Physician loan to buy rental property?

Question

Anybody ever use or know if it is possible to use a physician loan(low to now down payment) to buy a rental property in California? Have looked briefly online, but only a few lenders appear to offer these in California.

Thank you for any information!

Eric Veronica · Answer

@Baxter Richardson physician loans  are always going to be portfolio which means that there will not be a standard set of rules like you would find with FHA, Fannie, VA etc.

White coat investor is a great outlet to find lenders in each state that offer physician loans. https://www.whitecoatinvestor.com/personal-finance...

Personally Physician loans are a big part of my business so I tend to follow the competition pretty closely and I have never seen an lender offering these for investors.

Scott D Burrows · Answer

@Baxter Richardson

Check with @Chris Mason he will know if it's possible or not, or what angle to work.

Also, he is in Oakland, so he should be able to lend to you. In addition, he is always on here helping people, so that is an asset to have a lender that is willing to help for no other reason then to help investors like us.

If you need to brainstorm with any other ideas, feel free to reach out, always happy to help.

Good Luck,

Scott

Sam Shueh · Answer

Check with hospital, Kaiser offers no-interest 10 year loan for all medical professionals.

Michael T. · Answer

@Baxter Richardson yes there are lenders in California that do offer physician loans.  I'm not sure if it's zero percent interest but as @Sam Shueh mentions Kaiser may have a program like this.

Basically the physician loans have a 0-15% downpayment, no prepayment penalties, no mortgage insurance requirement, and a relatively small increase in interest rates over standard mortgage loans.

You may be able to find more through the whitecoat investor website or through @Chris Mason a California lender.

Pete S. · Answer

@Baxter Richardson not sure about CA but there are Physician Loans for Duplexes up to Quads. You would have live in one of the units for a reasonable amount of time.  Just have to do your shopping. Check your credit unions and like @Sam Shueh said, with your hospital... BTW that is an awesome deal!

Stephanie Medellin · Answer

@Baxter Richardson  These programs are only for buying a primary residence.  One of the benefits is being able to omit student loans in forbearance or deferment from your debt to income ratio to help you qualify, and still have a low down payment.  I am not aware of any for investment purchases.

Harjeet Bhatti · Answer

@Baxter Richardson  Physician loan is for primary residence.

Justin Kane · Answer

check with the lender and see what the lending restrictions are and then figure out whether you want to be active investor or passive can you find the right vehicle to invest the money if it's not restricted

Robert W. · Answer

When we got a physician loan for our home purchase, BOA was very clear that this was only eligible for SFR that are owner-occupied.

So I guess you could use it to acquire more SFR's if you're willing to move from house to house. But not a good product for buying multi-families.

Dennis Tierney · Answer

I always thought they were supposed to be used for the medical practice. There is no reason you couldn't go to a local bank. As a doc. you're a good risk. If you are serious about real estate you'll want to develop relationships with local banks anyway. It'll be to you're benefit in the long run. I've done this 13.5 yrs. and a friendly banker is invaluable.

Physician loan to buy rental property?

Most Popular Reply