Today’s young doctors would like to both pay down their debt and buy a home. While a post-residency doctor making six figures has the cash flow for both, they do not yet have the down payment required by a traditional bank.
August 30, 2017
PhysicianLoans – a provider of specialty home mortgage loans for medical professionals today announced that it has broadened its home loan options. Now, doctors have more mortgage options with a zero down payment loan up to $750,000.
According to the Association of American Medical Colleges (AAMC), the median education debt for all 2016 graduates was $190,000, up from $183,000 the previous year. Among private school graduates, the median was $200,000 with 55% at $200,000 or more. This indebtedness makes it difficult for new doctors, even those out of residency to save for a down payment on a home.
“Today’s young doctors would like to both pay down their debt and buy a home. While a post-residency doctor making six figures has the cash flow for both, they do not yet have the down payment required by a traditional bank.” explained PhysicanLoans president Tal Frank.
The latest U.S. House Price Index Report published by the Federal Housing Finance Agency (https://www.fhfa.gov/) reports that the average appreciation across the United States in the past year was 6.64%. Appreciation averaged 34.24% over the last five years.
“The need for the increase was brought about by the continued appreciation in home values over the last several years.” stated Frank. “Doctors completing their training now have to pay more for a home than they did 5 years ago which would translate to an even higher down payment with traditional banks. The increase to $750,000 for zero down keeps more homes in…