There are other first time home buyer loans available that allow you to buy a home with little to no money down; however, most of them require you to pay up front mortgage insurance, monthly mortgage insurance, a higher rate or in some cases all three. Mortgage Insurance is basically insurance that protects the bank. Banks require this insurance because typically buyers with little to no money down are more likely to default on their mortgage making them higher risk for the bank. The insurance money pool helps banks offset losses in cases of foreclosures.
There are additional benefits with the doctor loan that vary from bank to bank and one of our MD Preferred partners that specialize in these loans can tell you more. Some of the common advantages include higher loan amounts, as much as 100% financing to $750,000, and loan amounts over a million with as little as 10% down. As previously mentioned, there are several banks that offer these products; in spite of this, there are relatively few loan officers that specialize in these products and those are the loan officers that we want to connect you with. After all, you don’t want to talk to a podiatrist if you’re having trouble breathing.