6 Best Physician Mortgage Loans in Illinois

Going by quite a few nicknames, including “Land of Lincoln,” “Prairie State,” and “The Inland Empire State,” Illinois offers a diverse array of things to those looking to come to this state. From professional sports teams to the architectural masterpieces of Chicago and the shoreline along Lake Michigan, Illinois has something for everyone, including the 36,000 doctors living in this midwestern state. 

Statewide home sales in Illinois for May of 2022 were over 16,100 homes sold. That’s about a 10 percent decline from the same time in May of 2021. However, it only took 24 days on the market, on average, for homes to sell. Another important factor when considering real estate in Illinois is the value of homes. Statewide mediums were up 6.2 percent to $276,000, according to the Illinois Realtors Association.

For those who are doctors or dentists and considering the purchase of a home here, the Illinois physician’s mortgage loan program may offer a way to do so affordably, including with minimal or no down payment requirements for that great property found on the NMLS.

Physician mortgage loans pros/cons in Illinois

What are some of the pros and cons involved in Illinois physician mortgage loans? Familiarizing yourself with all aspects of these loans can help you decide whether or not to move forward with a doctor mortgage. It’s a great way to get into homeownership, but keep that future mortgage payment in mind, too.

For medical residents and new medical school graduates, it’s unlikely you have saved enough to set aside a big down payment. It’s hard to qualify for a traditional loan with your high student loan amounts often needed for medical school, either. Medical doctors can use physician mortgage loans to expand their purchase and low down payment options.

The pros offer a lot, especially to doctors, dentists and other professionals who are still carrying debt from their studies. With a doctor mortgage in Illinois, you can benefit from:

• No PMI payments, saving you a significant amount;
• High loan limits that widen the pool of houses from which you can choose a home;
• 100 percent financing, or no money down

For some, the downsides may outweigh these advantages. Going with an Illinois physician mortgage loan means that you may have a higher interest rate on your financing, for one. It is also easier to potentially buy a more expensive house than you can necessarily afford, given the high limits on these loans. You may also need to open an account with your lender, adding yet another financial commitment to the mix.

Be prepared for repayment amounts and factor that carefully into your budget. Despite these cons, many Illinois professionals still decide to move forward with physician loans, enjoying the favorable treatment of student debt and other “pros.”

6 Top Illinois physician home loan lenders

If you’re ready to learn more about the best physician mortgage lenders in Illinois, here are the top 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.

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.

Wintrust Mortgage

Wintrust Mortgage is based in Denver, Colorado and is part of the Wintrust Financial Corporation. The company offers mortgage services throughout the United States and an in addition to standard mortgage products has a competitive doctor mortgage program.

We contacted a loan officer at Wintrust Mortgage to learn more about their physician loan program and the detailed requirements for eligibility. Here are the key points:

• Established Professional:
• 5% down up to $650,000 (PMI required)
• 10% down up to $1,000,000
• 15% down up to $2,000,000
• 20% down up to $2,500,000
• 25% down up to $3,000,000
• New Professional:
• 5% down up to $650,000 (PMI required)
• 10% down up to $600,000
• 15% down up to $1,000,000
• Eligible degrees: MD, DDS, DMD, DO, DPM and Veterinarians
• Minimum credit score is 700
• 5/1, 7/1, 10/1 Adjustable Rate Mortgages (ARM)
• Deferred medical student debt may not affect your qualifying loan amount
• Purchase and rate/term refinance for primary residence
• Non-Occupant Co-Borrowers Allowed

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.

Is an Illinois physician mortgage a good idea?

That may certainly be the case, but take the time to ask yourself a few questions in advance. 

An initial question you should ask yourself is how much you enjoy your current job and how long you will stay in that position. Committing to a mortgage is best done when you know for certain that you will be staying in place for a long time. If you have been in your current position for a year or two and can foresee yourself staying in that job, a doctor mortgage may be a great option. 

You also need to consider your comfort level with the higher interest rates that can sometimes happen with physician loans. The upside of the higher interest rate that can come with a doctor mortgage is that you can access the many benefits of this financial product, including special consideration of student debt. If those benefits outweigh the added cost of a higher interest rate, a physician mortgage loan is right for you. 

Examples of doctors who take out physician loans in Illinois

Who are some of the individuals in Illinois who are taking advantage of physician loans? They include doctors, dentists and professionals of all stripes whose financial pictures make a doctor mortgage their best option for financing a home. 

Cardiologist who has a good deal of student debt

Having just signed the contract on a new job at Chicago’s #1 hospital, Northwestern Memorial, Jamal is quite satisfied with how his career is going. He and his young wife are hoping to buy a home, based on his high salary in his new position. Conventional loans don’t seem to be a good fit, however; Jamal’s student debt is throwing his DTI ratio off, and banks are not pre-approving him for financing.

Fortunately for Jamal and his growing family, a lender offering doctor mortgages understands exactly why young doctors like him have so much debt. Their special consideration of this debt and their commitment to Jamal as a customer means that a physician mortgage loan can provide him and his family with the financing they need to buy their first home. 

Emergency room doctor who gets the best rate with a physician loan

Getting a good interest rate has always been a priority for Moira. For that reason, she put off taking out a physician loan a few years back. A local bank in Springfield is currently offering a doctor mortgage with a competitive rate, and now Moira is interested. Saving thousands over the life of a mortgage sounds great to her, and she’s happy to be able to take advantage of this financial product. 

Looking for a physician loan in a different state?

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