5 Best Physician Mortgage Loans in Arizona

Contrary to popular belief, Arizona isn’t all hot weather and deserts. The western state is a diverse place, experiencing significant snowfall in the winters and boasting several ski resorts, in addition to its classic arid landscapes. Arizona is also, of course, home to the internationally renowned Grand Canyon National Park – one of the world’s seven natural wonders. 

With so much to offer, it’s no wonder Arizona’s housing market is experiencing one of the biggest surges in the country, growing at a rate of about 11% year-over-year. Recent statistics from the National Association of Realtors show that Arizona real estate has an attractive average home price at $477,219.

Buying in Arizona can be particularly appealing for high-earning professionals, many of which can qualify for real estate benefits such as physician loans in the state. These physician mortgage loan programs extend a number of advantages to the 18,343 doctors and other professionals in Arizona, allowing them to purchase a home sooner than they might expect. 

The good and bad parts of Arizona physician mortgage loans

Any big purchase should come with some careful consideration of the pros and cons involved. What are the pros and cons of going with an Arizona doctor mortgage? The pros are impressive, giving Arizona doctors and professionals a much easier entry point to the housing market. With a physician loan, you can get:

• 100% financing, or 0% down
• No PMI payment(s)
• Special considering for student loans 
• Higher purchasing price limit

And the downsides? There are a few, though many professionals feel the pros outweigh the cons. Some of the cons associated with doctor mortgages include:

• The risk of purchasing too much house
• Taking on more debt
• Higher interest rates, at times, when compared to conventional loans
• The expectation that you will become a customer of the lender/bank

Keeping these pros and cons in mind can help you make an informed decision when choosing between a physician loan and other conventional options. For healthcare professionals who locate an ideal real estate property on the NMLS, such as medical residents who have just received a high offer, these loans make sense. New doctors can use these to buy a new home without having to bring in a substantial down payment. This provides quicker and easier access to homeownership, but all doctors should carefully research the home buying process with a physician home loan. Qualifying doctors should do their research to decide on the right lender.

For someone who doesn’t have the opportunity to tap into refinancing to buy a second home or a credit card to assist with the purchase process, a physician home loan could be an option for a new physician to get a perfect place.

5 Top physician home loan lenders in Arizona

Some of these lenders only offer mortgage loans to attending physicians, while others can lend to those still in residency.

City National Bank of Florida

City National Bank of Florida is a medium-sized bank with over $22 billion in assets. Although they are headquartered in Florida, they offer a physician loan in all 48 contiguous states and are eager to find physicians and other professionals as new customers.

We spoke with a loan officer at City National Bank of Florida to gather details on the doctor mortgage program. Here is what we learned:

• Physicians, Dentists, Attorneys and CPAs are eligible
• 3% down up to $650,000
• 5% down up to $850,000
• 10% down up to $1,250,000
• 10.51% down up to $2,500,000
• 15.51% down up to $3,000,000
• Primary residence and vacation homes are available (higher down payments required for secondary houses)
• Can finance condos but only with a 20% down payment
• Minimum credit score required is 660 but better rates/options require 720 credit score
• Self-employed individuals need to provide 2 years of income verification

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

Citizens Bank

Citizens Bank is one of the largest banks in the Untied States. I bet you didn’t know that it’s headquartered 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.

We contacted a loan officer at Citizens Bank to learn more about their doctor mortgage loan program specifically. Here are details you won’t find anywhere else:

• 5% down up to $850,000
• 10% down up to $1,000,000
• Practicing licensed medical doctors (MD and DO), dentists (DDS and DMD), residents and research physicians are eligible
• Licensed residents, fellows and interns can borrow a maximum of $600,00 (or $400,000 if unlicensed)
• No more than 10 years out of residency
• Self-employed professionals are eligible with a two-year history of self-employment income
• 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 private mortgage insurance
• 40% max debt-to-income ratio
• Student loan debt that’s deferred for more than 12 months from the date of closing can be excluded from DTI calculations
• Construction-to-permanent loans available with a maximum of 89% financing
• Fixed rate or adjustable-rate mortgage options
• Interest-only option on certain adjustable-rate mortgage options (max financing at 89%)

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

Does a physician loan in Arizona make sense for you?

Asking if an Arizona physician loan is right for you is a valid question. What are some of the factors you should consider when making this choice?

Start off by asking whether the time is right. If you have just started a job, it may not be the right time to commit to a big purchase. It often takes as many as two years to determine whether a job can work for you. Committing to a home purchase may be premature if you are still in the early days of a job.

Next, ask yourself how much house you really want to invest in. One of the most appealing features of doctor mortgages is that you can get the loan with zero down. This, however, can drive some to purchase a bigger or more expensive home than they really need. Limiting your purchasing price to around two times your salary is a good idea if you do move ahead with a physician loan. 

Are lower rates more appealing to you? In that scenario, you might consider waiting to see whether you can save towards a large down payment and go with a conventional mortgage instead. 

Remember, too, that lenders extend physician loans to high-earning professionals like you because they believe you will be a good, long-term customer. Making a commitment to a doctor mortgage comes with advantages, including this financial relationship with the lender, but could be more than you are willing to take on for the time being. Some of the typical options with equal housing lenders, FHA loans, a refinance, or other lender opportunities might not be the right fit for you, but a physician’s home loan could open the door.

Examples of physicians who take out doctor mortgages in Arizona

Understanding how and why doctors and other professionals take out physician loans in Arizona can add another layer of clarity to your decision making process. Here are just a few scenarios that exemplify the doctors who apply for these financial products. 

Anesthesiologist who doesn’t have down payment

Carmen is just beginning her residency in anesthesiology at the University of Arizona Health Science (UAHS) and has her sights set on a long-term career in Tucson. She hasn’t been able to save up much during medical school, having committed most of her day to her studies. Most of her cashflow is now going toward student debt repayments, as well. 

Another resident at UAHS let her know about doctor mortgages, including the appealing benefit of getting a mortgage with no money down. Since Carmen knows she wants to stay in Tucson and wants to establish herself now early on in her residency, the time is ideal to move ahead with an Arizona physician loan. 

Medical doctor interested in maximizing leverage

Marcus is in his second year as an attending physician at Banner – University Medical Center in Phoenix. His salary is great, and he has been able to make some headway with his student debt. He has even invested some of his cash on hand. This, however, has tied up his liquid assets and he doesn’t have the funds for a big down payment. 

Since his portfolio is doing well, he doesn’t want to sell. Since his salary is so high at this point in his career, he’s been told he’s a great candidate for a doctor mortgage with zero money down. Rather than let go of his investments, Marcus has decided to take out a physician loan to purchase a home for his growing family. 

Looking for a physician loan in a different state?

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