7 Best Physician Mortgage Loans in Delaware

Physician mortgage loans in Delaware are a great way to take advantage of 0% down mortgages for medical doctors, dentists and other professionals.

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Key Terms

  • Higher loan limits with potential 100% financing in some cases give borrowers more options.
  • Student loan payments typically receive favorable treatment with a doctor loan, making it easier to qualify for a mortgage.
  • Doctors and other professionals can enjoy no PMI with these mortgages.

Known to many as the Blue Hen State or the Diamond State, Delaware was one of the original thirteen colonies and the first state to ratify the Constitution. Given that, it’s not surprising that some call it by yet a third nickname, the First State!

These days, one of Delaware’s most appealing characteristics is its business-friendly laws and tax structures. That’s why over half of the businesses on the New York Stock Exchange call it home. Over 2,800 doctors also call it home— a significant number in a state with an adult population that doesn’t even reach 300,000. 

Whatever job you may have, many may believe that owning a home in Delaware may be unattainable. Data from Delaware Online shows the average sales price for single-family homes is currently $345,000. This includes the fact that 58.6% of the homes sold above the listing price, which is a 125% increase when compared year over year. Many places in Delaware offer great real estate options, such as New Castle or Dover. No matter where you’re moving, however, medical professionals might need help with getting a doctor loan.

For doctors and dentists who wish to buy a home in Delaware, the physician mortgage loan program may offer the help and guidance needed, even allowing you to purchase a loan with a minimal down payment and, in some cases, none at all. 

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Top reasons to consider a Delaware physician mortgage loan

A physician mortgage loan can be a great option for any doctor or professional. It’s a big commitment, however, so before entering into this financial agreement, make sure to weigh the pros and the cons. 

What are some of the pros? To start, many find the fact that you don’t have to put any money down on these loans in many scenarios very appealing. There is also the fact that you are exempt from making PMI payments with these types of loans. For professionals who incurred a lot of student debt during their education, there is also the fact that student debt is dealt with very favorably in a physician mortgage loan. 

If you have a lot of student loan debt, that doesn’t count against you as much when qualifying for physician home loans. If you have a good job offer with great pay, the monthly payments from a doctor loan may be accessible to you, all the while giving you the right benefits in the short term to take out that loan.

For most people in residency programs, the pay is limited. During this training period, it’s hard for someone to build up a nest egg to cover a down payment. Then there’s the issue of using credit cards and the impact of high student loan debt factoring into your credit score, too. Qualifying for traditional loans can feel impossible for plenty of medical professionals, including nurse practitioners and physician assistants still in their training stages.

Of course, there are downsides as well. One downside is that these loans come with higher limits; while that may be a pro to many, in some situations, it may drive a borrower to purchase more house than they can really afford. Finally, these loans can come with a higher rate than other financial products, so you may be paying more in interest than you like. 

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7 Best physician home loan lenders in Delaware

If you’re ready to look over the best doctor mortgage lenders in Delaware, here are some options to consider.

1. 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.

2. Bank of England

If you thought the Bank of England was in the United Kingdom, you’ll be surprised to find out that the Bank of England is located in England, Arkansas but has the ability to lend in all 50 states (except NY).

We contacted the Bank of England to see if we could gather details about their physician loan program. Here is what we learned:

  • 0% down up to $1,000,000
  • 5% down up to $1,500,000
  • No PMI
  • Only available on 3, 5 and 7-year ARM terms
  • Program aimed at doctors who either seasoned practitioners or just out of medical school (in other words, they work with doctors of all experience levels).
  • Requires a credit score of 700
  • Requires two months of payment reserves.
  • You can be a US Citizen or a Permanent or Non-Permanent Residence.
  • They are able to exclude student loan debt in deferment or forbearance of 12+ months from the debt-to-income calculation.
  • You can only use this doctor mortgage program for single family residences, condos and two-unit properties.

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.

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 $1,395 ($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. 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.

5. Fulton Bank

Fulton Bank  is a subsidiary of Fulton Bank, a financial institution that traces its roots back to 1882. The bank and mortgage company offer a full suite of financial products, including an attractive physician loan program.

We contacted Fulton Bank to get more details about the doctor mortgage specifically and we think you’re going to like a lot of the terms. Here are the important details:

  • 0% down up to $1,000,000
  • 5% down up to $1,500,000
  • 10% down up to $2,000,000
  • 30 and 15 year fixed rate options as well as adjustable rate options (5/1, 7/1, 10/1, and 15/1)
  • No mortgage insurance
  • Up to 6% seller paid closing costs and prepaids are allowed
  • Gift funds from immediately family members allowed
  • Student loans deferred for 12 months or longer are not included in the credit approval process
  • You can close on a house up to 90 days prior to start of new employment with an employment contract
  • Physicians, Pharmacists, Dentists and Veterinarians are eligible for the program

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. TD Bank

TD Bank is one of the largest banks in the United States. While primarily operating on the east coast, in recent years they have expanded their footprint through a series of acquisitions and now rank as one of the top 10 banks in the country. The bank offers a full suite of financial products, including a physician loan.

We reached out to a loan officer at TD Bank to find out more details about their doctor mortgage. Our key takeaways and program highlights are below:

  • 0% down up to $750,000
  • 5% down up to $1,250,000
  • 10% down up to $1,500,000
  • The following degrees qualify: practicing physician (MD, DO or DPM), dentist (DDS or DMD) and oral surgeon.
  • Licensed medical resident or fellow and licensed dental resident or fellow qualifies
  • If self employed doctor or dentist, you must have owned your practice or have been otherwise self-employed for at least two years
  • Available property types: single family residence, condominium, co-op (in specific markets only) and property in a planned unit development (PUD).
  • Fixed or adjustable rate loans available
  • No private mortgage insurance
  • Flexible approach to debt-to-income understanding that medical professionals have significant student loan debt
  • Contract for new employment can be used to qualify for mortgage
  • Minimum credit score of 720 (for loans below $750,000) or 740 (for loans above $750,000)
  • Must be within 10 years of residency or fellowship

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.

7. Bank of America

Bank of America is one of the original lenders (if not THE original lender) in the physician mortgage space. With over $3 trillion in assets, it’s one of the largest banks in the United States and chances are good that you are familiar with the company. Not surprisingly, they still offer a doctor mortgage product.

We reached out to a Bank of America mortgage officer to get more details about their program and this is what we learned:

  • 5% down up to $1,000,000
  • 10% down up to $1,500,000
  • Residents and fellows with a job lined up can close on a home 90 days before they start.
  • You can often exclude your student debt from your total debt when you apply for a mortgage.
  • Eligible medical professionals include salaried medical students and medical doctors who are about to begin their new employment/ residency for fellowship within 90 days of closing. Those employed in research or as professor are not eligible. 

While they may not have the most competitive program, they are a solid choice for a physician looking for a doctor mortgage, particularly if you’re already banking with Bank of America.

Of course, if you aren’t already a current Bank of America customer, they will require you to have, or open prior to closing, a checking or savings account. Applicants with an existing account with Merrill or Bank of America Private Bank prior to application also satisfy this requirement.

When it comes to reserves, Bank of America requires PITIA (Principal, Interest, Taxes, Insurance, Assessments) reserves of 4 – 6 months, depending on loan amount.

If applicant’s employment does not commence until after closing, in addition to the minimum cash reserves required, sufficient reserves to handle all debt obligations between closing and employment start date up to an additional 90 days must be verified.

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 Delaware physician mortgage a good idea for you?

When moving to Delaware to work in healthcare, you might find the perfect piece of real estate on the NMLS or with a realtor’s help. From there, however, you might struggle to figure out how you’ll meet the terms of a traditional loan on a resident’s salary. That doesn’t necessarily mean that a physician loan is right for you.

Consider the following questions:

Are you happy in your current job? A mortgage is a long-term commitment. Before committing to a doctor mortgage in Delaware, make sure that you are in a position where you can see yourself thriving for years to come. 

Are you okay with paying a higher interest rate? Many might say yes to that question. After all, it’s the price one pays to access financing and, in the case of a physician mortgage, comes with several benefits. 

Are you looking for a long-term relationship with a financial institution? The bank or lender extending the loan to you may very likely want to establish a relationship that lasts. For some, this might be a burden, while others might view it as an asset. 

The types of Delaware doctors who might use a physician loan

Let’s take a look at some of the doctors who take out physician loans in Delaware. These doctors, dentists and professionals may be just like you. 

Anesthesiologist who recently starting working full-time

Maeve put a lot of effort into becoming an anesthesiologist. Now that she’s comfortably installed in a position at an orthopedics clinic in Rehoboth that does the latest outpatient knee replacements, she believes the time is right (and her salary is right) to buy a home. 

There’s only one problem– she hasn’t been able to save for a down payment. The local banks are asking for 20 percent down, especially given her student debt. A doctor mortgage is a great answer. The bank offering the physician mortgage loan is extending the loan with no money down and giving special consideration to her student debt. 

General practitioner who wants to maximize leverage

Rhiannon has been working as a general practitioner for a decade now. Her investment portfolio is in good shape, but she has little cash on hand. The time has come, however, for her and her partner to buy a home. 

There is the option of liquidating some of her holdings. The time is definitely not right for that, however, and Rhiannon wants to hold her positions and maximize her leverage by taking out a doctor mortgage. She can get this loan without putting any cash down, making it the optimal solution for her current financial picture. 

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.

Find a Physician Loan Specialist

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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