5 Best Physician Mortgage Loans in Maine

Famous for its beautiful New England coastline and delicious lobster rolls, Maine was the 23rd state to join on March 15, 1820. It borders the Atlantic ocean and is known as “The Pine Tree State” or “Vacationland”. Over 80% of the state is covered by forests or has gone unclaimed, but it is still home to over 1.3 million citizens, including over 4,000 doctors. 

Home sales in Maine continue to be a hot topic. The state saw home sales decline in the earlier part of this year, but not because of a lack of interest. Rather, there were too few homes to sell, according to the state’s real estate association. In the most recent month that data is available, real estate agents sold homes at a median sales price of $325,000, a value up 21.04% from the previous year at the same time. 

If you are a doctor or a dentist looking to buy a home here, the Maine physician mortgage loan program may help you do so.For those who qualify, this is a way to secure a minimal or no down payment loan. 

Pros/Cons of Maine physician mortgage loans

What are the pros and cons that go along with Maine physician mortgage loans? You may be asking just that if you are considering one of these mortgages. 

Maine physician loans come with many advantages for doctors. First, lenders extending these mortgages often give special consideration to student debt. Many doctors have DTI ratios that make getting approved for a conventional mortgage difficult. This special consideration is a real differentiator, therefore, for many doctors. Most healthcare professionals don’t have a first home to refinance, so they can’t come up with the big cash needed for a down payment. Their student loan balances are also a problem when it comes to qualifying for regular loans, too.

These mortgages also come with higher limits, allowing you to keep up with the prices in the housing market. They also do not require PMI and can come with 100 percent financing, or no money down. Borrowers can really get big benefits as healthcare professionals who have an employment contract discussing their future income potential.

What is the downside? You may get all of that at a higher interest rate. You may also need to open an account with your lending bank. Finally, you may run the risk of buying more home than you might be able to afford, due to those high limits. Loan repayment does come in the future, so make sure the monthly payment you take on is affordable based on your income level. No one wants to get buried in a mortgage payment they can’t keep up with.

Read through all the disclosures and mortgage rates available from various lenders to make the decision best for you. Since mortgage rates can vary, do your research when you have a new job and can use your contract to make a move forward. Whether you found your new full-time job in Maine on your own or worked with a recruiter, that employment contract is powerful for opened up doors with home loans. So if you find the perfect place to buy on the NMLS or with a realtor, check out doctor loans.

5 Top Maine 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. 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.

2. 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.

3. 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.

4. 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.

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 a Maine physician mortgage loan right for you?

At this point, if you are asking yourself whether you want to take out a physician loan, there are also some other issues you should consider. A mortgage is a long-term commitment— are you devoted to your current job, and do you want to stay in your part of Maine?

There is also the issue of a possible higher interest rate. That can cost you over the life of your loan, but many feel it’s a fair trade for the advantages you get with a doctor mortgage. If you are also willing to establish a checking or savings account with your lending bank, a physician mortgage may be perfect for your financing needs. 

Examples of doctors who take out physician loans in Maine

Which doctors and professionals are taking out these loans in Maine? People just like you, chances are, whose unique circumstances make a physician loan their best option. 

A dentist with a lot of student debt

Ira’s father was a dentist, and his father’s father before that, so it’s no surprise that he went into the field, too. While his parents helped him somewhat, he did have to take out a significant amount of student debt to get through school. Now that he has his Bangor practice up and running, he’s ready to plant some Maine roots. The problem is that his debt is holding him back, at least in the eyes of conventional mortgage lenders. A bank down the street is offering so-called “doctor mortgages” that give special consideration to this debt, and Ira is more than happy to take them up on that offer. 

A GP who accesses a great rate

As a general practitioner in Augusta, Mary has a good income and reliable job. Her DTI ratio is a little off due to student debt, and conventional mortgages that she qualifies for are coming with a higher rate. Since a doctor mortgage gives special consideration to her debt incurred during medical school, Mary will be able to use this doctor-friendly financing to purchase a new home at a reasonable interest rate. 

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.