Physician loans are unique loan programs that make it available for physicians to secure their needed funds. Most physicians often try to talk to different banks to secure a loan so that they would be able to go into private practice. The only problem is that very few banks have loan programs that are designed for doctors, with many of them requiring considerable collateral to secure the loan. In fact, with banks, securing a professional loan is just like applying for a commercial loan because of the similarities with regards to loan requirements such as comprehensive financial statements, collaterals, and personal guarantees.
Added to that, applicants have to wait for several weeks or even months for their loan to be reviewed, at the end of which, such application may not get approved at all. Under such circumstances, their dreams of going into private practice may be delayed for a long time, or worse, may not come into pass. So if you are a physician currently trying to seek a funding source to help you get started with your private practice, it is better to consult with physician loan providers to see what your options are.
What exactly are physician loans?
Physician loans are sometimes referred to as doctor loans. The primary objective of this loan program is to help the doctor with the costs associated with their private practice. Many physician loan providers understand that most doctors spend a huge amount of money in their education to become physicians, with some of them spending their entire lives paying off these student loans. This is why the terms and conditions attached to these loans are usually designed to be favorable to physicians in recognition to the services they render to society.
Who are qualified to avail of such programs?
Physician loans are obviously available for physicians specializing in various fields of medicine. These are:
- Doctors of Dental Medicine and Dental Science
- Doctors of Ophthalmology
- Doctors of Optometry
- Doctors of Obstetrics and Gynecology
- Doctors of Osteopathy
- Doctors of Pediatric Medicine
- Other doctors in various medical fields
There are also physician loan providers that offer this type of loan programs to resident doctors, as well as medical students. Some providers only cater to doctors who are US citizens. The requirements may vary but generally, many physician loan providers require a credit score of about 720 or higher.
What are the advantages of physician loans?
Unlike other loan programs, there are many benefits and advantages available with a physician loan programs. Some of these are:
- Physicians can opt for adjustable rates
- They can enjoy 100% financing of their capitalization needs
- Low Equated Monthly Installments or EMI
- Credit score requirement is not high
- Loan insurance can be waived
There are other great benefits that physicians can enjoy if they opt to seek physician loans. Many of the physicians who availed of this program use the proceeds in purchasing additional medical equipment they need in their private practice, while some use it for their mortgages and homes. Considering that this type of loan program have low monthly payment rates, doctors can continue paying off their student loans and at the same time, enjoy the benefits that physician loans accord them.