6 Best Physician Loans in Colorado


Physician mortgage loans in Colorado often require no down payment and don’t charge you for private mortgage insurance.

Key Terms

  • A Colorado physician mortgage loan comes with high loan limits and options for up to 100% financing.
  • Doctors and other professionals can enjoy no PMI with these mortgages.
  • You can qualify for higher loan amounts than might otherwise be available when you use a doctor mortgage.

Colorado is the 8th largest state in the United States and home to nearly six million people, including its fair share of doctors, with the latest count showing almost 17,000 physicians in the state.

With so many people calling Colorado home and the steady influx of people into the state, we’ve seen a steady increase in housing prices. The Denver Post is reporting the latest average sales price at $415,000, making it significantly more than the nation’s average.

For the doctors and other professionals hoping to buy real estate in Colorado this year, a doctor mortgage may make the process more affordable since most physician loans do not require private mortgage insurance (PMI) and many programs offer low and no down payment options. Medical doctors can benefit from a physician mortgage loan for their primary residence due to several advantages not offered by regular loans.

If you’re considering a doctor mortgage in Colorado, read on to understand the pros and cons, as well as the list of physician loan lenders in Colorado that we uncovered during our research.

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Reasons to consider a Colorado physician mortgage loans

A “doctor mortgage” or physician mortgage loan can be an excellent choice for any doctor or professional living and working in Colorado. It can allow you to purchase a home without a large down payment, for one; in fact, many doctors receive 100 percent financing on their loans. Once you get a great job offer and find a great place to live on the NMLS, most doctors don’t want to be hindered by the traditional challenges borrowers face with regular loans. That’s why they choose to turn to physician home loans instead.  This helps health care professionals get a leg up on their perfect property with a loan to buy the home now with different rules than traditional loans. Doctor loans can make sense when you’re sure you can cover the repayment amount in the future.

Homeownership is often a challenge for new doctors who don’t have a first residence to refinance, possibly high credit card balances, and significant student loans taken out to pay for medical school. Much like other loan offerings, monthly payments do kick in, so it’s important to balance those future monthly payments in during your home buying process. The loan process looks somewhat different for physician mortgage loans.

These loans also exempt you from making PMI payments— an additional cost that comes with conventional loans. Doctors in Colorado who are also burdened by a good deal of student debt from undergrad and medical school receive favorable treatment of this debt, making it easier to qualify for the loan. . 

There are some downsides that can come with these financial products. These include higher interest rates and the possibility that you might purchase more house than you can afford, since these loans come with higher limits than conventional mortgages. The lender may also require that you open an account with them in order to establish a long-term relationship.   

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6 Top doctor home loan lenders in Colorado

If you’re in the market for a home in Colorado, consider these physician mortgage loans that are available to state residents.

1. First National Bank of Omaha

First National Bank of Omaha may sound like a community bank but they are able to lend to many states in the Midwest and Texas. With $17 billion in assets they  count as a medium-sized bank, perfect for your needs as a lender. Their physician loan is also a competitive product.

We spoke to a loan officer at First National Bank of Omaha to learn more about their doctor mortgage. Here are the highlights:

  • 0% down up to $600,000 (requires 4 months of reserves)
  • 5% down up to $850,000 (requires 4 months of reserves)
  • 10% down up to $1,250,000 (requires 6 months reserves)
  • For non-doctor professionals: 5% down up to $750,000 and 10% down up to $1,000,000
  • Minimum credit score is 720
  • No private mortgage insurance
  • Student loan deferment options
  • Employment contracts that have been fully executed with no contingencies. Must start work within 90 days of closing
  • 30 year fixed rate loans and 10/1 ARM loan options. 10/1 ARM loans offered at a discounted rate, fixed for the first 10 years.

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

2. Huntington Bank

Huntington Bank is the 26th largest bank in the United States. Operating primarily out of the Midwest, their mortgage group can service a large part of the country. Huntington has a competitive physician loan product with no money down financing options.

We contacted a loan officer at Huntington Bank to gather information about the doctor mortgage and here’s what we heard back:

  • 0% down payment up to $1 million
  • 5% down payment up to $1.25 million
  • 10% down payment up to $2 million
  • Maximum financing up to $2 million
  • Eligible degrees are: MD, DO, DDS, DVM or DMD
  • Residents are eligible
  • Minimum credit score is 700
  • 2 months reserves required (6 months for jumbo loans) – reserves can be held in bank or investment accounts
  • Gift funds for down payment are OK
  • 30-year and 15-year fixed-rate mortgages
  • ARMs available in 7/6, 10/6 or 15/6 terms
  • Can close on the strength of a new employment contract without paystubs
  • No private mortgage insurance
  • No prepayment penalty

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.

3. Flagstar Bank

Flagstar Bank was chartered in 1987 and holds around $23 billion in assets, making it a medium-sized bank. However, they punch well above their weight when it comes to mortgages and operate as the sixth largest bank mortgage originator nationally. Not surprisingly, a big part of their success has been a doctor mortgage program.

We contacted Flagstar Bank to learn more details about their physician loan. Here are the key terms that you need to know?

  • 5, 7 & 10 year ARM  products
  • 0% down up to $1,000,000 (first time homebuyer – have not owned in last 3 years)
  • 5% down up to $1,500,000 (first time homebuyer – have not owned in last 3 years)
  • If not a first-time home buyer
  • 10% down up to $1,000,000
  • 15% down up to $1,500,000
  • 20% down up to $2,000,000
  • 25% down up to $2,500,000
  • Fixed products
  • 10% down on the jumbo fixed to a max loan amount of $1,000,000 with no PMI
  • 20% down on the jumbo 30 year fixed with a max loan amount of $3,000,000
  • For first time home buyer (have not owned within last 3 years):
  • 3% down up to $647,200
  • If not a first time home buyer:
  • 5% down up to county limit (with and without PMI)
  • Medical doctors and lawyers are eligible. We weren’t able to confirm that the program is available to dentists and other (non-doctor) medical professionals, but encourage you to contact them to confirm.

The total reported lender fees as of the date of this article were $1395 ($550 processing and $845 for underwriting).

Another benefit of Flagstar is that they can submit a full file to underwriting for an actual loan approval (not pre-approval) without having a purchase contract signed, which makes your competitive with all cash offers and the process less stressful for you. There is no application fee or prepayment penalties. They also offer a float down, buy down, and recast option.

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.

4. 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.

5. Keybank

Keybank has over $170 billion in assets and is the 24th largest bank in the Untied States. They operate throughout 39 states but can originate mortgages in nearly all 50, making them a popular choice among medical doctors throughout the country. One of their key financial products is a physician loan.

While Keybank doesn’t post a lot of information about their doctor mortgage online, we were able to get in touch with a loan officer at the bank to get all the important details. See below for an overview of the program details:

  • 0% down up to $1,000,000
  • 5% down up to $1,500,000
  • 15% down up to $2,000,000
  • No private mortgage insurance
  • Gifts permitted for down payments
  • Can close on the strength of an employment contract up to 90 days prior to the start of employment
  • Minimum credit score is 700
  • Student loan debt can be calculated based on income driven student loan payments
  • Fixed loans offered in 10, 15, 20, 25 or 30-year terms
  • Adjustable-rate mortgages offered in 5/6, 7/6 and 10/6 options
  • No minimum or maximum years in practice for eligibility
  • Reserve requirements are: 2 months (loans under $500K), 4 months (loans between $500K – $750L), 6 months for loans over $750K plus an additional 2 months if closing prior to start date. Retirement accounts count toward reserve requirements.
  • US Citizens, Permanent Residents and H1B Visa holders are eligible
  • California loans require a minimum of 5% down

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.

6. Blueleaf Lending

Blueleaf Lending is a doctor mortgage program open to medical doctors, dentists, podiatrists, ophthalmologists and veterinarians. They are also able to work with professionals that have an employment contract (or verification of terms of employment acceptance) for purposes of qualifying your income.

We contacted a Blueleaf Lending mortgage loan officer to get more details on their physician mortgage program. Financing is available for:

  • 0$ down up to $750,000
  • 5% down up to $1,250,000
  • 10% down up to $2,000,000
  • No prepayment penalties.
  • 1-2 Unit Properties, Condos, Townhouses, PUDs and Modular Homes OK.
  • Non-Warrantable Condos are OK up to a LTV of 90%.

Some of the strengths of the program is that there are no time restrictions on when a client starts their new employment vs the closing date if the applicant has enough reserves.

Most lenders won’t let you close on a new home purchase if you are outside of a 60-90 day window before your start date, so this would allow recent graduates to qualify much earlier in the process so long as they have reserves to cover the mortgage and escrow payments.

Blueleaf Lending can accept a debt-to-income ratio up to 50% and will allow business assets and gift funds to cover the down payment, closing costs and reserve requirements.

If you’re a physician who has been hired as a contractor or “1099 employee” (something more and more common these days), Blueleaf Lending will not require you to establish a 2-year history before counting your income, which is a huge advantage for new docs that find themselves in contractor positions.

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

Is a Colorado physician mortgage loan right for you?

When considering a Colorado physician mortgage loan, it’s important to determine whether it is the right option for you. Do you plan on staying in Colorado for the foreseeable future? Are you happy with your current job, and do you see yourself remaining in that position for years to come? If your answer is ‘yes,’ a physician mortgage loan may be a perfect fit, especially given the friendly terms a doctor mortgage extends to professionals like you. 

It is also important to remember that, in some instances, these products can come with higher interest rates. If you prefer to get a lower rate, waiting to save for a down payment on a conventional loan or waiting until you can pay down your student debt may be a better option. Despite their few pain points, however, these mortgages are popular with many doctors and professionals in Colorado, giving them an easy way to afford a home in a complex housing market. 

Examples of doctors who take out physician loans in Colorado

As you consider whether a doctor mortgage is a good choice for you, it may help to have a better understanding of some of the doctors who are taking out these loans. They are high-earning, gainfully employed professionals just like you who benefitted from these physician-friendly mortgage options. 

A doctor who gets the best rate with a doctor mortgage

Barbara has been financially conscientious for most of her adult life. Even when she was in medical school, she was able to build up a small savings, and her credit and income could qualify her for a conventional loan. She was delighted recently to discover, however, that there was a doctor mortgage available from a local Boulder bank that offered a very competitive interest rate. By taking out this physician loan, she could enjoy all the advantages of this product while still enjoying the lower interest rates that she prefers. 

A dentist who doesn’t have a down payment

Establishing a dental practice in Denver has allowed Malcolm to succeed in ways he never thought possible. He has a good income, a full slate of patients and a great reputation in his community. What he does not have, however, is sufficient cash on hand to make a 20 percent down payment on a conventional home loan— at least not without dipping a bit too far into savings. A regional bank is offering a physician mortgage to professionals like him, and Malcolm is eager to take advantage of home financing with no money down. 

If you’re looking to explore physician mortgage loans in other states, check out our national overview of physician loans as a starting point in your search.

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Joshua Holt

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.

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