5 Best Physician Mortgage Loans in Connecticut

Known as the Constitution state, Connecticut is the southernmost of the New England states. With its proximity to the New York metro area, lush, green suburban areas and quality schools, it has become an attractive place for professionals of all types, including doctors.  In fact, there are over 12,000 doctors in the Constitution state. 

For many, owning a home in Connecticut may seem like a challenge. Data shows the average sales price for single-family homes in Connecticut is $399,142 per the Eastern Connecticut Association of Realtors. In Connecticut, 64% of the residents own their homes, whereas 36% are renters.  

Doctors and dentists who want to purchase a home in Connecticut may be able to participate in the state’s physician mortgage loan program. This could mean, as a qualified buyer, you could buy a home here with a lower down payment or even no down payment. 

Perks of Connecticut physician mortgage loans

While the Connecticut housing market may not be as brutal as some, it is still competitive, and keeping an eye out for great financial products that can help you buy a home is important. If you are considering a physician mortgage loan, it can be a good idea to take a look at some of the pros and cons that come with this type of loan. 

The pros of a physician mortgage loan are impressive and include:

• Little or zero money down  
• High loan limits
• Special consideration for student debt
• No PMI

Additionally, lenders may sometimes offer loans based on a contract that you have signed, even if you have yet to start the job; in some cases, you may be able to get a loan 90 days before you actually start a new job. 

Those pros are great, but there are some cons to consider, including:

• Higher limits can lead you to buy a more expensive house than you should
• Higher interest rates

The banks that extend these loans may also want you to establish a long-term relationship with them, meaning you will need to open a savings, checking or investment account with that financial institution. If you’re not careful, you might end up with a mortgage payment that’s too high for you to keep up with on a regular basis.

Do you research and calculate your other expenses, too, so that you can feel confident about your mortgage payment from your future paycheck. As a first time homebuyer, working through the physician loan process is quite different from buying another kind of home, so make sure you read through all the different requirements and disclosures associated with physician home loans.

5 Best Connecticut physician home loan lenders

If you’re ready to check out the top physician mortgage lenders in Connecticut, here are the best options we’ve found through our research.

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.

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.

Things to consider before committing to a Connecticut physician mortgage loan

It’s only natural to ask yourself if a physician mortgage loan is right for you before making a decision. What are some factors you should consider? First, take a look at your current position, whether it is at a hospital, private practice or clinic. Is it a place where you want to work for years to come? If so, a physician mortgage is a great choice. Providers must carefully balance the benefits of a physician home loan with other options, such as going with a traditional loan or VA loan, if eligible.

A doctor loan can also medical residents who are on the verge of accepting their first role to get the loan amount needed to purchase a dream home. For those working in healthcare, it can be exciting to get a new job offer and then to find a great property on the NMLS, but getting the funds together for a down payment can feel impossible on a resident’s limited salary. This makes the home buying process possible and easier for doctors who want to get into real estate and purchase their primary home or first home.

Next, ask yourself, how comfortable you are with a potentially higher interest rate on a mortgage. While that higher interest rate comes with significant advantages, it can cost you some extra dollars over the history of your loan. Of course, when seen from the other perspective, you might consider those monies as money well paid to get you an easy to qualify loan with a high limit. That higher interest rate can affect your repayment.

Finally, ask yourself if the lender is someone with whom you want to be in business throughout your career. By offering you a physician mortgage loan, chances are your bank or lender wants you to stick with them in some other capacity, as well— something that could work in your favor. 

Examples of Connecticut medical doctors who take out physician loans

Who are the professionals, dentists and doctors taking out physician loans in Connecticut? Anyone and everyone. The following are some summary examples that provide a good overview of the types of people taking out these loans. 

Physician who doesn’t have down payment saved yet

Steve is a family doctor in a group practice in Stamford. His own family is growing and the time is right for him and his wife to buy a larger home. Even with the higher median price in Connecticut, his salary is more than enough to afford monthly payments on a more expensive home.

Steve doesn’t have enough for a 20 percent down payment, however. Life gets expensive, after all. Even with a stellar salary, Hunter doesn’t have too much cash on hand. Some of his cash is tied up in investments and a good deal has gone towards his practice. Having the option of accessing a loan with zero money down is a real advantage given the stage of his career. 

Physician whose DTI ratio is affected by too much student debt

Stephanie is in the middle of a successful fellowship at Hartford Hospital. Her salary is more than respectable for the time being and she is going into a lucrative field— orthopedics. She incurred a lot of debt for all that success, however. That student debt is not making her look good to many of the local banks that offer conventional mortgages. A doctor mortgage is the perfect alternative; her salary is impressive to the bank and they know her student loan debt doesn’t reflect poorly on her financial picture in any real sense. 

Looking for a physician loan in a different state?

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