5 Best Physician Loans in Idaho

Located in the Northwest portion of the United States and bordering Montana, Washington, Oregon, Wyoming, and Canada, Idaho is known to many as the “Potato State” or the “Gem State.” This stunning mountain state is home to a number of beautiful National Parks and National Recreation Areas, including Yellowstone National Park and Hells Canyon National Recreation Area.

Idaho, especially Boise, continues to be one of the most important housing markets in the U.S. Economists believe that Boise will rise about 9% in the coming year, from 2021 to 2022, while the state’s home sales also grow around 10%. The area’s home prices have been growing for several years, topping expectations. 

The state is also home to over 3,500 doctors, according to the Association of American Medical Colleges. For doctors and dentists thinking about buying a home in any part of the state, Idaho’s physician mortgage loan program could be the ideal way to do so. For qualified healthcare professionals, this could mean an affordable loan with no down payment requirements or minimal requirements. 

Best and worst features of Idaho physician mortgage loans

If you are here to learn about physician mortgage loans, you may want to learn about any pros and cons that come with these financial products. The pros are pretty substantial, and include:

• No PMI payments
• High loan limits
• Special consideration for student debt
• Zero money down, in many cases

Entering into an Idaho physician mortgage loan can also lead to a long-term relationship with the bank that extends the loan to you. This relationship can support you in many ways for years to come. 

Of course, some might consider a long-term relationship with a bank a burden. To that end, there are some cons involved in physician mortgages. These include the increased possibility of buying “too much house” with the higher limits available with these loans, as well as higher interest rates in comparison to some conventional loans.

5 Top Idaho physician home loan lenders

Some lenders only offer physician mortgage loans to attending physicians, while other programs can lend to those still in residency or fellowship.

1. BMO Harris Bank

BMO Harris Bank is an established player in the mortgage industry that ranks 16th largest by total assets in the country. The bank offers a full range of financial products, including a physician loan to certain medical professions.

We spoke to a BMO Harris loan officer to get additional details about the doctor mortgage, many of which aren’t published. Here are some key terms and highlights:

• Program is divided between practicing Physicians and Dentists that are less than 10 years since their last training was completed (residency, fellowship, or medical school, whichever ended last) and those over 10 years.
• Less than 10 years practicing:
• 0% down up to $1,000,000
• 5% down up to $1,500,000
• 10% down up to $2,000,000
• More than 10 years:
• 10% down up to $2,000,000
• 10, 15, 20, & 30 year fixed rate or 5, 7, and 10 year ARM loans.
• No rate premium, pricing premium, or interest rate increase for using the program.
• No income history is required. They can use an offer letter or match letter that states your employer name, start date, salary, and job title. They can close the loan up to 89 days prior to the start date for the new contract. The contract can be for a W2 or 1099 pay structure as long as a guaranteed base salary/pay amount is listed.
• Reserve requirements for loans up to $400,000 equal two months PITI for the new home, for loans over $400,000 the requirements is four months PITI.
• The borrower is required to have liquid reserve funds at the time of closing, this would be required on top of any cash to close due.
• Seller credits are allowed to assist with closing costs but cannot exceed the total of closing costs and cannot exceed the amount you, as the buyer, are contributing to the purchase.
• Gift funds from a family member are allowed for any cash due at closing or down payment as well as the reserve requirements.

If you have a credit score as low as 680, BMO Harris can offer you $0 down up to $1,000,000 but it will take a credit score of 720 to get access to the full 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.

2. 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.

3. 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.

4. 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.

5. 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.

Is an Idaho physician mortgage loan a good idea for you?

At this point, you may be wondering whether or not a physician mortgage loan is the right fit for you and your lifestyle. Start by taking a close look at your career. Are you in a job to which you will stay committed for years to come? In that case, the commitment of a doctor mortgage may work out. 

How do you feel about paying a higher rate for financing? This can add up over time, but it does come with a range of benefits, as illustrated above. One aspect of a doctor mortgage that some consider a benefit is the potential of a long-term relationship with a financial institution. Is this something that you and/or your practice can benefit from? Then an Idaho physician mortgage loan may be a great option for you. 

Examples of doctors who take out physician loans in Idaho

The following examples describe just some of the doctors who are taking out physician loans in Idaho. Reviewing them can help you get to know the process and also help you determine whether a doctor mortgage suits you. 

A doctor who gets the best rate via a doctor mortgage

Many times, doctor mortgages in Idaho can come with rates that are somewhat higher than those associated with conventional loans. Richard, however, has heard about a bank in the Idaho Falls area that is offering rates on doctor mortgages that are comparable to ones in the conventional home loan space.  The bank is extending such impressive terms because it understands the value a doctor like Richard can bring to their institution over time. Richard decides to take advantage of this low rate and take out a doctor mortgage.

A dentist who prefers investments

Tammy runs a dental practice in Boise and business is booming. She has been able to invest some money towards her future and her income is more than respectable. She is looking into buying a home, but the only way she can make a down payment for a conventional loan is by liquidating some of her investments. A doctor’s mortgage in Idaho gives her another option, allowing her to finance a home and maximize her leverage. 

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.

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.