You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.
JD MORTGAGE® connects you with lenders offering low to no down payment mortgages designed specifically for high-income professionals. We find the lenders that allow jumbo loan balances, relaxed debt-to-income ratios and typically do not require private mortgage insurance (PMI).
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best mortgage for your home financing needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
Nicknamed the Yellowhammer State after its state bird, Alabama is home to a diverse collection of wildlife as well as over 5 million Americans. In addition to being emblematic of the South, it has also been the scene of some of the country’s most pivotal historical moments, such as the Selma march for civil rights in 1965.
Alabama is also growing in popularity as a residence for many professionals, including medical doctors. The latest numbers from the American Association of Medical Colleges indicate that Alabama is home to 10,614 active physicians. Those physicians are spread across the state from Huntsville to Dothan.
For many, Alabama is a great place to settle down and purchase a home. With median prices around $318,000, according to the Alabama Association of Realtors, many professionals in the Yellowhammer state may find themselves well positioned to afford a home.
Doctors and dentists who practice in Alabama (and certain other high-earning professionals) can take advantage of physician mortgage loan programs, allowing them to purchase a home without a down payment to get their start in healthcare and homeownership. Like other home financing, you’ll need to review terms for loan repayment and interest rates, but your job reference is also very important considering it’s the proof that you have the future income to make monthly payments later.
While physician mortgage loans provide many professionals with the help they need to purchase a home, it is always worth it to weigh the pros and cons when making such a serious financial commitment.
The pros that come with Alabama physician loans, include:
What are some of the cons involved? Those considering applying for an Alabama physician loan should consider that they can involve:
In some scenarios, applicants could also purchase more house and incur more debt than they should, tempted by the higher limits on these financial products.
If you’re ready to check out the top physician mortgage lenders in Alabama, here are the best options we’ve found through our research.
• Online
usually responds within 30 minutes
Medical doctor (MD/DO); Oral Surgeons (OMS), Podiatrist (DPM)
$500M+ Closed Loans
First Horizon Bank has one of the hottest doctor mortgages available as they can lend up to $1.5 million at 0% down.
Being able to lend such a large amount at 0% down is particularly helpful in states like New Jersey, New York and Texas where home prices have risen sharply in the past decade. The only downside is that the program has strict eligibility requirements and folks like dentists and lawyers aren't eligible. [ Read Review ]
Medical doctor (MD/DO); Oral Surgeons (OMS), Podiatrist (DPM)
| Down payment | Financing |
|---|---|
| 0% | up to $1.5 million |
| 5% | up to $2 million |
| 10% | up to $2.5 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO); Dentist (DMD, DDS), Pharmacist (Pharm D), Attorney (JD), Veterinarian (DVM), Physician Assistant, Registered Nurse (RN/NP/CRNA), ATP Pilots, CPA
$500M+ Closed Loans
Flagstar Bank was chartered in 1987 and holds around $23 billion in assets, making it a medium sized bank. However, they punch above their weight when it comes to mortgages.
The bank is the sixth largest bank mortgage originator nationally. They only offer ARM products when it comes to doctor mortgages but their ability to lend in all 50 states means they're a player at every closing. There is no application fee or prepayment penalties. They also offer a float down, buy down, and recast option. [ Read Review ]
Medical doctor (MD/DO); Dentist (DMD, DDS), Pharmacist (Pharm D), Attorney (JD), Veterinarian (DVM), Physician Assistant, Registered Nurse (RN/NP/CRNA), ATP Pilots, CPA
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 5% | up to $1.5 million |
| 20% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO), Dentist (DMD/DDS), Veterinarians (DVM)
$10M+ Closed Loans
Alerus is a national bank but one that you might not know. They are headquartered in North Dakota but provide mortgage across the country.
Alerus has some other interesting features, including a $20,000 closing guarantee. It's a benefit paid to the seller if the loan doesn't close per the terms of the pre-approval letter. In other words, it's something you can use to make your offer look more attractive in a competitive market. [ Read Review ]
Medical doctor (MD/DO), Dentist (DMD/DDS), Veterinarians (DVM)
| Down payment | Financing |
|---|---|
| 0% | up to $750 thousand |
| 5% | up to $1 million |
| 10% | above $1.5 million |
• Online
usually responds within 30 minutes
Medical doctor (MD); Dentist (DMD, DDS); Fellows, Residents
$500M+ Closed Loans
Citizens Bank is one of the largest banks in the United States. We bet you didn't know that it is head-quartered in the smallest state: Rhode Island.
With over $160 billion in assets, it's no surprise that Citizens offers a full range of financial products, including a physician loan. New medical professional graduates who are under contract for residency within 60 days of closing and have not yet obtained a license are eligible. No more than 10 years out of residency. Self-employed professionals are eligible with a two-year history of self-employment income. [ Read Review ]
Medical doctor (MD); Dentist (DMD, DDS); Fellows, Residents
| Down payment | Financing |
|---|---|
| 5% | up to $850 thousand |
| 10% | up to $1 million |
| 15% | up to $1.5 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO); Dentist (DMD, DDS), Podiatrist (DPM), Fellow, Resident
$500M+ Closed Loans
Truist was formerly known as SunTrust and has historically been a strong player in the doctor mortgage world, thanks to a strong physician home loan program.
Medical professionals with a job offer can close up to 90 days prior to the start date. For doctors and dentists with 10 to 15 years post-training experience, 89.99% financing is available for up to $1.5 million. Truist won’t let you borrow outside of your debt-to-income ratio of 43%, but your student loan payment can be excluded from the debt component if the student loans are deferred for at least 12 months at the time of closing. [ Read Review ]
Medical doctor (MD/DO); Dentist (DMD, DDS), Podiatrist (DPM), Fellow, Resident
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 5% | up to $1.5 million |
| 20% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO); Lawyers(JD), Residents, Fellows
$500M+ Closed Loans
US Bank has a great doctor mortgage program but it isn't advertised on the bank's website. You'll have to contact them directly.
US Bank is able to lend in all 50 states, meaning this program is available to most of the country's doctors and physicians. The downside is that the program is fairly limited. For example, dentists, pharmacists and nurses aren't eligible. [ Read Review ]
Medical doctor (MD/DO); Lawyers (JD), Residents, Fellows
| Down payment | Financing |
|---|---|
| 5% | up to $1 million |
| 10% | up to $1.5 million |
| 15% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD, DO); Dentist (DMD, DDS); Fellows, Residents
$50M+ Closed Loans
Synovus Bank is headquartered in Columbus, Georgia and offers a doctor mortgage program to people in the medical field.
Synovus Bank's doctor mortgage program is specifically designed to cater to the unique financial needs of medical professionals. This program offers specialized mortgage options that include low down payments and flexible terms, tailored for doctors at different stages of their careers. Synovus focuses on providing customized financial solutions to assist medical professionals in buying or refinancing their homes. [Read Review]
Medical doctor (MD, DO); Dentist (DMD, DDS); Fellows, Residents
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 10% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO), Dentist (DMD/DDS), Podiatrist (DPM)
$10M+ Closed Loans
Keybank is a major national bank based in Ohio with a competitive doctor mortgage program. They also lend across a large part of the United States.
The Keybank doctor mortgage program does not require you to be a minimum or maximum number of years out of medical school to qualify. They also offer large mortgage options if needed and part of your down payment can be supplied in money that you've received as a gift. [ Read Review ]
Medical doctor (MD/DO), Dentist (DMD/DDS), Podiatrist (DPM)
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 5% | up to $1.5 million |
| 15% | above $2 million |
Deciding whether or not an Alabama physician mortgage loan is right for you means asking a few questions about where you are in your life and career.
Is it the right time to buy? This can depend on a number of factors, including where you are in your professional career. Do you foresee yourself staying in the area in the long term, or will your career take you in a new direction? Are you sure that your job is the best fit? If you are less than 2 years into a position, you may want to wait and confirm that you will stay in that job in the long term before committing to a house. When you find the right property on NMLS and are offered a great new position through a recruiter, for example, you can get that dream home on the line before you start the job.
Consider, too, that with 0% down on a home, it can be quite easy to buy too much house. As a general rule, it is advisable to keep a purchase to around 2x your salary. Only enter into an Alabama physician mortgage loan if you are confident that you will adequately scale it to your income and not get underwater with your loan.
If getting the lowest rate possible is a priority for you, you may want to forego a doctor mortgage, save up 20 percent and take out a conventional loan.
Finally, consider that Alabama lenders offer physician loans because they covet long-term relationships with high-income professionals. By taking out an Alabama physician mortgage loan, you are establishing a financial relationship that could very well benefit you throughout your life and career.
It might help when making a decision about a physician loan to consider some scenarios that illustrate how these financial products benefit professionals and why certain professionals choose them. The following are some common scenarios under which a doctor might apply for a physician loan.
Shannon has just graduated from the Heersink School of Medicine at UAB. She has already secured a residency at Children’s of Alabama and she’s looking forward to establishing a base nearby. Given the size of her student debt, however, and her full-time commitment to her studies, she has not been able to save enough for even a 3.5 percent down payment on an FHA loan.
Fortunately, she has heard about doctor mortgages and is ready to take advantage of the opportuning. The time is right for her to establish roots and she plans on building her career in the area in the long term. A doctor mortgage is a great option for her, allowing her to finance a starter home without cash in hand.
Rick has been running a successful local practice in Birmingham for several years now. He has a solid patient roster and reliable income, and he has even been able to invest money in a portfolio that is doing quite well. He and his wife recently spotted a home they love for sale down the street from his practice.
Rick considered liquidating some of his investments to use the cash as a down payment on a conventional loan. With the investments doing so well, however, he’d prefer not to do that. Applying for a physician loan makes sense for Rick, as he can access a loan with little to no money down.
If you’re looking to explore the best physician loans in other states, click on your state below.
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.
One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.
Biglaw Investor is helping thousands of lawyers manage and eliminate student loans and make great investment decisions. We’re on a mission to help every lawyer achieve financial independence.