What to Know About Physician Mortgage in Los Angeles City, CA
December 20, 2023
Are you a physician who is planning to buy a home for the first time? Obtaining a physician mortgage in Los Angeles City, CA could be the key to your dream home in this bustling community. More than just a simple loan, a physician mortgage is a tailored solution to ease the unique financial challenges faced by doctors.
Whether you're a new practitioner or a seasoned professional, these mortgages offer favorable terms and recognize the distinctive financial landscape of doctors. However, a
physician mortgage is just one-half of the equation. If you want to maximize your options as a first time home buyer, you need to collaborate with the best realtors in Los Angeles, CA who specialize in physician mortgages.
Why You Should Get a Physician Mortgage in Los Angeles City, CA as a First Time Home Buyer
For first-time homebuyers, buying a home is both an exciting and stressful experience. When it comes to securing a mortgage, the choice between a physician mortgage and a traditional loan can significantly impact the ease and feasibility of achieving this milestone.
Here’s how obtaining a physician mortgage in Los Angeles City, CA can make a world of difference in your experience:
- Lower Down Payment
- Physician Mortgage: Saving up for a down payment is often hard for people who are buying their first home. A physician mortgage provides a sense of ease with its typically lower down payment requirements compared to traditional loans. This makes it easier for first-time homebuyers, like new doctors with student loan debt, to move from renting to owning a home with a more manageable upfront cost.
- Traditional Mortgage: Traditional loans usually require a bigger down payment, which makes it harder for first-time buyers. This financial challenge is a common scenario for individuals who are just starting their careers and have limited savings.
2. Student Loan Considerations
- Physician Mortgage: Physician mortgages take into account the burden of student loans that many medical professionals carry. Lenders recognize the significant commitment that physicians make to their education and take this into account when assessing their financial situation, making it easier for first time home buyers to meet the requirements for a mortgage.
- Traditional Mortgage: Conventional loans may not provide the same level of consideration for student loan debt. Often, traditional loans have requirements that apply to everyone, regardless of their profession. This makes it more challenging for doctors with large student debts to qualify for a loan.
3. Competitive Interest Rates
- Physician Mortgage: Doctors often benefit from competitive interest rates with a physician mortgage. This type of loan recognizes the earning potential of medical professionals and provides a financial advantage to first time homebuyers in the medical field.
- Traditional Mortgage: While interest rates on traditional loans may vary, the competitive advantages offered to physicians through specialized mortgages can make a significant difference in the overall cost of homeownership.
Overcome the Challenges of Homebuying with the Best Realtors in Los Angeles City, CA
Although it's tempting to think that a medical degree is a golden ticket to securing a home loan, this isn't always the case for doctors, especially new graduates and first time home buyers in Los Angeles City, CA.
Debt-to-Income Ratio Dilemma
If you work as a doctor and make a good living, you might think that getting a home loan would be easy. Traditional home loans, on the other hand, often penalize first time home buyers who have more debt compared to their income. Doctors often find themselves in this situation, especially new graduates and first time home buyers with significant student loans.
Lisa Kirshner Properties is a team of the
best realtors in Los Angeles City, CA who can help physicians navigate these complexities. They are experts in finding tailored solutions through specialized physician mortgage options. With the esteemed DRS Agent designation, Lisa Kirshner Properties is the ideal choice for doctors who are first time home buyers in Los Angeles City, CA.
Unstable Employment Status
Unlike many other professions, physicians often face a delay in securing long-term employment. Residency periods and getting specialized training can lead to a lack of a stable, permanent job at the time of applying for a home loan. Conventional lenders see this as a potential risk, which can add more complexity to the loan approval process for doctors.
Lisa Kirshner Properties helps first time home buyers in Los Angeles City, CA make the most of a physician mortgage and find real estate opportunities that suit their needs. The team’s expertise is valuable in navigating the challenges of securing a home loan while in transition, providing physicians with the support they need to make their homeownership dreams within reach.
Limited Savings
Another factor working against physicians in the home loan approval process is the challenge of accumulating savings. Medical professionals, especially those in the early stages of their careers, may find themselves with little to no savings. The demands of medical school and residency can leave little room for building a financial cushion and make it challenging to meet the typical down payment requirements for traditional home loans.
Lisa Kirshner Properties understands the unique financial challenges physicians face and can guide them towards options that align with their specific circumstances.
Your Dream Home is In: Make Your Move to Homeownership
California is a state that recognizes the value of doctors in the community. From offering loan forgiveness to mortgages specially designed for physicians, the state makes it possible for doctors to achieve homeownership.
Take advantage of a physician mortgage with the
best realtors in Los Angeles City, CA
to expand your options and make your homeownership goal a reality.
Welcome, September! As September begins in Los Angeles, we’re stepping into one of the most exciting times of the year for real estate. With the new NAR settlement coming into play and the summer rush winding down, it’s an ideal moment to review recent market trends and anticipate the opportunities the fall season offers. Whether you’re thinking about buying, selling, or just staying informed, I invite you to join us for our Buyer/Seller seminar on Thursday, September 19th. Let’s explore what September has in store and how you can capitalize on the current real estate market. Plus, I’m sharing a few of my favorite highlights from my recent trip to Montauk—keep scrolling to discover them! Wishing you all the best, -Lisa & Dylan
Hello, Sunny August! After June Gloom stretched into July, we are thrilled to welcome August’s clear blue skies! July was a busy month for us at LKP, with 2 properties sold, 2 new listings, and 1 in escrow. July was fantastic, and so is the real estate market! We also launched our new instagram video series, be sure to check it out at @lisa.kirshner and @dylan.elkin. In this edition, we’ll spotlight some of LA’s trendiest food spots, explore the latest market trends, and offer tips to help you navigate our dynamic real estate landscape. Whether you’re eyeing a hip spot in Silver Lake or dreaming of a beachfront retreat in Santa Monica, this month’s newsletter will help you stay ahead of the curve and find the perfect opportunity. Wishing you all the best, -Lisa & Dylan
Start your LA real estate journey in 2024. Work with a top realtor from Lisa Kirshner Properties. Expertise in the LA real estate market and DRS loans.
"Kindness is the universal language that can be spoken by everyone"
Each year, homeowners planning to make a move are faced with a decision: sell their house during the holidays or wait. And others who have already listed their homes may think about removing their listings and waiting until the new year to go back on the market. The truth is many buyers want to purchase a home for the holidays, and your house might be just what they’re looking for. Here are five great reasons you shouldn’t wait to sell your house. 1. While the supply of homes for sale has increased this year, there still aren’t enough homes on the market to keep up with buyer demand. As Nadia Evangelou, Senior Economist & Director of Forecasting at the National Association of Realtors (NAR), explains: “There’s still this gap between demand and supply because we were underbuilding for many years. . . . So now we see demand is slowing, but it still outpaces supply.” 2. Serious homebuyers are out looking right now. Millennials are driving homebuying demand today, and many are eager to make a purchase. Mark Fleming, Chief Economist at First American, explains: "While not the frenzy of 2021, the largest living generation, the Millennials, will continue to age into their prime home-buying years, creating a demographic tailwind for the housing market.” 3. The desire to own a home doesn’t stop during the holidays. In fact, homes decorated for the holidays appeal to many buyers. Plus, purchasers who look for homes during the holidays are ready to buy. 4. You can restrict the showings in your house to days and times that are most convenient for you. That can help you minimize disruptions, which is especially important this time of year. 5. Rents have skyrocketed in recent years. And, many buyers are looking to escape rising rents and avoid falling into the rental trap for another year. As an article from Zillow says: “Over the next 12 months, rents are expected to grow more than inflation, the stock market and home values." Your home could be their ticket to leaving renting behind for good. Bottom Line There are still many reasons it makes sense to list your house during the holiday season. Let’s connect to determine if selling now is your best move.
4 Things That Help Determine Your Mortgage Rate If you’re looking to buy a home, you probably want to secure the lowest interest rate possible for your home loan. Over the last couple of years, that was easier to do as the housing market saw record-low mortgage rates, but this year rates have risen dramatically. If you’re looking for ways to combat today’s higher rates and lock in the lowest one you can, here are a few factors to focus on. Since approval opportunities can vary, connect with a trusted lender for customized advice. Your Credit Score Credit scores can play a big role in your mortgage rate. Freddie Mac explains: “When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely. Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate.” That’s why it’s important to maintain a good credit score. If you want to focus on improving your score, your trusted advisor can give you expert advice to help. Your Loan Type There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says: “There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.” While overall interest rates have increased, there remains a misconception about the status of jumbo mortgage rates. As a reminder, jumbo loans are those greater than $647,200 (smaller loans are called “conforming”). Recent articles in the Wall Street Journal and Bloomberg lament mortgage rates reaching 7%, but they are referring to conforming loans. Rates for jumbo loans are actually much lower. When working with your real estate advisor, make sure you find out what’s available in your area and which types of loans you may qualify for. Your Loan Term Another factor to consider is the term of your loan. Just like with location and loan types, you have options. Freddie Mac says: “When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.” Depending on your situation, the length of your loan can also change your mortgage rate. Your Down Payment If you’re a current homeowner looking to sell and make a move, you can use the home equity you’ve built over time toward the down payment on your next home. The CFPB explains: “In general, a larger down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can comfortably put 20 percent or more down, do it—you’ll usually get a lower interest rate.” To learn more, connect with a lender to find out the difference a higher down payment can make for your new mortgage. Bottom Line These are just few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Connect with a local real estate professional and a trusted lender so you have the expert advice you need in each step of the process.
What Are Experts Saying About the Fall Housing Market? The housing market is rapidly changing from the peak frenzy it saw over the past two years. That means you probably have questions about what your best move is if you’re thinking of buying or selling this fall. To help you make a confident decision, lean on the professionals for insights. Here are a few things experts are saying about the fall housing market. Expert Quotes for Fall Homebuyers A recent article from realtor.com: “This fall, a more moderate pace of home selling, more listings to choose from, and softening price growth will provide some breathing room for buyers searching for a home during what is typically the best time to buy a home. ” Michael Lane, VP and General Manager, ShowingTime: “Buyers will continue to see less competition for homes and have more time to tour homes they like and consider their options.” Expert Quotes for Fall Sellers Selma Hepp, Interim Lead of the Office of the Chief Economist, CoreLogic: “. . . record equity continues to provide fuel for housing demand, particularly if households are relocating to more affordable areas.” Danielle Hale, Chief Economist, realtor.com: “For homeowners deciding whether to make a move this year, remember that listing prices – while lower than a few months ago – remain higher than in prior years, so you're still likely to find opportunities to cash-in on record-high levels of equity, particularly if you've owned your home for a longer period of time.” Bottom Line Mortgage rates, home prices, and the supply of homes for sale are top of mind for buyers and sellers today. And if you want the latest information for our area, let’s connect today.
The talk of a housing bubble in the coming year seems to be at a fever pitch as rising mortgage rates continue to slow down an overheated real estate market. Over the past two years, home prices have appreciated at an unsustainable pace causing many to ask: are things just slowing down, or is a crash coming? To answer this question, there are two things we want to understand. The first is the reality of the shift in today’s housing market. And the second is what experts are saying about home prices in the coming year. The Reality of the Shift in Today’s Housing Market The reality is we’re seeing an inflection point in housing supply and demand. According to realtor.com, active listings have increased more than 26% over last year, while showings from the latest ShowingTime Showing Index have decreased almost 17% from last year (see graph below). This is an inflection point for housing because, over the past two years, we’ve seen a massive amount of demand (showings) and not enough homes available for sale for the number of people that wanted to buy. That caused the market frenzy. Today, supply and demand look very different, and the market is slowing down from the pace we’ve seen. This offers proof of the sudden slowdown so many people are feeling.
If you’re thinking about buying a home today, there’s welcome news. Even though it’s still a sellers’ market, it’s a more moderate sellers’ market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered may be coming to a close. Today, you should have less competition and more negotiating power as a buyer. That’s because the intensity of buyer demand and bidding wars is easing this year. So, if bidding wars were the biggest factor that had you sitting on the sidelines, here are two trends that may be just what you need to re-enter the market. The Return of Contingencies Over the last two years, more buyers were willing to skip important steps in the home buying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving the inspection and appraisal. The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey from realtor.com confirms more sellers are accepting offers that include these conditions today. According to their August study: 95% of sellers reported buyers requested a home inspection 67% of sellers negotiated with buyers on repairs as a result of the inspection findings This goes to show buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection. Bottom Line Regardless of the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting in our area, let’s connect.
According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months. And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession? Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today. A Recession Doesn’t Mean Falling Home Prices To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.
