Today, it’s an individual’s earning that decides who’s eligible for a mortgage. Keeping that in mind, one can say that the dentist community is in great shape. Even the average dentists at an entry-level opts-in for a home loan that is approximately $115,000 annually! It makes them a lucrative proposition for mortgage lenders. Dentists who are graduating from dental school have student debts to clear. It results in fewer chances of saving.
Based on a research done by the American Student Dental Association, about 75% of dental school graduates have more than $100,000 of debt. The American Dental Education Association states that the new dentists come passing out of their dental school with over $241,000 loan amount. It becomes tough for dentists to convince a bank to provide loans with such a vast debt amount.
It is here that a dentist mortgage loan comes to use. Multiple lenders are interested in taking on the dentist debt profiles that are slightly riskier. It is purely because of the dentists strong earning potential. The lenders know that with the job stability and salary that new dentists have, they will be able to pay down the student debt along with the mortgage. The home loans that gets generated for dentists come under the “doctor mortgage loan” plan for any hospital under a bank. Several mortgage lenders provide their doctor programs to the new dentists.
Benefits of dentist loans offered by physician banks
The excellent deals that chosen physician banks to provide to the new dentists are:
- A high-interest rate discounts on their work packages
- High exposure limits for investing in many properties
- The LMI (Lender Mortgage Insurance) is waived off
- There’s a flexible credit standard for the new dental clinics and new graduates as well
Qualifying for dentist loans
If you want to qualify for the professional dental discounts then you need to be one of the following professionally:
- Dental specialist
- Oral Surgeon
Things to keep in mind
However, when you opt-in for this type of dentist loan, there are few things that you need to consider:
1. Few dentist mortgage loans have a high-interest rate. The disadvantage of not shelling out such lump sum money results in high-interest rates in the department of the dental home loan. There could be chances of refinancing along the way. As repaying a high mortgage might appear to be expensive to few. Renting for a span of time might make few dentists say yes to a down payment and discover a lower-interest-rate mortgage deal.
2. Dentist loans demand a high credit score. Some lenders are lenient in some aspects when they approve a dentist mortgage loan. However, in specific areas they are strict. If your credit score goes below 700, then you might not be eligible for this loan.
Generally, the dentist loans are adjustable-rate loans. The fixed rate mortgages might have the same interest rate for the total loan amount. ARM, i.e., the Adjustable-rate mortgages usually have a fixed rate time frame, before which the prices might start to adjust. It indicates when the interest rate goes up, as you’re out of the starting fixed period, the monthly payments go up as well. When you are aware of these aspects, you can apply for the dentist loans seamlessly.