Located within the heart of the South, Tennessee, known as the “Volunteer State,” offers a diverse tapestry of landscapes and communities. From the vibrant city life of Nashville, home to the country music scene, to the historical charm of towns like Franklin and Gatlinburg nestled in the Great Smoky Mountains, Tennessee beckons with its rich cultural heritage and scenic beauty. Residents enjoy a blend of southern hospitality, outdoor adventures in places like Chattanooga and Knoxville, and a thriving culinary scene that celebrates the state’s diverse flavors. Whether you’re drawn to the bustling urban centers or the tranquil countryside, Tennessee welcomes you with open arms and promises an enriching living experience.

In fact, Tennessee is home to 1,450 dentists, according to data from the Bureau of Labor Statistics. Despite the varying cost of living across the state, housing prices are steadily climbing. The median listing price for a single-family home hovers around $427,450, as reported by the FED. 

For many Tennessee dentists, particularly those burdened by significant student debt or seeking homes in more expensive areas such as Nashville, affording a home independently can be challenging. In such cases, dentist mortgages present a viable solution, providing favorable financial terms and leverage in competitive markets.

How do Tennessee dentist mortgages work?

Tennessee Dentist Mortgages operate similarly to traditional home loans but come with tailored benefits for dentists. To secure one, follow these steps:

Investigate Dentist Mortgage Programs: Begin by exploring the various dentist mortgage programs available in Tennessee. Look for options offering dentist-specific benefits such as reduced down payments and support with closing costs.

Evaluate Your Eligibility: Assess whether you meet the eligibility criteria for dentist mortgages. These criteria are often more accommodating than those for traditional loans, considering factors like employment history, income stability, and credit score.

Examine Program Advantages: Delve into the unique benefits provided by dentist mortgage programs. Some programs offer perks like forgiveness initiatives for dentists working in specific regions, no down payments, or even no PMI. 

Connect with Lenders: Network with lenders offering dentist mortgage programs to understand their specific requirements and offerings. This interaction can help you explore available options and find a program aligned with your needs. To aid in the process, we’ve compiled a helpful list of Tennessee’ top lenders for your convenience.

Make an Informed Choice: After thorough research and discussions with lenders, you’ll be equipped to make an informed decision about whether a dentist mortgage aligns with your homeownership objectives and financial circumstances in Tennessee.

Is a Tennessee dentist mortgage right for me?

Determining if a dentist mortgage is suitable for you involves considering various factors, including your debt-to-income (DTI) ratio and your desire for leverage in the marketplace.

What is your DTI like? Many dentists have a good deal of student debt. Calculate your DTI ratio by dividing your total monthly debt payments by your gross monthly income. A high DTI ratio may indicate that you’re already heavily indebted, which could affect your ability to afford a mortgage. However, some dentist mortgage programs are designed to accommodate higher DTI ratios, considering the potential future income growth of dentists. If your DTI ratio is manageable and you anticipate your income increasing over time, a dentist mortgage might be a viable option.

You will also want to consider your goals in the real estate market and whether you’re looking to leverage your finances for investment purposes. Dentist mortgages often offer advantages like low down payments and competitive interest rates, allowing you to preserve capital for other investments or to expand your real estate portfolio. If you’re seeking to maximize your leverage in the marketplace and capitalize on opportunities for growth, a dentist mortgage could provide the financial flexibility you need.

Finally, consult with lenders who specialize in dentist mortgages to gain insights into their offerings and requirements. Discuss your financial situation, long-term plans, and preferences to determine if a dentist mortgage is a good fit for you. Lenders can provide personalized guidance and help you understand the advantages and potential drawbacks of pursuing a dentist mortgage.

Ultimately, deciding if a dentist mortgage is right for you involves weighing your financial circumstances, homeownership objectives, and investment goals. By carefully assessing these factors and seeking guidance from financial professionals, you can make an informed decision that aligns with your needs and aspirations for a new home. With alternative home financing options available for healthcare professionals, such as physician mortgage loans/doctor mortgage loans for medical doctors, you can explore your options with a loan officer.

Many medical professionals, including dentists with a designation like DDS, DVM, DMD, or DPM, have trouble getting approved for conventional mortgages. The same challenge faces interns, medical residents, pharmacists, veterinarians, and podiatrists. Typical mortgage products don’t allow for much discretion from strict rules on the loan application. Instead, these medical professionals can use alternative mortgage products based on the income from their new job to qualify.

If you have a lot of student loan debt and are unable or interested in refinancing an existing property, home buying can be difficult with only conventional mortgages. When you look at various lenders, compare factors of each loan so you can narrow down to your perfect fit. That includes things like:

• No private mortgage insurance/PMI requirements or amounts
• When you can refinance
• Maximum loan amounts
• Debt to income ratio/DTI
• Down payment options for your financial needs
• Fixed rate vs adjustable-rate mortgage
• Start dates for your employment contract
• Credit score
• Total loan payment over time
• If self-employed dentists can use the program
• Monthly payments

• If these loans are only available for a primary residence
• Other underwriting expectations

If you are a dentist who was already unable to get approved for conventional loans with FDIC lenders like Truist, US Bank, Keybank, Fifth Third Bank, or First National Bank, you may be able to use your new job and employment contract to apply with a mortgage lender. Very similar to a physician home loan, the debt to income ratio may be different for dentist mortgages, allowing borrowers to find their dream home.

Examples of dentists who take out dentist mortgages in Tennessee

Do these scenarios resonate with you? If so, you might be an excellent candidate for a dentist mortgage in Tennessee:

Dr. Emily Nguyen has a thriving practice in a suburban area outside of Nashville, and had recently sought to expand her business to accommodate her growing clientele. The process had dinged her DTI and now, despite her successful practice and strong cash flow, Dr. Nguyen was finding it hard to qualify for a traditional mortgage due to their stringent lending criteria and limitations. Faced with this challenge, Dr. Nguyen explored alternative financing options and discovered the benefits of a dentist mortgage. With its accommodating terms and consideration of her future earning potential, the dentist mortgage provided Dr. Nguyen with the financial flexibility she needed to realize her vision of expanding her practice and securing a new property.

Dr. Michael Thompson, an experienced dentist serving rural areas of Tennessee, was ready to leverage his financial resources to capitalize on lucrative real estate opportunities in the competitive Tennessee market. Recognizing the limitations of traditional mortgages and desiring to maximize his purchasing power, Dr. Thompson explored the advantages of a dentist mortgage. With their tailored benefits catering to the unique needs of dental professionals like him, such as reduced down payments and favorable terms, these products gave Dr. Thompson the leverage he needed to expand his real estate portfolio strategically and solidify his financial future. 

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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.