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 $400,000 if unlicensed)
- No more than 10 years out of residency
- Self-employed professionals are eligible with a two-year history of self-employment income
- New medical professional graduates who are under contract for residency within 60 days of closing and have not yet obtained a license are eligible
- No private mortgage insurance
- 40% max debt-to-income ratio
- Student loan debt that’s deferred for more than 12 months from the date of closing can be excluded from DTI calculations
- Construction-to-permanent loans available with a maximum of 89% financing
- Fixed rate or adjustable-rate mortgage options
- Interest-only option on certain adjustable-rate mortgage options (max financing at 89%)
When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.
Blueleaf Lending is a doctor mortgage program open to medical doctors, dentists, podiatrists, ophthalmologists and veterinarians. They are also able to work with professionals that have an employment contract (or verification of terms of employment acceptance) for purposes of qualifying your income.
We contacted a Blueleaf Lending mortgage loan officer to get more details on their physician mortgage program. Financing is available for:
- 0$ 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.
Is a Kentucky physician mortgage loan right for you?
If you are taking the time to consider a Kentucky physician mortgage, you may want to ask yourself some key questions. A mortgage is a real commitment, and you should only enter into one if you know you will be staying in your region for years to come. To that end, consider how satisfied you are in your current job and area.
Next, remember that a higher interest rate can translate into a good bit of money by the time you make that final payment on your mortgage. If this is something you think is worth it, given that you can enjoy an easier approval process with higher limits, then a Kentucky doctor mortgage may be great for you.
Examples of doctors who take out physician loans in Kentucky
Let’s segue now to talking about some of the doctors and professionals in Kentucky that are taking out physician loans. You might be surprised at how similar their stories are to yours.
Fellow who has a lot of student debt
Having just landed one of only six fellowships offered by the Cardiovascular Division at the University of Louisville, Henry is on track to do very well in his career and earn a good salary. For the time being, however, he still has some serious student debt to consider. That debt has been holding him back from buying a home, even though he’s ready to settle down in the Greater Louisville area.
Banks aren’t happy with his DTI ratio, despite his great earning potential. Fortunately for Henry, a local bank is offering doctor mortgages and giving special consideration to his student debt. He will be able to access a mortgage and buy the home he needs.
Doctor who doesn’t have a down payment
One might think that given her salary and how careful she has been with money that Denise would be ready to make a down payment on a home. The truth is, however, that her student loan payments have been slowing her savings down. Plus, housing prices are such that even 10% is a lot. Luckily, Denise can access a physician mortgage in Kentucky, allowing her to purchase a home with no money down.
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.