Finding your dream home: A home loan designed for dentists | American Dental Association

Finding your dream home: A home loan designed for dentists

There are many financial benefits to homeownership, but you might be wondering how such a big purchase is possible, especially if you’re at the beginning of your dental career. You might think that having limited free time, high student loan debt and competing financial demands puts homeownership   out of reach.

Image of Laurel Road logoThe good news is that there are several financial products specifically designed for health care professionals that will help you get to your dream home. One option is a Dentist Mortgage. A home mortgage tailored specifically to dentists —a Dentist Mortgage might be a good option for saving money on your mortgage or home refinance. Here’s what you need to know and where to start with Dentist Mortgages.

Dentist Mortgages versus standard mortgages

What’s unique about Dentist Mortgage loans is that lenders usually analyze your overall financial health differently than they do with other mortgage programs. For starters, Dentist Mortgage loans have fewer restrictions than conventional mortgages and recognize the lender’s trust in medical professionals’ creditworthiness and earning potential. Most Dentist Mortgage loans allow you to have a higher-than-normal debt-to-income ratio, which means that you might be able to carry more debt, including student loan debt. Therefore, while you may have a relatively high debt-to-income ratio, you may have a better chance of being approved than you would on a traditional mortgage. This is an important advantage for those with student loan debt, as mortgage lenders typically consider total debt and don’t separate student loan debt out during the application process.

Photo of Ms. Derks
Ms. Derks

Dentist Mortgages usually don’t require private mortgage insurance (PMI), a requirement for traditional mortgages that can add hundreds of dollars per month on top of your regular monthly mortgage payments. They also offer options for dentists at different career stages, including those just beginning their careers, whereas traditional mortgages require higher levels of income and employment proof.

Already a homeowner? There are benefits to refinancing

Refinancing provides you with an opportunity to lower your interest, lower your monthly payment and/or pay off your debt faster by opting for a shorter term loan. If you are able to save, you could put the extra money toward retirement or savings goals.

In some cases, refinancing can help you turn the equity in your home into cash if you’re seeking to pay off education or tuition expenses, make home improvements or get rid of high interest credit card debt. If you already have a mortgage and are considering refinancing, you have the option to refinance into a new Dentist Mortgage, which may give you the opportunity to obtain a lower interest rate and receive other benefits from your financial institution. Refinancing is a big decision, so make sure to do your research and choose a lending partner that gives you the best rate and options to lower your overall mortgage costs.

Consider a Dentist Mortgage to get into your dream home faster

It’s understandable that many dentists, especially those just starting out in their careers, simply don’t have the time to start the homebuying process or are unsure if they’ll even be approved for a mortgage. Whether you are just starting your journey to homeownership or have a mortgage you’re thinking about refinancing, a Dentist Mortgage may be the right move for you.

What’s most important throughout this process is finding a mortgage that suits your needs and offers you the lowest total cost. And, always keep your financial goals front and center, which will help you make the right choice for your needs. By doing this, you’ll be moving into your dream home faster than you think!

About Laurel Road
Laurel Road is a digital banking platform and brand of KeyBank. As a preferred provider through ADA Member Advantage, Laurel Road provides Dentist Mortgages, allowing dentists the opportunity to get into their dream home faster, with greater ease and more financial peace of mind. Offering a personalized, simplified process for mortgages, and some of the best benefits such as, flexible terms, low interest rates, a digital application process and more. Laurel Road is a brand of KeyBank National Association. All products offered by KeyBank N.A. Member FDIC. NMLS # 399797. Equal Housing Lender. © 2021 KeyCorp® All Rights Reserved. Laurel Road is a federally registered service mark of KeyCorp. To learn more, visit www.laurelroad.com/ada

Ms. Derks, Head of Mortgage at Laurel Road, carries over 25 years of experience in the financial services industry. Prior to joining Laurel Road, she held strategic leadership roles in product management, sales management, knowledge management, operations and marketing for industry leaders like Citigroup, PHH, National City and PNC.

Dental Practice Success digital resource that features articles from experts with tips dentists need to maximize their business, their patient care and their satisfaction. Learn more at ADA.org/DPS.