Between office space, staff, equipment, and other expenses, startup costs for physicians can easily top a million bucks.
If that sounds daunting, don’t worry. Huntington Bank offers physician loans tailored specifically for doctors like you.
Their physician mortgage loan lets you borrow up to $2 million to cover your business and personal needs.
With competitive rates and flexible terms of up to 30 years, financing your new practice could be an excellent option.
In this review, we’ll walk through the details of Huntington’s physician loan to help you decide if it’s the right choice for you.
Huntington Bank Physician Loan Overview
The Huntington Bank Physician Loan is a specialized mortgage tailored to doctors, allowing you to qualify based on your future earning potential rather than just your current income.
However, you must be a licensed physician within 12 months of completing your residency or fellowship to be eligible.
You’ll need a signed contract for future employment as a physician, with an anticipated start date within 90 days of closing on your home loan.
Huntington Bank will evaluate your medical school transcripts, residency information, and job offer details to determine your anticipated income as a physician.
They use this to calculate how much you can borrow for a mortgage. The maximum loan-to-value ratio is 95% of the purchase price.
The real benefit is that you can buy a home as a new physician, locking in an interest rate and home price before your higher physician’s income starts. No need to rent while saving up for a large down payment.
Interest rates on the physician mortgage loan are competitive, so you get the home you want at a fair price.
And Huntington Bank provides dedicated support to guide you through the mortgage process.
Eligibility Requirements for Huntington Physician Loans
You must meet certain eligibility criteria to qualify for a Huntington physician loan.
Huntington wants to ensure you can repay the loan, so they evaluate your personal and professional qualifications.
1. Completed Medical Training
You must have finished your medical training, medical school, residency, or fellowship.
Huntington physician loans are designed specifically for practicing physicians, so you’ll need to provide proof of completion of your training and any required licensing or certifications to practice in your state.
2. Steady Income
As a physician, you have a reliable source of income to repay the loan. Huntington will evaluate your income and employment to ensure you make enough to cover the loan payments.
They typically want to see at least 2 years of steady income as a practicing physician.
If you’ve recently changed jobs, be prepared to provide an employment offer letter and a contract outlining your compensation.
3. Good Credit
Huntington will check your credit score and credit report to determine your creditworthiness.
They want to see that you have a history of responsibly using credit and making on-time payments.
A good credit score, typically over 680, will increase your chances of approval and may qualify you for a lower interest rate.
If needed, check your credit report for errors and work to improve your score before applying.
Interest Rates and Fees for Huntington Physician Mortgages
When considering a physician mortgage from Huntington Bank, it’s essential to understand their interest rates and fees.
As with any mortgage, these charges can significantly impact the total cost of your loan over time.
Interest Rates
Huntington Bank typically offers competitive interest rates on their physician mortgages.
Rates will vary depending on the type of physician mortgage you choose (fixed or adjustable rate), your down payment, credit score, and other factors.
Fixed-rate mortgages generally have slightly higher interest rates but provide payment stability.
Adjustable-rate mortgages usually start with a lower rate, but payments may increase in the future.
- Check Huntington’s current rates for physician mortgages on their website to see available options, and use a mortgage calculator to estimate your potential payments.
- For the best rate, aim for a down payment of at least 20% of the purchase price and a credit score over 740. Higher down payments and credit scores signal lower risk to the lender and may qualify you for a lower interest rate.
Fees
In addition to interest, Huntington physician mortgages charge certain fees like:
- Origination fee: Typically 0.5-1% of the loan amount to cover the cost of processing your application.
- Appraisal fee: $300-$500 for an appraiser to determine the property value.
- Attorney review fee: Around $500 for an attorney to review closing documents.
- Title insurance: Protects the lender from challenges to your ownership and costs a few hundred dollars.
Pros of Huntington Physician Loans
Huntington Physician loan has several merits, and they include:
1. Low Fees
Huntington Bank is known for having competitive rates and low fees for their physician loans. They do not charge application, origination, or underwriting fees.
You may only incur an appraisal fee if needed to determine your property value.
Compared to other big banks, Huntington’s lack of excessive fees can save physicians thousands of dollars over the life of the loan.
2. Flexible Terms
Physician loans from Huntington Bank provide a lot of flexibility. You can choose between fixed and variable interest rates and terms of 10 to 30 years.
This allows you to find an option that fits your budget and financial goals. Variable rates start lower but may increase over time, while fixed rates remain steady.
A shorter term, like 10 or 15 years, can save on interest paid but have higher monthly payments, whereas a longer 30-year term has lower payments but higher total interest costs.
3. Large Loan Amounts
Huntington physician loans provide up to $2 million to help doctors finance a home.
This large maximum loan amount recognizes the higher earning potential of physicians and aims to meet their specific home financing needs.
The loans can be used to purchase a primary residence, second home, investment, or commercial property.
4. Fast Approval Process
As a physician, your time is precious. Huntington Bank understands this and works to provide fast approval and closing times for physician loans.
Pre-approvals can be obtained within a week to help you confidently shop for homes.
And once you find a home, Huntington aims to close physician loans within 30 days. This streamlined process helps minimize hassles and ensure a smooth experience.
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Cons of Huntington Bank Physician Loans include:
The downside of Huntington Bank Physician Loans include:
1. Variable interest rates
Huntington Bank Physician Loans may come with variable interest rates. This means that the interest rate on your loan can change over time, leading to fluctuations in your monthly mortgage payments.
These changes can potentially impact your budget and financial stability.
2. Limited property type
Huntington Bank Physician Loans may restrict the types of properties you can purchase.
These restrictions could limit your options if you have specific preferences or are interested in buying unconventional properties such as investment properties or vacation homes.
It is essential to review the loan terms and property eligibility criteria to ensure they align with your desired home purchase.
3. Risk of overbuying
Since physician loans often allow for higher loan amounts and more lenient lending criteria, there is a risk of overbuying.
Overbuying refers to purchasing a home that exceeds your financial means, potentially leading to financial stress and difficulty meeting mortgage payments.
It’s crucial to carefully assess your financial situation and determine a realistic budget before taking out a physician loan to avoid the risk of overextending yourself financially.
FAQ
What Is a Physician Mortgage?
A physician mortgage is a specialized home loan product offered by some lenders, like Huntington Bank, specifically tailored for physicians and other healthcare professionals.
These mortgages allow physicians to qualify for a mortgage with competitive rates and terms, even while still in training or residency.
What Are the Eligibility Requirements?
To qualify for Huntington’s physician mortgage, you must:
- Be a licensed physician (MD or DO) or dentist (DDS or DMD)
- Have an active medical license
- Have a contract for future employment or be currently employed
- Have a good credit history with a minimum score of 680
- Be able to provide proof of your medical degree
How Much Can I Borrow?
Huntington Bank offers physician mortgages up to $1 million. The amount you can borrow depends on your income, credit, and other factors.
While in training, you can typically borrow up to 90% of the purchase price. Once in practice, you may be able to borrow up to 100% of the home value.
What Are the Rates and Fees?
Huntington aims to offer very competitive interest rates on their physician mortgages.
They also charge no application, origination, or underwriting fees for physician mortgages.
You’ll still be responsible for other customary closing costs like appraisals, title fees, and inspections.
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How Do I Get Started?
You can apply on their website or at a branch to start the pre-approval process for a Huntington physician mortgage.
Be prepared to provide information about your medical education and career, income details, and authorization for them to verify your credentials.
A mortgage specialist will review your application and guide you through the rest of the process.
Conclusion
Huntington’s physician loans offer benefits like low fees, flexible terms, large loan sizes, and fast approval times tailored to doctors’ unique needs.
If you’re a doctor looking to finance your home, Huntington Bank should be on your shortlist of lenders to consider.
The application process is straightforward, closing costs are reasonable, and they have dedicated banker support for physicians.
At the end of the day, they aim to make the mortgage process as simple as possible so you can focus on what really matters – your patients and your practice.
Obtain a Loan Estimate from Huntington after applying to get an accurate picture of the total fees for your specific mortgage.
Carefully review rates, fees, and other details on this disclosure to help you make the most financially advantageous choice.