If you are in need of additional funds to help you meet your financial obligations, physician mortgage loans are an excellent option. Physician mortgage loans allow you to borrow money against your property. In turn, you will receive a loan to pay for the cost of health care, whether it is in hospital or home. You don’t have to worry about PMI or other hidden costs that come standard with other types of loans. Here are some of the benefits of choosing physician mortgage loans:

physician mortgage loans

100 Percent Financing – Most conventional loans come with at least 20-percent down payment, which translates to a significant portion of your loan balance each year. This expense often equates to a large chunk of your loan amount every year, so getting rid of it through physician mortgage loans allows you to save a lot of cash. Unlike with conventional financing, you don’t have to worry about lender fees, application costs or lengthy applications to process. With physician loans, you receive pre-approval in just minutes and can begin processing, normally within just one business day. With PMI, you have to wait for at least fourteen days before you see any funds, and this can cost you thousands of dollars over the course of the year.

Ease of Processing – Most physician mortgage loans are processed by the national bank. This gives you the opportunity to work directly with the national bank to get pre-approval. The national bank staff understands the federal regulations, and your financing options, so you won’t be confused or disappointed with the entire process. It also allows you to expedite the process, which helps you save time, money and stress. You don’t have to worry about waiting on the approval from your bank, as most transactions are approved on the same day.

Flexible Terms – Many people don’t realize how much flexibility physician mortgage loans offer. One of these is a 100-year fixed rate. If you’ve been in the practice for several years and haven’t encountered any fluctuations in your income or expenses, you should be eligible for this option. There are other options like a ten-year fixed rate and a six-month adjustable term. Find out exactly what you qualify for and go from there.

Flexibility of Payment – Many people who take physician mortgage loans don’t realize that there is the option of prepayment. This is an option that lets you pay off your balance over time without incurring additional interest. You’ll find several companies offering prepayment options, and it’s important to know exactly what payment options are available to you. Make sure you ask questions and get all of the information you need to make an informed decision. You can also find companies that offer automatic roll-overs if you’re not able to pay your balance off in full at the end of the term.

Free Application – Most physician mortgage lenders make applying for the loan easy by providing a comprehensive application that doesn’t require any fees. You’ll need to complete a basic questionnaire detailing your personal and medical history. This questionnaire will also tell the lender what type of physician loan you’re looking for. Don’t guess at your answers or you’ll end up paying for more than you wanted to.

Higher Interest Rate – Private physician loans tend to carry a higher interest rate than those offered by the government. However, there are companies that offer private loans at lower interest rates than those offered through the government. Before signing any kind of contract, make sure you understand exactly what you’re getting yourself into. For example, many private lenders will require you to have an active bank account and proof of insurance. While it’s difficult to have all of these things when you’re in a situation where you need to secure a loan, they’re still important to keep in mind when you’re trying to secure a private loan for your medical bills.

No Collateral or Security – Most of the time, you won’t be able to secure a private loan with your house as collateral. In cases where this is the case, you can consider taking out a personal loan, or you can try getting a line of credit from a financial institution. Both of these options have much lower interest rates than most physician mortgage loans do. If you don’t want to take a bank loan out, you may also want to consider getting a line of credit from your health insurance provider. Either way, it’s important that you do your research and find the best loan available to you.