Minnesota offers a high quality of life with its blend of vibrant cities and serene rural areas. In cities like Minneapolis and St. Paul, residents enjoy cultural attractions, diverse dining options, and a thriving arts scene. On the other hand, towns like Duluth offer picturesque views of Lake Superior and access to outdoor activities such as hiking, skiing, and fishing. With top-ranked schools, affordable housing options, and a strong sense of community, Minnesota provides an excellent environment for families and professionals alike.

Many of those professionals include dentists who operate practices across every part of the state. The Bureau of Labor Statistics tells us that Minnesota has around [total_Dentists state=”MN”] dentists currently,  making this Northern state a popular location for these medical professionals.

While Minnesota offers a good cost of living, housing prices are not cooperating. According to the FED, the median listing price of a single family home in the state is currently at $399,900. 

As housing prices continue to climb in Minnesota, dentists may encounter growing obstacles when it comes to buying a home. Dentist mortgages offer a remedy to this issue by offering advantages such as reduced down payments, help with closing costs, and adaptable eligibility criteria specifically designed for dentists.

What are the advantages of Minnesota dentist mortgages?

Opting for a dentist mortgage in Minnesota offers several tailored advantages to accommodate the specific needs of dentists statewide. Firstly, these specialized programs often boast reduced down payment requirements, particularly beneficial in urban regions where housing costs tend to be high. This lowered barrier to entry facilitates easier access to homeownership, especially for dentists managing student loan debt or other financial commitments.

Secondly, dentist mortgages in Minnesota frequently extend assistance with closing costs, alleviating the financial strain associated with purchasing a home. Given that closing costs typically range from 2% to 5% of the home’s purchase price, this support substantially reduces upfront expenses, allowing dentists to allocate their savings elsewhere.

Moreover, these programs typically feature flexible eligibility criteria, considering factors such as income stability, employment history, and credit score. This adaptability acknowledges the unique circumstances of dentists, many of whom maintain non-traditional work schedules or multiple income sources. By accommodating these variables, dentist mortgages ensure a broader spectrum of dentists can qualify for homeownership, fostering enhanced financial stability and assurance for healthcare professionals throughout the state.

How are Minnesota dentist mortgages different from other loans?

Dentist mortgages stand apart from traditional mortgage options by offering tailored benefits specifically catered to the needs of dentists. These mortgages often feature lower down payment requirements compared to conventional options, providing a significant advantage for dentists grappling with student loan debt or other financial obligations. This reduction in upfront costs facilitates easier access to homeownership, enabling dentists to realize their housing aspirations sooner rather than later.

These products can also include assistance programs tailored to healthcare professionals, encompassing benefits like closing cost assistance, reduced interest rates, or forgiveness programs for dentists serving in underserved areas. These perks acknowledge the invaluable contributions of dentists to the healthcare system and aim to support their journey toward homeownership amidst the unique financial challenges they often face.

When it comes to the application process, securing a dentist mortgage typically involves collaborating with lenders specializing in serving healthcare professionals. These lenders possess a deep understanding of dentists’ financial circumstances and can provide personalized guidance throughout the mortgage journey. Additionally, dentist mortgages often boast more flexible eligibility criteria, accommodating factors such as non-traditional work schedules or diverse income streams commonly found among dentists. This adaptability streamlines the application process and ensures that dentists can access the necessary financing to purchase a home without unnecessary obstacles.

Borrowers who have professional dental designation such as DDS, DMD, DMV or DMP may need to look into alternative loan programs in order to qualify. If you are someone who was already turned down for a traditional loan program because of problems in underwriting such as debt to income ratio, or you believe you wouldn’t qualify in the first place, you may wish to discuss loan amounts with a dentist mortgage loan officer. Mortgage lenders in the dental space operate similarly to those loans offered to medical residents or medical doctors, known as physician mortgage loans. These help medical professionals qualified to get primary residences.

You should always discuss the specifics for eligibility and underwriting, such as whether you can refinance in the future, maximum loan amounts, whether you can get by with no private mortgage insurance, any penalties for early repayment, loan limits, down payment options, whether you can qualify with an employment contract, and your overall loan payment/monthly payments. Much like medical doctors who use a physician home loan, you may be able to use your new job to help you qualify for these alternative loan options and get you closer to a home purchase.

Whether you find your dream home on the NMLS or with a realtor, you might not be able to get conventional loans even with strong employment prospects as a dentist or DPM. Just like medical doctors use a doctor loan/doctor mortgage to get approved when a conventional mortgage won’t work, dentists can use these alternative financing options to engage in the home buying process. Approval may vary based on whether you’re using an employment contract or will be self-employed. If you already tried using a conventional loan with somewhere like US bank or National Bank and were unable to get approval, you might need to look at loans specific to medical professionals like dentists, pharmacists, CRNAs, veterinarians, and medical doctors.

Examples of dentists who take out dentist mortgages in Minnesota

Do the scenarios below resonate with your situation as a working dentist in Minnesota? If they do, exploring the option of a dentist mortgage in Minnesota might be the ideal solution for your path to homeownership:

Dr. Thomas, an established dentist in St. Paul, has been an integral part of his community for years. Now, he’s ready to take the next step and plant roots in the city for the first time. Facing rising housing costs and limited choices, Dr. Thomas is exploring his options, with a dentist mortgage catching his eye as a potential avenue to turn his homeownership dream into reality. He’s optimistic that with the assistance of a dentist mortgage program, he can find a home that not only fits his budget but also complements his lifestyle. The program he settles on includes help with closing costs and a very low down payment requirement. 

Dr Emery has had a similar journey on the other side of the state. Working diligently in the scenic countryside of Minnesota, Elena has encountered hurdles in qualifying for a traditional mortgage due to her student debt. Contemplating the possibility of a dentist mortgage, Elena is hopeful that it will offer the financial backing and flexibility necessary to achieve her dream of homeownership in Minnesota’s tranquil rural environment. Fortunately, it proves to be the perfect fit, providing her with favorable terms and recognizing her commitment to serving in a rural part of the state.

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Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.