Richard's Real Estate Thoughts - Chattanooga TN Mortgage Lender: Mortgages for doctors

Mortgages for doctors

Doctors can take advantage of special mortgage programs that allow for lower down payments and purchase prices higher than normal conventional limits. These programs are offered to licensed medical doctors and residents, including dentists, optometrists, and pediatricians. While often a standard conventional or Jumbo loan are better options, for many doctors the benefits of this mortgage program can make a difference.

The main benefits are the higher loan amount, lower down payment, and excluding from debt calculations any deferred student loan payments that are deferred for 12 months from the closing date.

Loan amounts up to $650,000 are allowed with a 3% down payment. Loan amounts up to $850,000 are allowed with a 10% down payment. In many areas these loan amounts are greater than the FNMA maximum mortgage loan amounts.

The 3% down payment can be helpful.

The ability to exclude deferred student loan payments from debt to income calculations is an important benefit of the mortgage program. Only the deferred student loans for the borrower with the qualifying license can be excluded. The ability to exclude deferred student loans can make a difference for many doctors in how much home they can purchase.

Another benefit that can help some doctors to purchase is that projected income can be allowed in some cases, based on an employment contract. Similarly, there are guidelines for doctors who have less than 2 years employment.

Many doctors will find that standard conventional and Jumbo financing will be better options. For those doctors who benefit from this special mortgage program, these features can make a difference in their home purchase.

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Richard Smith
NMLS# 184479 TN# 104002 GA# 28928 

Conventional, FHA, FHA 203k, HUD $100 down purchases, VA,

Rural Development ( USDA), and Jumbo Loans

Lending in Chattanooga, Tennessee and Georgia for over 20 years.

Sierra Pacific Mortgage

Cell phone: 423-280-0345 Email:

Visit my website to inquiry about a home loan.

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This blog represents the opinions of Richard Smith. The posts and comments written on the blog do not represent the opinions or positions of Sierra Pacific Mortgage. 

Comment balloon 2 commentsRichard Smith • November 04 2016 11:42AM



Very interesting stuff, good to know. Question, per your text:

Only the deferred student loans for the borrower with the medical license can be excluded. 

Does this mean a licensed optometrist, for examole, cannot take advantage of this feature? Or by "medical license" do you mean all categories that you mentioned earlier in the post?

Posted by Olga Simoncelli, CONSULTANT, Real Estate Services & Risk Management (Veritas Prime, LLC dba Veritas Prime Real Estate) 12 months ago

I need to rewrite that more clearly. Thank you for pointing this out.  Only the licensed person can have the deferred student loans excluded.  That should allow all the categories mentioned.

Thank you.

Posted by Richard Smith, FHA VA Rural Development in TN GA (Sierra Pacific Mortgage) 12 months ago