There is a bit of seasonality to physician financial issues, but nowhere is this more evident than with home-buying in the Spring. We sent each of our recommended mortgage lenders a list of questions to answer to get specific information about each of their physician mortgage products. As you can see, there is quite a bit of variability from one to the next, so if a physician mortgage is something you want or need to use, then you'll need to do a little bit of work to see which is the best option for you. Remember that most lenders do not lend in every state, but there are multiple lenders for each state, so your first screen should be “who lends in the state I'm buying in?” So click on the map below first to get an idea of what is available to you before proceeding through the rest of the post.
Also, we dramatically underestimated how long this post would be (partly because there are so many options these days and partly because the agents were pretty wordy.) So we've heavily edited their responses such that this post is basically our writing, reducing the post from >10,000 words to just over 3,000. If compliance officers have a problem with something, let us know. Also, bear in mind that any information here is only current as of the date of publication, so, confirm important details with the lenders themselves.
The questions we asked were the following, including the last one just for fun. I've got to give the agents props–they were far less likely than the student loan refinancers to dodge that question!
- What are the terms of your physician mortgage product?
- What types of professionals qualify for your program?
- What is new with your company in the last 12 months?
- What do you see as your doctor mortgage product's strengths over its competitors?
- Which of your competitors do you admire most and why?
We had a great response and hope you find this helpful if you're in the market for a physician mortgage. Remember a doctor mortgage is a mortgage that doesn't charge you PMI despite putting down less than 20%.
The Best of Physician Mortgage Lenders and the Loans they Offer
TD Bank – David Edmondson/Stephanie Arcelay
Terms: 100% financing to $750,000, 95% financing to $1,250,000, loan options up to $1,800,000 with 10% down., SFR, CONDO, PUD, COOP (yes, they go to 100% on condos), flexible debt-to-income ratios, will accept future employment contract. make-sense underwriting exceptions.
Professionals: MD, DO, DPM, DDS, DMD, Fellows, 3rd year residents, 1st & 2nd year residents may qualify for 3% down/no PMI program
New: TD Bank has made a multi-million dollar investment in technology over the last 18 months including; New loan operating system – manages every aspect of the life of a loan from prospecting through to servicing, Roostify digital application software – reducing origination and processing time 37% with this new technology which is fully integrated with the new loan operating system, Launched the Doctor Loan (2019) and expanded the Construction Loan Product (Q4 2018)
Strengths: Flexible debt-to-income ratios. Make sense underwriting exceptions (We care about the physician and dentist community and recognize that just because a profile is “outside the box” doesn't mean we shouldn't finance that borrower). They DO NOT require a 2-year self-employment history on newly self-employed dentists and physicians (Very unique to TD Bank and especially helpful for the dentist community who want to buy homes when they buy practices and have trouble getting a residential mortgage because they don't have a 2-year history of self-employment). MedPro MLO David Edmondson – category and subject matter expert. Dedicated MedPro Operations Team – All doctor loans David Edmondson originates are processed, underwritten and closed by an operations team trained to handle physicians and dentists needs. We retain the servicing on all of our portfolio loans – doctors loans will not be sold off to random servicers where their escrows and payments can be compromised. TD created a dedicated role to manage the doctor loan channel.
Competitors: SunTrust has a very good doctor loan product with a good reputation in the medical community.
KeyBank Mortgage – Mike DeRaspe
Terms: 0%* down up to $750,000; 5%* down payment up to $1,000,000. 10%* down up to $1,500,000. Max loan size $3,500,000. NO PMI. NO Prepayment Penalty. Fixed rate and variable rate mortgages available. Loan options available for purchase, as well as rate/term and cash-out refinances.
Professionals: Residents, Fellows, MD, DDS, DMD, DPM, DO.
New: Close up to 90 days prior to your employment contract start date.
Strengths: Great rates, processing, and underwriting! Down payment, closing costs, and reserves may be gifted. Only 2 months reserves for loan amounts under $500K and 4 months reserves over $500K (additional 2 months required if closing before start date); retirement assets count. Loan servicing will be provided by KeyBank. Mike has specialized in doctor loans for the last 8 of his 18 years in mortgage lending, helping many doctors achieve homeownership.
Competitors: I appreciate my competitors specializing in Doctor loans. We understand the unique circumstances Doctors may possess, and dedicate ourselves to delivering the best financing solutions for your home purchase or refinancing.
*geographic restrictions may apply. Ask for details.
Mike (NMLS#470264) can be reached at [email protected]
First Citizens Bank – Valerie Leonard
Terms: No limit on years in practice for established physicians. Fixed rate and ARM options depending on loan amount and occupancy type. Primary residence – 100% financing up to $750,000; 95% up to $1,000,000; 90% up to $1,250,000; 85% up to $1,500,000. Second home – 90% financing up to $750,000; 80% up to $1,000,000; 70% up to $1,250,000. Construction to Permanent and Construction Renovation – 89.99% financing up to $850,000. Minimum credit score – 680. Eligible borrowers include US Citizens, Permanent Resident Aliens, and Non-Permanent Resident Aliens
Professionals: Medical resident, interns, fellows and practicing physicians with the following designations~ MD, DDS, OD, DP, DPM, DO, DMD, DCh
New: Hospital CEOs were added as qualifying borrowers
Strengths: We offer our program to all qualifying doctors regardless of years in practice. We also offer second home financing, construction to perm and renovation options under this program.
Competitors: I admire SunTrust for their outreach to the physician community. They have abundant educational material available to borrowers shopping for this type mortgage.
Valeria can be reached at [email protected]
Simmons Bank – Cade Crawford
Terms: Minimum credit score of 640 – 0% down up to $750K 5% down up to $1,000,000 10% down payment up to $1,500,000. No PMI and No Prepayment Penalty. ARM products include: 7/1 and 10/1
Professionals: Medical Residents, Fellows, Medical Doctors and Surgeons, Dentists, Oral Surgeons with the following designations: MD, DO, DDS, DMD
New:. Condos can qualify for this program with streamlined guidelines for condo eligibility at the same rates of single family homes.
Strengths: Great rates! Up to 2% of the closing costs and prepaids can be financed on loans up to $750k. Student loans in deferral are not counted in ratios, Income based repayment for student loans is also accepted. Close up to 60 days prior to employment date with an employment letter.
Competitors: We appreciate our competitors that specialize in Doctor loans. We have very competitive features and guidelines and while we can help in most situations, if not, we will be glad to refer to one of the other trusted lenders that may have what is needed to help you.
Cade can be reached at [email protected]
Laurel Road– Americo Mendes
Terms: Up to 95% financing. 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.
Professionals: 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).
New: Laurel Road’s digital application is available 24-hrs per day for busy working professionals. Laurelroad.com/whitecoatmortgage
Strengths: Applicants may receive up to $650 in closing cost credits. See laurelroad.com/mortgage
Competitors: All mortgage companies and banks that offer conventional and jumbo loans.
Americo (NMLS #108768) can be reached at [email protected]
All loans are provided by KeyBank National Association, Member FDIC and Equal Housing Lender. NMLS # 399797
Flagstar Bank – Nicole Smith
Terms: 0% down up to $850K; 5% down up to $1,000,000; 10% down payment up to $1,500,000. NO PMI. NO Prepayment Penalty. ALL 50 States.
Professionals: Medical Resident (Educational License), Medical Doctor (MD), Doctor of Dental Surgery (DDS), Doctor of Dental Medicine (DMD), Doctor of Optometry (OD), Doctor of Ophthalmology (MD), Doctor of Podiatric Medicine (DPM), Doctor of Osteopathy (DO), Certified Public Accountant (CPA), Attorney, Nurse Anesthetist, Nurse Practitioner, Registered Nurse, Clinical Nurse Specialist, Physician Assistant, Pharmacist, ATP Pilots, Veterinarian
New: Non-occupant co-borrowers now allowed and non-permanent resident aliens. Income based repayment for student loans used for underwriting rather than a percentage of outstanding principle.
Strengths: All funds (reserves & closing costs) can be gifted. Close up to 60 days prior to employment. We can submit a full file into underwriting without a purchase contract. We are very preemptive in the process. See reviews here.
Nicole can be reached at [email protected]
UMB – Doug Crouse
Professionals: Includes MD, DO, DDS, Doctor of Optometry, Doctor of Pharmacy, DMD, DVM, JD
New: This professional loan program is new
Strengths: 30 yr fixed rates available and no time limit out of school.
Competitors: I can't answer this one with any confidence as I don't know the service levels of my competitors. Even though my wife is a doctor we haven't personally done business with any of my competitors.
Doug can be reached at [email protected]
Loan Depot – David Henderson
Terms: 5% down to loans up to 1M, 10% down up to 2.5M, 20% down up to 3M. We offer 30 year fixed, as well as 5/1, 7/1, and 10/1 ARMS. We allow primary home purchases up to 4 units and purchases for a second home, although with more down payment.
Professionals: Physicians, dentists, attorneys, pharmacists, veterinarians and other professionals with student debt obligations.
New: We increased our availability of low down payment loans to allow 5% down up to 1.5M.
Strengths: I believe all lenders intend to make qualifying as easy as possible for doctors, but we have aggressive guidelines to allow them to qualify with lower reserves, lower fico scores down to 700, allowing rent on departing residences, and qualifying new doctors with as little as 1 year of self-employment.
Competitors: This is a hard one to answer because each loan officer I’ve talked to in different companies has such different programs. I very much admire those that allow a 0% down product and it is something I’m actively promoting to our company, albeit with higher loan amounts to allow a greater amount of doctors within CA to qualify.
David can be reached at
Bank of Oklahoma Financial, NA – Bo Brown
Terms: 3% down to $650,000, 5% down to $850,000, 10% down to $1,000,000.
Professionals: Doctors, Dentist, CRNA’s, and DNAPs, and H1B Visas.
Bo can be reached at [email protected]
Huntington Bank – Sandi Jameson-Frith
Terms: 0% down to $750K, 5% down from $750K-$1.25M, 10% from $1.25M to $2M. 15 year fixed or various ARMs. Credit score of 700 required, but as low 680 if 5% down.
Professionals: Physicians, dentists, and veterinarians
New: As noted in the terms section, we have new higher lending amounts.
Strengths: Our loan amounts are higher than most. We allow up to a 50% Debt to Income ratio and have lower credit score requirements than most.
Competitors: I admire ALL my competitors! I work with quite few that I am able to refer back to for states that I cannot lend in. It is great networking and I am confident that they will treat my clients just as professionally as I do.
Sandi can be reached at [email protected]
First National Bank Southwest – Michael Bruegel
Terms: 10% down. 720 or higher credit score, ARMs only (5/1, 7/1, 10/1). We also offer a 3% down option, but it requires PMI.
Professionals: Physicians and licensed dental surgeons
New: Loans can be “recast” where you put additional principal down to lower both balance and payments. Also offer a letter of intent with full loan approval even without a property address for no cost, good for 90 days.
Strengths: A family owned bank that can close quickly with lower rates due to lack of overhead seen with larger banks.
Competitors: BBVA Compass with their 5% down loan up to $750K
Michael can be reached at [email protected]
Frandsen Bank – Brandon Reinarts
Terms: 0%-10% down options, all ARMs, 700 minimum credit score with no employment start date restrictions. Student loans excluded from debt ratios.
Professionals: Physicians, dentists, veterinarians, pharmacists, optometrists, attorneys
New: New longer fixed rate periods for ARM mortgages (up to 15/1). Down payment amounts also decreased.
Strengths: Personalization and community bank feel. Borrower applies, closes, and makes payments to our bank and their main point of contact for the duration of the loan will be the person who took their loan application!
Competitors: I admire any of the ‘big banks’ because they are usually the ones with the ability to offer 30 year fixed rate products in-house and can offer higher loan amounts.
Brandon can be reached at [email protected]
Citizens Bank – Christopher Minear
Terms: Down payments start at 5% and loan amounts go up to $1.5M. Fixed mortgages from 10-30 years and ARMs from 3/1 to 10/1 available. We overlook student loan payments in qualifying for most residents and fellows.
Professionals: Physicians, dentists, podiatrists
New: Lower reserve requirements for residents, permit additional doctor loans, and upgraded our ability to make exceptions.
Strengths: Superior service, lower rates, favorable view of student loans in underwriting. I work exclusively with doctors.
Competitors: Great respect goes to Barb Reamer at Horizon Bank for her treatment of clients and the raving fans they become of both her and Horizon Bank.
Christopher can be reached at [email protected]
Lake Michigan Credit Union – Corbin Buttleman
Terms: 0% down to $650 (sometimes $1M), 5% down to $1M, 10% down to $1.25M, 20% down > $1.25M. 15-30 year fixed and 5/1-15/1 ARMs. Available for purchase, refinance, and construction.
Professionals: Physicians, dentists, podiatrists.
New: Changed a previous 15 year balloon loan to a 15/1 ARM.
Strengths: As a Credit Union, we offer lower rates and costs as well as a 3% checking account (up to $15K balance).
Competitors: I really do not have a competitor that I know well enough to comment.
Corbin can be reached at [email protected]
Washington Trust Mortgage – David Fay
Terms: 0% down up to $750K, 5% down up to $1.25M, 10% down up to $2M. Down payment and closing costs may be gifted.
Professionals: Physicians, dentists, podiatrists, and veterinarians
New: Only 2 months reserves required and portfolio loans for good borrowers and those outside traditional guidelines. W can also assist with non-warrantable condominiums, recently self-employed, and foreign nationals.
Strengths: 0% down and a fast approval process due to our “true team spirit” rather than a large bureaucracy.
Competitors: Sandi Frith of Huntington Bank. Sandi always puts the needs of her clients first. If there’s an option her client needs and she doesn’t offer it, she’ll put the client in touch with a lender that can assist.
David can be reached at [email protected]
University Federal Credit Union – Pedro Torres
Terms: 0% down to $453K, 5% down above $453K. Lower rates available with 10% down. 10, 15, and 30 year fixed, 5/1-8/1 ARMs.
Professionals: Physicians, dentists, pharmacists, nurse practitioners.
New: Gifted funds now allowed for loans up to $750K. NP and pharmacist availability.
Strengths: Low rates. Can close 90 days before start date. 30 day to close guarantee due to all in-house processing. In-house loan exception committee.
Competitors: Bank of America. Convenience, full-service banking and mortgage lending in all 50 states.
Pedro can be reached at [email protected]
Fifth Third Bank – Tony Lupescu
Terms: 0% down up to a $750K, 5% down to $1M, and 15% down up to $1.5 M. 15 and 30 year fixed and 5/1-10/1 ARMs. Don't count deferred student loans against DTI ratio.
Professionals: Physicians, dentists, podiatrists
New: 0% down option increased to $750K and 5% down increased to $1M. Now lending to dentists.
Strengths: Close 90 days prior to employment. 0% down options, 30 year fixed option. 680 minimum credit score requirement (with 5% down). We frequently close in less than 30 days.
strong>Competitors: Bank of America because they can do the physician loan in all 50 states.
Tony can be reached at [email protected]
First National Bank – Kenneth Roos
Terms: 0% down to $650K, 5% down to $800K, and 10% down to $1M. 10-30 YEAR FIXED, 7/1-15/1 ARMS. Purchase or refinance.
Professionals: Physicians, dentists, veterinarians
New: Now exclude deferred student loans from underwriting.
Strengths: Construction/permanent financing with only 10% down.
Competitors: I admire Fifth Third Bank as a competitor. They are in the same footprint as we are and are very competitive on the rate.
Kenneth can be reached at [email protected]
Physician Group at Neo Home Loans – Josh Mettle
Terms: 100% financing options available with fixed or adjustable terms for clients with 700 credit score or better and solutions with minimal down payments for medical professionals with credit scores down to 640.
Professionals: Multiple physician and medical professional loans, solutions available for anyone with a professional medical designation.
New: Can now help 1099 independent contractors with no previous experience as self-employed, 100% loan to value to $750k and 90% loan to value up to $2M loan amount.
Strengths: The biggest challenge in the mortgage industry right now is speed to close, with housing inventory at an all-time low, we’ve focused on helping our clients close their loans in as little as 17 days (depending on the program and down payment amount)
Competitors: There are so many great loan officers who are dedicated to serving their physician clients, Neil Surgenor with TD Bank is certainly amongst the best of the best.
Josh can be reached at [email protected]
Whew! That was quite the list. I hope you find this resource helpful as you search for a physician mortgage and if you need a realtor too, check with our partner Curbside Real Estate for a recommendation.
What do you think? Have you purchased a physician mortgage? Who did you use and what was your experience like? Who else did you consider and what made your decision? Comment below!