6 Best Physician Mortgage Loans in Massachusetts

Massachusetts has a number of nicknames that it goes by. These include “The Bay State,” “The Pilgrim State,” and “The Puritan State.” It is an East Coast state bordering the Atlantic Ocean and is part of the New England area of states. It is where the Boston Tea Party occurred, and it was the sixth state to join the US. It is also home to over 31,000 working physicians, according to the American Association of Medical Colleges. 

The Massachusetts Association of Realtors provides some helpful insights into the housing market in the state of Massachusetts. The median home price for single-family homes in May was $617,750, and for condominiums, the median price was $531,501. The state saw 6,065 sales during that month, which is up from 5,975 the year before.

In Massachusetts, physician mortgage loan programs create an opportunity for those thinking about buying a home to secure one with little or no down payment. That applies to professionals, including doctors and dentists, who are interested in buying a home in the state. If you need a home loan but traditional options don’t give you what you need, you might qualify for a doctor home loan.

The pros and cons of taking out a Massachusetts physician mortgage loan

Taking out a Massachusetts physician mortgage loan can give doctors a much easier way to finance a home. How so? Well, for one, these financial products give very favorable consideration to student debt— a burden many doctors and other professionals carry well into their careers. These mortgages also come with high limits, making it easier to afford homes in Massachusetts. You also do not have to purchase Private Mortgage Insurance, or PMI, with these loans, lowering your cost burden somewhat. 

Since medical school leaves many healthcare professionals with high student loan debt, maxed out credit cards, and limited income from residency, it can be hard to qualify for the perfect home you found on the NMLS without getting a doctor loan.

There are some cons that come with these loans, too. You may have a higher interest rate with one of these loans as compared to conventional loan options. A higher limit, too, can give you more options, but can also cause you to get a more expensive home than you might need. Your future mortgage payment might be hard to keep up with if you’re not careful. Make sure you look at your budget for monthly payment if you’re pursuing this path to homeownership so that loan repayment is within reach.

6 Best doctor loan lenders in Massachusetts

If you’re in the market for a home in Massachusetts, consider these physician mortgage loans that are available to state residents.

Berkshire Bank

There are some banks that make a big deal out of their physician mortgage program, and then there are other banks like Berkshire that don’t even feel the need to mention it on their website.

For those banks, you really need to be in the know about the program if you want to see if they are offering competitive rates during that one moment when you’re buying a house.

We did the hard work for you though and have already contacted Berkshire Bank to learn more about their physician loan. Here is what you need to know:

• 0% Down up to $1,000,000
• 5% Down up to $1,250,000
• 10% Down up to $2,000,000
• Primary residences, vacation properties and investment properties eligible (although higher down payments may be required).
• Credit score minimum of 660 needed. However, since Berkshire Bank is a true portfolio lender, they can make certain exceptions for some FICO scores.
• Can also finance non-warrantable condos and multi-family homes.
• If you are purchasing a home and have some special conditions, using a portfolio lender that isn’t beholden to the parameters the investor has already agreed to purchase can be helpful.

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.

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.

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 a Massachusetts physician mortgage loan right for you?

Now that you have reviewed the many lender options you have access to in the Bay State, you may be wondering if a doctor mortgage is the right fit. Take a look, first, at your career. If you are in a position you love and that you will stay with for years to come, these mortgages are great options. If you plan on relocating sometime soon, they might not be the best options. 

Your lender may also want you to open up an account with them, meaning that you will establish a long-term relationship with their bank. If you don’t mind that fact or the fact that you may have a higher interest rate, you are likely a good match for a Massachusetts physician loan. 

Hypothetical doctors who could use physician loans in Massachusetts

Doctors from Plymouth to Northampton are all taking advantage of these loans designed for high earners. Are you one of those professionals? Review the stories below to see if your situation matches up with the individuals taking out doctor mortgages in Massachusetts. 

A physician who found a great rate with a doctor mortgage

With interest rates on the rise, Matilda is eager to find a mortgage with the lowest rate possible. Although she is a high earner, she still is carrying a bit of student debt. The conventional loans that she has qualified for are all, therefore, coming with higher rates. She recently heard about a bank in the Amherst region that is offering low interest mortgages to doctors like her, along with favorable treatment of her student debt. It’s by far the best option out there for her in this economy, and comes with the added benefit of a higher limit that can help her afford Massachusetts prices. 

An endodontist who doesn’t have a down payment

Working as an endodontist in the Greater Boston area has proven lucrative for Tim. His practice is thriving and his income is more than respectable. He put a lot of extra time and money into building that practice, and he doesn’t necessarily have the down payment he would need for a conventional mortgage. A physician loan gives him what he needs, offering financing for a home with little 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.