Key Terms
- A Utah physician mortgage loan comes with high loan limits and options for up to 100% financing.
- Student loan payments typically receive favorable treatment with a doctor loan, making it easier to qualify for a mortgage.
- Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment and can include high loan amounts up to $2.5 million or more, depending on the physician mortgage lender.
Utah is a state noted for its open areas and tall mountains. The Salt Lake City area mountains are the perfect place to ski during the winter months as the area gets over 500 inches of snow on average each year. The Sundance Film Festival takes place in Utah each year. It’s the largest indie film festival in the country and takes place in Park City. Beautiful natural areas and an outstanding quality of life help make Utah a desirable place to live for its citizens, including over 7,000 active physicians.
The Utah Association of Realtors reports that, in May of 2022, 4,286 homes were sold in the state, a drop of about 7.5% over the previous year. The median sale price of those homes was over $535,000, a 23% increase from the private year. This growth is due to numerous factors including limited homes for sale.
A Utah physician mortgage loan program may be able to help some qualified doctors and dentists obtain a loan to purchase their primary residence in the state. Some home buyers may need a minimum down payment or, sometimes, none at all.
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Pros/Cons of physician mortgages in Utah
Before taking out any mortgage, you always want to take a look at the pros and cons of that product. A Utah physician mortgage loan offers many benefits, especially when you consider the high volume of student debt many of these professionals carry. To that end, one primary benefit is that a lender making one of these loans will extend special consideration to any student loan repayments. Additional benefits include:
- High loan limits
- No PMI
- Easier underwriting requirements than many conventional loans
- 100 percent financing, in some cases
What are the cons associated with a Utah physician loan? All of these plusses may come at a higher interest rate, when compared to the average conventional loan. You may also need to open a checking or savings account with a lender in order to consolidate your long-term relationship with that institution. If you’re looking to refinance, check with the bank first to see if they offer it. Finally, health care providers like veterinarians or nurse practitioners are often excluded.
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Is a Utah physician mortgage loan right for you?
Are you still carrying a good deal of student debt? If the answer is yes and you are still a resident, your DTI ratio may be high enough that a conventional lender won’t approve you for a mortgage. In that scenario, a doctor mortgage is a great option.
Are you committed to your current job, and do you want to stay in your region of Utah for many years to come? If you say ‘yes’ to that, as well, then these financial products can be a great fit, too.
Do you think that a higher interest rate is a reasonable price to pay for the other advantages you get with a doctor mortgage? A yes to that also means you may well enjoy taking out a physician loan in Utah.
Examples of doctors who take out physician loans in Utah
A wide range of doctors and professionals in Utah are taking out doctor mortgages. Even doctors in some very comfortable financial positions are still deciding to go with physician loans in order to maximize their leverage.
A resident managing student debt
In the second year of her residency at Salt Lake Regional Medical Center, Susan is happy with how her career is going. She knows she wants to stay in the SLC region for good, since she loves the quality of life and the outdoors. She is still managing a good deal of student debt, however, and her second year income is still not big enough to make her DTI ratio attractive to conventional lenders. A physician loan will allow her to purchase a home and settle down, since the lender understands that her debt isn’t reflective of bad decision making and that her income will only increase.
An established Internist who wants to maximize leverage
Duvall is an established Internist in Provo with a sterling reputation and great income. He has managed to make a wide range of investments and is interested in buying a new home. By taking out a doctor mortgage, he can enjoy 100 percent financing and high loan limits that give him an edge in the housing market and maximize his leverage.
Looking for a physician loan in a different state?
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