Should You Use Doctor Loans to Finance Investment Properties?
What Are Doctor Loans?
First, it’s important to understand what a doctor or physician mortgage loan is. This is a mortgage loan you can get that allows you to buy a house with less than 20% down and NOT PAY Private Mortgage Insurance (PMI). Remember, PMI is that insurance that you pay to protect your lender from you defaulting on your mortgage. It’s a nice benefit to not have to pay it.
In addition, these loans will generally only consider your required student loan payment (rather than your true debt-to-income ratio) so, if you are in an Income-Driven Repayment (IDR)