Referred to alternately as the “Pelican State,” the “Bayou State,” “Creole State,” and “The Boot,” Louisiana is home to a diverse array of cultures and the beautiful and unique city of New Orleans. It’s also home to cities like Shreveport. Its major sports teams and number of National Parks and historical sites make it a great place to live, including more than 12,000 active physicians. 

Though the state offers a varied housing market, the area of Greater Baton Rouge saw an 8.3% decline in May of 2022 in new listings. About 1,240 homes sold in the state that month and the median sale price was $252,000. Homes took, on average, 32 days to sell, according to Louisiana REALTORs, the state’s real estate association.

For doctors and dentists thinking about buying now, there are affordable days to do so, including the Louisiana physician mortgage loan program. 

This program enables qualified professionals to obtain a home loan with a low or no down payment requirement. Physician home loans are just one options for new doctors and medical residents, but it’s important to look at both the pros and cons for medical professionals.

Advantages/Disadvantages of Louisiana physician mortgage loans

There are lots of pros that come with Louisiana physician mortgage loans but, as with anything, a few cons, as well. The positive aspects of these mortgages are many, including the fact that they include special consideration for student debt. Additional checks in the “pro” column on these loans include high loan limits and relaxed underwriting that allows lenders to approve you on a loan before the ink is dry on your contract, in some cases. This helps qualifying doctors get a dream home from the NMLS without some of the challenges of regular loans or refinances.

Many residents might need to move to a new location for a position after residency is complete. This means that a refinance of existing property won’t make sense, but buying a new home may be ideal for that physician. Residents often come with high credit card and student loan balances, making it hard to get an approval from traditional banks.

All of that comes with some “cons.” For one, your interest rate may be higher than with a conventional mortgage. Your lender may also request that you open an account with them. That may be a savings account, a checking account, or another option; their goal with that is to keep your business in the long term. For healthcare professionals, carefully think through the loan repayment requirements when deciding whether or not to work with a physician loan mortgage company.

Should you use a Louisiana physician mortgage for your next home?

How can you decide whether or not a Louisiana physician mortgage is the best option for you? Start by assessing where you are in your career. If you are happy in your current position and plan on staying in your area for many years to come, a doctor mortgage will work well for you.

Also, consider the higher interest rates that can sometimes come with these types of mortgages. Is that something with which you are comfortable? Many doctors are, given that these loans are so generous in other aspects. By weighing these factors, you can make a more clear-eyed decision about your suitability for a doctor mortgage in Louisiana. 

Examples of doctors who take out physician loans in Louisiana

You may be surprised by the doctors and professionals in the Bayou State that are taking out physician loans. They are very likely just like you, and on similar trajectories. They range from those new to the field to professionals with decades of experience. 

An OB-GYN who doesn’t have a down payment

As an OB-GYN, Debra gets a lot of gratification from her work. She loves working at her office in New Orleans and is fond of her staff and her devoted patients. She and her spouse are ready to purchase a home, but prices in the Greater New Orleans region have been escalating. Twenty percent down on a conventional mortgage will wipe out their savings, and then some. A doctor mortgage gives Debra an easier way to access financing. In fact, she was able to qualify for 100 percent financing on her dream home. 

Physician who prefers stock investments and wants leverage

Rasheed has worked hard to establish a stellar reputation in pediatrics. After a decade in practice, he is one of the preeminent doctors in his part of Louisiana. With his great income and established job, he is a good candidate for a mortgage, but he doesn’t necessarily want to liquidate his investments to put a lot of money down on a home. Instead, he decided to go with a Louisiana physician loan with high limits and no money down required. 

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