Thinking about getting a doctor mortgage loan?
You’re probably wondering how much you can borrow and what type of home you can purchase. This is a difficult question to answer without knowing your individual situation. As a new resident, you’ll probably earn around $45,000 per year in most markets, so you won’t be able to afford a luxury home just yet unless you have a large down payment you are willing to part with.
Factors such as the amount of consumer debt you hold, your credit score and if you’ll have a co-borrower will impact the amount you can borrow with a doctor mortgage loan.
The good news is since physician loan lenders don’t include your student loans in the debt-to-income ratio, you’re more likely to actually be able to qualify for a mortgage. Keep in mind that banks who don’t offer the doctor loan will not extend credit to you in the majority of cases because your substantive student loan debts will be considered a risk.
You can use this calculator from Zillow for a rough guideline on monthly payments and what you might be able to afford. The calculator below is designed for conventional mortgages, but it can be used as a doctor mortgage loan calculator just as well. Most online calculators are fairly accurate, although you should always talk to your lending officer to get the facts.
When you use the calculator, make sure you click on the advanced tab and uncheck PMI, as doctor loans do not require you to pay for mortgage insurance.
You’ll also want to input the other fields with local data. For example, how much is the property tax in the area you’ll be purchasing in?
You can find out property tax rates here.