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.
City National Bank of Florida
City National Bank of Florida is a medium-sized bank with over $22 billion in assets. Although they are headquartered in Florida, they offer a physician loan in all 48 contiguous states and are eager to find physicians and other professionals as new customers.
We spoke with a loan officer at City National Bank of Florida to gather details on the doctor mortgage program. Here is what we learned:
- Physicians, Dentists, Attorneys and CPAs are eligible
- 3% down up to $650,000
- 5% down up to $850,000
- 10% down up to $1,250,000
- 10.51% down up to $2,500,000
- 15.51% down up to $3,000,000
- Primary residence and vacation homes are available (higher down payments required for secondary houses)
- Can finance condos but only with a 20% down payment
- Minimum credit score required is 660 but better rates/options require 720 credit score
- Self-employed individuals need to provide 2 years of income verification
When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.
Blueleaf Lending
Blueleaf Lending is a doctor mortgage program open to medical doctors, dentists, podiatrists, ophthalmologists and veterinarians. They are also able to work with professionals that have an employment contract (or verification of terms of employment acceptance) for purposes of qualifying your income.
We contacted a Blueleaf Lending mortgage loan officer to get more details on their physician mortgage program. Financing is available for:
- 0$ 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.
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 an Indiana physician mortgage loan right for you?
At this point, if you are seriously considering a physician mortgage loan, you may want to ask yourself a few questions:
- Are you satisfied with your current job? Make sure that you are before moving forward with a doctor mortgage.
- Are you happy to remain in your region of Indiana? Moving too soon after taking out a mortgage can put undue stress on your finances.
- Finally, are you alright with paying a higher interest rate? Though it may cost you a few extra dollars over the life of your mortgage, it may be worth it, considering the many benefits of an Indiana doctor mortgage.
Examples of doctors who take out physician loans in Indiana
Let’s take a moment now to walk through some sample narratives that describe the types of doctors who are taking out physician loans in Indiana. Reading through these just might show you that many of these individuals have needs similar to your own.
Doctor who has too much student debt
Despite just signing a contract for a high-paying position at Kindred Hospital Indiana, Deanna has been unable to qualify for a conventional home loan. Her debt-to-income ratio, or DTI ratio, is still quite high, thanks to the student debt she racked up during medical school. Turning to a physician mortgage loan is a great alternative; it gives special consideration to her student debt, and her signed contract is acceptable as proof of income.
A dentist who doesn’t have a down payment
Ethan and his wife have been saving for years. Now that his dental practice is established and doing well, they have decided to buy a home. Given housing prices these days and the stringent requirements that come with conventional loans, Ethan won’t be able to do that without wiping out most of his savings to make a big down payment. Instead, Ethan has decided to turn to a doctor mortgage. A regional bank extended friendly terms to the dentist, and he was able to get 100 percent financing on a new house.
Looking for a physician loan in a different state?
If you’re looking to explore the best physician loans in other states, click on your state below.