Natalie Faye/ImageSource/Getty Images
Loans for new doctors, lawyers and high-income professionals
Fresh out of medical school or residency? Many banks and lenders have a mortgage program just for you.
Newly minted doctors "are coming out of residency with $200,000 to $300,000 in loans at a steep interest rate," says James Dahle, an emergency room physician and author of the blog WhiteCoatInvestor.
And most residents earn $50,000 to $55,000, he adds.
So qualifying for a typical mortgage would likely be problematic. But banks recognize that these professionals potentially have a great income and likely some wealth, Dahle says.
And the default rate for doctors is "astronomically low," he says.
The terms: Often for new professionals only, these programs typically allow homebuyers to put down less than 20% and still dispense with private mortgage insurance -- potentially knocking hundreds off the monthly payment, says Dahle.
Often they exclude student loans from the underwriting calculations, he says. And many will accept a contract for a pending job, rather than demanding months of pay stubs for an existing job, he says.
Frequently, they're also open to other potentially high-dollar new professionals, like attorneys, dentists, pharmacists and optometrists, says Dahle. "The goal is to get someone who will have significant income and low risk."
RATE SEARCH: Ready to shop for a mortgage? Find the best deal today.