throwing his debt-to-income ratio off, despite his great salary. Fortunately for Roger, a local lender is extending doctor mortgages to physicians like him. This lender understands why his student debt exists and that he will continue to be a high earner for years to come.
Doctor who wants to maximize leverage
Terry is happy being a doctor, but he may have missed a second calling in life. He has always excelled at leveraging various financial instruments in order to get a great return on investments. Having seen that a regional lender is offering doctor mortgages at a great rate, he has jumped on the opportunity to finance a new home at zero down.
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