Locum Physician Loan: 0% to ten% Down for 1099 Physicians

Key Takeaways:

  • A locum physician loan supplies many advantages, together with low down cost choices, no non-public loan insurance coverage (PMI) and top mortgage limits.
  • Some doctor loan lenders are extra 1099-friendly, permitting locum docs to qualify with an employment settlement or fewer years’ value of tax returns.
  • Locum physician loan loans have extra comfy underwriting standards and extra favorable pupil mortgage remedy than a traditional mortgage.

About one-third of physicians have labored locum tenen positions, in line with CompHealth. Whether or not you’re a contemporary grad trying out the waters or a extra long-term rotating locum physician taking part in the versatility of your time table, chances are you’ll run into problems when on the lookout for a loan. Lenders could have strict revenue historical past necessities and different house purchasing obstacles, akin to offering a big down cost.

On the other hand, thank you in your stage and occupation, you could possibly benefit from an unique house financing program referred to as a health care provider loan. You may nonetheless have some hurdles in the event you earn an unbiased contractor revenue, however some lenders are extra 1099-friendly.

Learn on to be informed concerning the more than a few advantages and stumbling blocks of having a locum physician loan.

What’s a locum physician loan mortgage, and what are the demanding situations?

A locum physician loan mortgage can give 1099 physicians with particular house financing alternatives that aren’t to be had to most people. Those doctor loan techniques include down cost choices as little as 0% and no non-public loan insurance coverage (PMI) requirement — amongst different unique doctor loan advantages together with:

  • Upper mortgage limits with no jumbo mortgage rate of interest spike.
  • Exclusion of pupil mortgage debt out of your debt-to-income ratio (DTI) or a changed calculation the use of your exact income-driven compensation (IDR) per 30 days cost.
  • Versatile revenue historical past necessities that get advantages citizens and physicians beginning new positions.
  • Numerous mounted charge and variable charge loan choices with aggressive rates of interest (a few of that are these days less than standard loan charges).

Conventional loan techniques most often require no less than two years or extra of 1099 revenue and tax returns for self-employed debtors to turn out their revenue is constant and dependable. This can also be a disadvantage for seasoned physicians who’ve just lately transitioned into unbiased contractors, in addition to new physicians keeping over in a locum tenen position till the fitting full-time place comes alongside.

Thankfully, some lenders acknowledge those further obstacles to being self-employed and are keen to paintings with 1099 physicians to shop for a brand new house.

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