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Medical Financing in the Current Credit Crisis
By Jeff Rauth The reason is simple, Doctors are the best
credit risk and have the lowest default rates in the industry. In addition,
the national trends and demographics support the sector as well, i.e. with
the ageing baby boomers, and medical advancement in general. Medical Financing Medical financing for real estate purchase or
refinance comes in many different programs. For example, 90% financing with
10 year fixed rates is still common. 30 Year amortization though now rare
for general commercial mortgages, is still widely available for doctors that
want to keep monthly payments as low as possible. Getting a loan at 100% or
even over the value of the real estate, i.e. with a second loan in the form
of a line to 130% of the value of the real estate is still available as well
(Though we often warn borrowers not to get over leveraged). Interest rates are of course, very low within
this sector as well. Practitioners can expect to get the tightest margins
around as banks compete hard to win over medical borrowers. We are currently
seeing a 20 to 40 basis point reduction in rates for medical financing
compared to general commercial real estate loans. All in all medical practitioners should get
out and talk to a few non local sources as they often have options the local
banks simply do not have. There are several non depository lenders out there
that have long term fixed rates, high leverage and other unique programs. Content Directory - Home - Bookshelf
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