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Could a Medical Mortgage Be Right for You?

With residency, fellowship, and attending contracts signed, it's that time of year when physicians from all over the country are preparing to move to Charleston to accept jobs at MUSC and other area hospitals and medical practices. 

Moving to a new city can be daunting, and many newcomers set their sites on renting until they can get their feet on the ground. But with area rents climbing, others are taking a serious look at buying right away, thanks to the help of medical mortgages (aka, "doctors loans") offered by many lenders.

Each year, The Medical University of South Carolina (pictured) and other area hospitals attract some of the best and the brightest from around the country. Many of those professionals are left to decide: Should I rent or should I buy? Photo courtesy of www.musc.edu.

I recently sat down for a Q & A about Medical Mortgages with Matthew "Matt" Holloway, Mortgage Loan officer at First Citizens in Charleston.

Here's what Matt had to say: 

Matt: At First Citizens, our Medical Mortgage program is designed to meet the financial needs of medical professionals. It allows for lesser down payments and is underwritten for our portfolio. We will lend up to 100% loan-to-value at certain dollar amounts for a primary residence and up to 90% for second homes. These loans are available for purchase, refinance, construction and renovation transactions.

Matt: If a person is just beginning their residency or fellowship and have their loans in deferment, we can use the deferred $0/month payment in qualifying. This differs greatly from traditional mortgage guidelines that might require using payments in excess of 1.5% of the total balance even if payments are deferred. If the person is out of residency, then we would use the fully amortized payment.

Matt: When compared to our other portfolio loans, the Medical Mortgage rates are identical; there is no premium involved for putting less down, so a candidate for this loan can expect to lock in to a very competitive rate despite the lower (or lack of) down payment. With all of our Medical Mortgages, there is no mortgage insurance required or additional fees for choosing this loan type.

Matt: Our guidelines state that we can close up to 60 days in advance of their contracted start day. Like all of our guidelines, if there's a scenario that doesn't quite fit this box, we would still be delighted to entertain it.