For physicians who are looking to buy a home in Alabama, the process can be particularly challenging due to their unique financial circumstances.
According to Zillow, the median home value in Alabama is approximately $223,246 as of July 2023.
With extensive education and student loan debt, many doctors face financial hurdles that can make it difficult to secure a traditional mortgage. This is where physician mortgage loans come in. Physician mortgages allow doctors favorable terms and little to no money down.
How Do Alabama Physician Mortgages Work?
Physician loans, also referred to as doctor mortgages, are tailor-made for medical professionals, acknowledging their unique financial circumstances. These specialized loans offer advantageous terms like minimal or zero down payments, exemption from private mortgage insurance, and flexible debt-to-income ratios. What sets these loans apart is their consideration of a doctor's potential future income as a decisive factor for eligibility, rather than solely relying on their current income and debt situation. This approach recognizes that medical practitioners often possess significant earning potential but may currently grapple with substantial student loan debt, impacting their financial standing.
By factoring in these elements, physician loans aim to render homeownership more attainable for doctors who might otherwise struggle to qualify for conventional mortgages. For physicians looking to buy a home in Alabama, these loans present an opportunity to turn their dreams of homeownership into a reality.
Best Doctor Mortgage Loans in Alabama
Buying a home can be a daunting task, especially for physicians who have just completed their residency and are burdened with student loan debt. Physician mortgage loans have emerged as a popular option for medical professionals who are looking to purchase a home.
Doctor mortgages offer favorable terms, such as low or no down payments, no private mortgage insurance, and flexible debt-to-income ratios, making homeownership more accessible to physicians in Alabama.
Here are the best physician mortgage loans available to medical professionals in Alabama.
Synovus Bank ∂
Terms:
Financing up to $2 million on primary and secondary residences, purchase and refinances.
No down payment or Private Mortgage Insurance (PMI) required.
Projected income accepted if borrower is scheduled to begin new employment within 90 days of closing.
Eligible during first 10-years of licensed and practicing.
Eligible Professions:
MD, DO, DDS, DMD, DPM
Strengths:
100% to $1 Million
Primary and Secondary residences
Projected income used if scheduled to begin new employment within 90 days
Construction to Permanent mortgage available on Physician Mortgage
Subject to credit and underwriting approval. Allowable LTV dependent upon primary or secondary residence, combined loan amount, and risk level. Property appraisal required. Cash-out refinancing not available on secondary residences. Synovus Bank, Member FDIC. Loans subject to approval, including credit approval.
Liberty Federal Credit Union ∀
Liberty Federal Credit Union is a member-owned financial institution focused on returning value through innovative products and services. Liberty has been recognized on a state level by Forbes as one of Indiana’s best financial institutions. In recent years, the credit union has also received acclaim on a national level, including being named the nation’s Best Credit Union for Checking by Investopedia in 2021 and appearing on Newsweek’s list of America’s Best Banks in 2022.
Liberty Federal Credit Union excels in providing value through better loan options for borrowers. For instance, the credit union offers an uncommonly wide variety of mortgage options to ensure the best fit for its members. According to the American Credit Union Mortgage Association, Liberty FCU was the Midwest’s top credit union in 2021 total first mortgage originations.
Terms:
Program features:
No Private Mortgage Insurance (PMI)
100% financing up to $970,800 loan amounts
95% financing for $970,801 to $1,500,000 loan amounts
90% financing for $1,500,001 to $2,000,000 loan amounts
Purchases and rate/term refinances are eligible
Low credit score requirement of 680, plus free in-house credit repair
We are committed to offering your lowest rate. If you find a lower rate, we’ll match it.1
Receive a gift card worth up to $500 on closing! 2 Plus, pair your mortgage with your Liberty FCU checking account and debit card to receive a 1/8% APR interest rate discount. 3
Whether you just began your residency or you are an established physician, Liberty FCU is dedicated to helping you secure the home of your dreams.
This program is available to residents, fellows, new, and established physicians alike. 4 We will gladly work with you and your busy schedule. Pre-qualification can be done easily online or through email.
Loans are subject to credit review and approval. Closing costs may apply. Liberty FCU mortgage lending product availability may vary based on property location. A sample principal and interest payment on a (7)-year $500,000 adjustable-rate loan amount with a 3.500% interest rate (3.575% APR) is $6,719.93. Taxes and insurance are not included; therefore, the actual payment obligation will be greater. Actual interest rate may vary based on credit history. Additional rates and programs available. Visit us online for current rate information. Contact a Liberty FCU mortgage loan officer for more details.
1 Rate Match Guarantee available for new purchases and refinanced first mortgage loans of primary residences with conventional conforming financing. Certain product exclusions may apply. Loan Estimate from competing lender must be dated and received within three calendar days prior to locking your interest rate at Liberty FCU. The terms of the competing loan must be identical to Liberty FCU’s loan. If the loan does not close within the commitment period, the rate match may be voided. This offer is subject to credit approval and may change or terminate without notice. Offer is not applicable to government loans, including FHA, USDA, and VA financing. Not valid in combination with 1/8% rate discount. Product offerings may vary by state or region.
2 Gift card offer is available on financing of purchase or construction loans for primary residences only. Purchase or construction loan amounts up to $149,999 will receive a $250 gift card. Purchase or construction loan amounts of $150,000 or greater will receive a $500 gift card. Not valid in combination with any other offer.
3 Discount available on conventional conforming financing of purchases for primary residences only. Offer available for new primary mortgage loans and mortgage loans already established at Liberty FCU when refinanced with at least $10,000 new money. Closing costs may apply. Liberty FCU verifies the past checking history of applicants with ChexSystems, a national consumer reporting network. Information obtained from the report could result in checking account denial. Certain product exclusions may apply.
4 Available to residents, fellowship, newly established, or established physicians with MD, DO, DDS, DMD, OD, or DP credentials. Rates listed are specific to the Physician Loan mortgage program. Standard mortgage rates may vary.
PhysicianLoans
Read below to learn more about us. But if you are on a short time-line and are looking for information quickly, go to www.physicianloans.com, click on Get Started and take one minute to complete the short form. Tal will make sure that you get what you need right away.
PhysicianLoans originated as a family business in 1993 and after being a pioneer in the physician loan space, grew to become one of the most trusted brands for doctors. Our loan officers specialize in working with doctors and are true experts on financing for Doctors. Our team can assist you in 47 states
PhysicianLoans is an approved member benefit for the AMA, AOA and SOMA. We are a trusted name in home financing for doctors.
We are also more than just a place for rate shopping. If expertise, advice and customer service are important to you, always be sure to speak with a PhysicianLoans loan officer.
Visit www.physicianloans.com, click on GET STARTED, and take one minute to complete the short form. Or call us at 877-593-9313. We will be in touch quickly and get you what you need to successfully move forward.
Not a hard sales pitch. Just the advice and information you need.
Terms:
No Money Down, No PMI, 50% DTI, Special Underwriting, ARMs and Fixed
Eligible Professions:
MD, DO, DDS, DMD, DVM
Strengths:
Pioneers in this space, Best Customer Service, Experienced
Our home loan for Medical Professionals or Physicians was designed to help those in the medical profession achieve their dreams of homeownership. At The Federal Savings Bank, we are committed to finding the right mortgage for our customers, including those who are committed to save lives.
We understand your unique needs. You might have accumulated debt to become a healthcare professional, but we are here to help you! Our offering will help you buy a home early in your career, and sometimes even before you start your new job!
Terms:
0% down up to $1 MM loan amount
5% down up to $1.5 MM loan amount
10% down up to $2 MM loan amount
Min FICO – 660 (lower FICO will not affect your rate)
Owner occupied Primary Residence
1-4 unit residential property
Rental income can be used to meet DTI requirement
No MI
No Reserve Requirement
No Prepayment Penalty
ARM loan options
Can close up to 90 days prior to start of new job
Student loan payments deferred for 12+ months are not included in DTI
No limit on the number of years out of residency
Non-occupant co-borrower allowed
Gift funds allowed from family members
Up to 6% seller credit allowed
US Citizens, Permanent Resident Aliens, Work Visa
Min FICO – 660 (lower FICO will not affect your rate) – Can ask for exception for lower
Serving medical and healthcare professionals nationwide
Wide coverage of professionals – We value the contribution of healthcare professionals and want to support as many as possible to achieve the dream of homeownership
Qualify with few funds – low down payment & NO Reserves
Lower rate compared to a traditional mortgage
Program is open to all qualifying professionals regardless of years in practice
Loan available for Cash-out Refi as well (with lower LTV)
Subject to credit approval. Terms and conditions may apply. Property insurance is required for all loans secured by property.
The Federal Savings Bank | Co. NMLS# 411500 | All Rights Reserved | thefederalsavingsbank.com
Member FDIC | Equal Housing Lender
US Bank ††
Terms:
Residents with 6 months or less left in their residency or Fellowship programs who have accepted permanent positions or doctors that have completed residency within the past 10 yrs are eligible for the physician mortgage loan.
Clearly a strength is our product is more flexible than most of our peers. We have been able to help several physicians who were turned down elsewhere for the product recently. Allowing physicians to be greater than 10 yrs out of residency and still qualify has been helpful to many. The opportunity to provide 100% financing up to $1.5 million, and 95% financing up to $2 million, and 90% financing up to $2.5 million has been strong compared to competitors. Condos are allowable under the product.
My love of housing and serving my clients is my driving force! I have moved across this beautiful land of ours multiple times and the worst experience has been when the lender over-promised the close dates. Once I was delayed and had to stay in a hotel for 30 days until they fixed it. Unacceptable!
I have been driven in this industry over the past 19 years, to provide my clients with an experience that gets them into their new home on time this time and every time. Providing that comfort for all of my Doctors & Dentists is number one for me. South State Bank has allowed me to provide an excellent product for our medical professionals as well as the internal support staff to get the job done right the first time… to this we are committed! Our products accommodate citizens, green card holders or visa holders. We provide financing for primary and second homes with no PMI and we allow the client to close up to 120 days before they start their new position, with a signed employment agreement.
Terms:
0% down loan for primary homes with no PMI up to $1.25mm—(this is a new 100% loan limit)—- But, above that amount the breakdown is from $1.25mm to $1.5mm – 5% down and Above $1.5mm requires – 10% down…. (this includes newly constructed homes when they are finished)-
We offer all loan types but the doctor loan specifically allows you to buy a home like you’re mentioning at 0% down with no PMI and that allows you to future date your income even 120 days before you start work.
Eligible Professions:
MD, DO, DDS, DMD, DVM
Strengths:
We are committed to getting our clients in their homes by contract date every time! We make guideline exceptions for strong buyers and we accept Doctors with work Visa’s. We are particularly strong with self employed Doctors and Dentists and have lenient income guidelines for them.
WCI readers can get a 0.25% rate discount+ on mortgage lending with Laurel Road+. You could also save up to $650 off closing costs+. Explore no Private Mortgage Insurance (PMI) options+ with a Mortgage Loan Officer+. There is no Processing/Application Fee, a value of $1,095+.
Up to 95% financing options available. Ask about our competitive terms on rate/term and cash-out refinancing. NO PMI. Fixed rate and variable rate mortgages available. NO prepayment penalty. Only available when purchasing or refinancing with no cash out on a primary residence and loan amount does not exceed $1,000,000. Retired doctors are not eligible. Additional conditions and restrictions may apply.
Eligible Professions:
MD, DO, Resident, Fellows, DPM
Strengths:
Low fixed and variable APRs. Streamlined application and approval process. Available in all 50 states. Applicants may also receive up to $650 in closing cost credits. Laurel Road’s digital application is available 24-hrs per day for busy working professionals. See laurelroad.com
Notice: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. All credit products are subject to credit approval. Mortgage products are also subject to collateral approval. Mortgage products are available in all 50 U.S. states and Washington, D.C. Hazard insurance and, if applicable, flood insurance are required on collateral property. Actual rates, fees, and terms are based on those offered as of the date of application and are subject to change without notice.
1The interest rate discount of 0.25% is offered to borrowers who are active White Coat Investor readers and who are an intern, resident, fellow, doctor, clinical professor, researcher, or managing physician at the time of closing. To be eligible borrowers also must have a current medical license (as applicable) and have earned a Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), or Doctor of Podiatric Medicine (DPM) evidenced by a diploma. This 0.25% interest rate discount cannot be combined with other offers, except the Rewards Program. For Fixed-rate mortgages, the 0.25% rate discount is a permanent interest rate reduction that will be reflected in the Promissory Note interest rate. For adjustable-rate mortgages, the 0.25% rate discount will apply to the initial Fixed interest rate period and will be reflected in the maximum amount the interest rate can increase over the term of the loan, subject to the minimum interest rate that may be charged per the terms of the Promissory Note.
2Laurel Road offers up to $650 in lender's credit towards your mortgage closing costs. Credits cannot exceed borrowers' actual costs to close. For more information on how to obtain the $650 credit, refer to the Rewards Program information here.
395% financing is only available to interns, residents, fellows, doctors, dentists, clinical professors, researchers, or managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Podiatric Medicine (DPM), Doctor of Dental Surgery (DDS), or Doctor of Dental Medicine (DMD). Only available when purchasing or refinancing with no cash out on a primary residence and loan amount does not exceed $1,000,000. Retired doctors are not eligible. Additional conditions and restrictions may apply.
Only available to interns, residents, fellows, doctors, clinical professors, researchers, or managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), or Doctor of Podiatric Medicine (DPM). Retired doctors are not eligible. Additional conditions and restrictions apply.[/scroll-box]
Whether you are a first-time homebuyer or have purchased several homes, we support you in a way you have never experienced. Whether you need the one-on-one support with close attention or prefer to utilize our digital experience, you can feel confident knowing you have experienced professionals always on your side. We offer Purchase, Rate/Term Refi’s, Second Home loans up to 90%, Investor Loans and Construction/Rehab loans. FCM has financing programs to tailor a program that fits your financial goals.
Terms:
100% up to $1.25MM. 90% LTV 1.25MM to 1.5MM. Student loans not counted towards ratios.
Minimum credit score of 620. No PMI. No restrictions for time out of residency. Can close up to 90 days prior to employment start date. No Pre-payment penalty. Student loans omitted if deferred. IDR used if in repayment. Gift funds permitted for down payment and reserves.
We offer fully underwritten pre-approvals completed by seasoned underwriters. This allows us to offer a $5,000 21 day close on time guarantee. Set yourself apart from other offers in this tight housing market. We are the lender and decisions are made internally.
This information is offered for informational purposes only. It is not intended as a substitute for, or alteration of, any federal or state law or regulation, company policy, or provision of any written plan document or agreement between the company and any contracted provider. In the event of any inconsistency between information here and any federal or state law or regulation, company policy, written plan document or agreement, the provisions of the relevant law, policy, plan document or agreement will govern, and no person or entity shall be entitled to claim detrimental reliance on any information provided or expressed here. Effort has been made to ensure the accuracy of this information; however, the Company reserves the right to interpret any ambiguity arising from any information provided.
BMO Bank
BMO Bank has developed a class leading Physician & Dentist Mortgage Loan Program. The below Loan Officers have decades of experience not only in the mortgage industry but also working specifically with Physicians and Dentists. We are dedicated to ensuring a qualify experience to all buyers, from start to finish.
Loan Officer Info:
Please contact the listed Loan Officer based on the state in which you are purchasing.
Terms:
100% financing to $1MM, 95% to $1.5MM, 90% to $2MM, less than 10 years practicing(not including residency or fellowship) for down payments less than 10%. Primary Residence SFR, Condo, 2 unit properties eligible. Can close up to 90 days prior to employment start date with signed contract or signed offer letter. 30 year fixed rate options along with shorter term fixed and ARM’s. No PMI/MI. Rate/Term Refi or Purchase only. Gift funds allowed for down payment, closing costs, and reserves. We are now able to use 1099 contract income for doctors who have a guaranteed minimum salary in their contract without a 2 year history of income established as a 1099 employee. Must be actively seeing patients.
Eligible Professions:
MD, DO, DDS, DMD, Resident, Fellows
Strengths:
BMO Bank developed and began offering a physician loan program in 2015. The program has been expanding and growing for the past 8 years. All of the Loan Officers listed specialize in the physician loan product. These 4 loan officers have a wealth of knowledge and experience to handle any scenario imaginable. We can quickly determine what options are available within BMO’s loan options to structure a loan to fit your needs. We have dedicated processors and underwriters to ensure a smooth lending process and quick closing. We look forward to earning your business!
Choosing a Conventional vs Doctor Mortgage When Buying a Home in Alabama
If you've decided to buy a home, and you are committed to living in Alabama for more than five years, you should give serious consideration to putting 20% down and getting a conventional mortgage. The improved monthly cash flow will allow you a great deal of financial freedom and the ability to invest (and even spend). You'll save hundreds of thousands on interest over the life of the loan, all guaranteed, unlike investing a potential down payment elsewhere.
If you're going to buy a home in Alabama AND you can't or don't want to put 20% down, then a doctor mortgage loan is a reasonable option and at least as good as the other non-20%-down options.
When comparing conventional vs. doctor mortgages, physician loans do have lots of advantages, but those primarily revolve around easier underwriting requirements. A doctor mortgage can help you qualify for a loan you otherwise couldn't get.
Conventional mortgages are more difficult to qualify for, but there’s a reason for that. If you can qualify for a conventional mortgage, especially if you can make a sufficient down payment to avoid paying PMI, you’ll usually get a lower interest rate and fees. That means a lower monthly payment and a lower overall cost for your loan.
Moving from Alabama and Need a Doctor Mortgage in a Different State?
