Reach New Borrowers with the Medical Professional Home Loan
Newrez created the Medical Professional Home Loan, a product that gives brokers an in with this promising demographic. Young medical professionals represent a high-opportunity and underserved borrower segment in the mortgage market.
Young medical professionals represent a high-opportunity and underserved borrower segment in the mortgage market. They’re often on the cusp of high-earning careers, yet their early financial profiles often don’t align with traditional mortgage guidelines. Many enter the mortgage market with:
- Limited savings
- Significant medical school debt
- Income that doesn’t reflect their future earning trajectory
That’s why Newrez created the Medical Professional Home Loan, a product that gives brokers an in with this promising demographic.
Below is a breakdown of the program, the borrower profile and the advantages that make this loan a powerful addition to your product lineup.
Tapping Into a Promising Market
Medical professionals with advanced degrees often enter the workforce with a unique set of traits that can translate into meaningful opportunity for brokers:
High Future Income: Doctors and equivalent professionals usually benefit from strong income trajectories and stable careers. Their earning power tends to rise quickly, which could explain why lenders have reported low default risk by this borrower segment.1
Low Savings Early On: Years spent in school, residencies, internships and fellowships mean young medical professionals often have limited ability to save for a down payment. The income for these starter jobs doesn’t reflect their future income potential, which can make Conventional loan requirements a tricky fit for these borrowers.
Significant Student Loan Debt: Medical students are usually burdened with steep student loan balances, which is why these borrowers could benefit from a flexible loan calculation when qualifying for a mortgage.
Who the Medical Professional Home Loan is Designed for
This loan is designed for medical professionals with advanced degrees. To qualify, at least one occupying borrower whose income is used for approval must hold one of these degrees and be actively practicing in one of the following fields:
- Medical Doctor (MD)
- Doctor of Osteopathy (DO)
- Doctor of Dental Science or Surgery (DDS)
- Doctor of Dental Medicine (DMD)
- Doctor of Ophthalmology (MD or DO)
- Doctor of Psychiatry (MD or DO)
- Doctor of Pharmacy (PharmD)
- Doctor of Veterinary Medicine (DVM or VMD)
- Doctor of Podiatric Medicine (DPM)
- Certified Registered Nurse Anesthetist (CRNA with DNAP or DNP)
- Medical residents, fellows, or interns with one of the above degrees
Newrez’s Medical Professional Home Loan: A Breakdown
This loan program is built for early-career medical professionals who need flexibility now and have the long-term income potential to support homeownership.
Features*:
- Up to 100% financing for qualified applicants
- Traditional mortgage insurance not required
- Loan amounts up to $2 million, depending on eligibility
- Only available for primary residences and one unit properties (SF, PUD, condo, coop)
Program Benefits That Can Help You Close
- Student Loan Flexibility
We use favorable student loan calculations, helping borrowers with large medical school debt access homeownership. - Up to 100% Financing and No Traditional PMI
Ideal for early-career doctors who haven’t had the ability to save for a down payment. (Eligibility and program features may vary.) No mortgage insurance required — a major differentiator from Conventional financing. - Income Flexibility
Residents, fellows and interns can qualify using projected income rather than relying on historical earnings.
Build Borrower Relationships with Doctors
We’re excited to bring you a product that helps young medical professionals step into homeownership right as their careers take off. This is a prime opportunity to connect with a stable, high-income borrower segment and guide them past the short-term savings hurdles so they can leverage their long-term financial strength. To get started, reach out to your Newrez Wholesale AE.
References:
1KBRA Releases Research – What’s up, Doc – Medical Professional Mortgages, A New Niche in RMBS?
*Terms available will be dependent on a number of factors including borrower's credit score and loan-to-value ratio.
At least one borrower must meet professional designation and specified degree requirements. Only available for purchase and rate-and-term refinance transactions on select property types. Loan-to-value and credit requirements apply. May not be combined with secondary financing. Subject to minimum and maximum loan amounts. Contact Newrez for more information.