Doctor Loans for Optometry Professionals: Specialized Mortgage Options for ODs

1. Minimal Down Payment Requirements

While traditional mortgages typically require 20% down to avoid private mortgage insurance, doctor loans for optometrists often allow purchases with as little as 0 to 5% down. This proves particularly beneficial for new ODs who focused on education rather than accumulating savings.

2. No Private Mortgage Insurance (PMI)

A significant advantage of optometrist loans is the absence of PMI despite the low down payment. This can save hundreds of dollars monthly compared to standard low down payment options funds that can instead go toward student loan repayment or practice investment.

3. Student Loan Accommodation

Lenders offering OD loans understand the substantial student loan burden many optometrists carry often $150,000 to $250,000 or more. They typically employ more favorable calculations for optometry school debt when determining debt to income ratios, either excluding deferred loans or considering income based repayment amounts rather than standard repayment figures.

4. Contract Based Approval

Many doctor loan programs approve financing based on an employment contract rather than requiring an established employment history. This allows you to secure housing before starting your new position particularly valuable when relocating for your first associate position or when purchasing a practice.

5. Higher Loan Limits

Doctor loans typically offer increased loan amounts compared to conventional mortgages, allowing optometrists to purchase suitable homes that might otherwise require jumbo loans with stricter qualifying criteria.

Optimal Timing for OD Mortgage Solutions

These specialized mortgage options provide particular value at specific points in your optometric career:

• Recent Graduates When transitioning from optometry school to practice
• Residency Completion When finishing specialty training programs
• Associate to Owner When making the transition from employee to practice owner
• Practice Acquisition When purchasing an existing optometry practice

Considerations for Optometry Professionals

While doctor loans offer numerous advantages for ODs, several factors warrant consideration:

• Interest Rates Optometrist loans may carry slightly higher interest rates compared to conventional mortgages with larger down payments
• Practice Setting Corporate optometry, private practice, or medical setting affects income stability and growth
• Specialization Medical optometry versus retail focus impacts earning potential
• Geographic Market Significant regional variations exist in optometrist compensation

How to Apply for a Doctor Loan as an OD

1. Find Specialized Originators Seek mortgage originators with experience serving healthcare professionals, including optometrists
2. Prepare Documentation Gather your optometry license, employment contract or practice information, proof of education, and financial statements
3. Obtain Pre-approval Get preapproved before house hunting to understand your budget and strengthen your position when making offers
4. Compare Options Loan terms can vary significantly between programs (We have it all in one place by the way!).
5. Align with Career Plans Time your home purchase with career transitions for optimal financial benefit

Unique Considerations for Optometrists

As a Doctor of Optometry, certain unique factors may influence your mortgage decisions:

• Practice Ownership Models Independent ownership, franchise, partnership, or employee status
• Retail Component Product sales can substantially supplement clinical income
• Specialization Impact Specialized services like vision therapy, specialty contacts, or medical optometry
• Equipment Financing Substantial equipment investments may affect overall debt profile