5 Best Physician Mortgage Loans in Michigan


Physician mortgage loans offer doctors, dentists, and other high-earning professionals in Michigan an easy way to access home financing.

Key Terms

  • Michigan physician mortgage loans offer higher loan limits than conventional loans and can include 100% financing.
  • Lenders offering physician loans in Michigan often extend favorable treatment toward student debt.
  • Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.

Bordered by four of the five Great Lakes, the Midwestern state, Michigan, is a peninsula that is actually separated into two different parts. It was the 26th state and was admitted to the US in 1837. Since then, Michigan has earned a number of nicknames, including “The Great Lake State,” “The Wolverine State,” and “The Mitten State.”

The Michigan housing market has been making some interesting moves recently. According to the Michigan Realtors Association, the average sale price was $253,557, which is a growth of 5.29% from the year prior. These figures show the demand for homes and the lack of inventory that has caused concern in some areas as it drives up home values. 

As a dentist or one of the over 28,000 doctors living and working in the state, you may wish to consider the Michigan physician mortgage loan program if you hope to buy a home in the state. This program may enable qualified professionals to secure a low- or no-down-payment home loan. 

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Pros/Cons of Michigan doctor mortgage loans

Are you considering a Michigan physician mortgage loan? You will likely want to think about both the pros and cons that can come with these loans. Since most medical residents or medical school graduates don’t have a first property to refinance, it can be hard to come up with the down payment required for a traditional loan. With an employment contract in hand, however, you’re more easily able to find a perfect place through a realtor or a NMLS search and use that instead to qualify for a doctor loan.

If you’re seeking a primary residence but concerned about budgeting for that down payment or lower credit scores from high student loan or credit card balances, do your research to see is physician mortgage loans are an option.

Physician loans for Michigan professional offer a range of advantages, including:

  • Higher loan limits that allow you to put in offers on a wider array of homes
  • Special treatment of student debt, which can be considerable for doctors and other professionals
  • No required PMI payments

Perhaps the biggest advantage with a doctor mortgage? You may likely qualify for one with little to no money. This can be a big “pro” when many conventional loans require down payments as high as 20 percent. This can be a substantial amount for healthcare homeowners because of the purchase price of homes they are looking at. With a traditional loan, it’s easy to feel like new home ownership is just out of reach. Thankfully, doctor home loans might be a potential solution so long as the doctor knows all the details about repayment and the life of the loan.

And the cons? There are some, though they may not outweigh the pros. Some downsides of physician loans include higher interest rates in some instances and the fact that you may need to open an account with the lending bank. In some rare instances, borrowers may buy more house than they need with a doctor mortgage, due to the higher limits available. 

As with any search, knowing the right mortgage lenders and comparing interest rates, mortgage payments, closing costs, and other details can help you decide which bank to work with. Make sure you’re budgeting for all expenses in your new job, too, so that your monthly payment for the mortgage doesn’t get too high.

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5 Top Michigan physician home loan lenders

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

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

Is a Michigan physician mortgage loan right for you?

Deciding on a financial commitment such as a physician mortgage loan means taking careful stock of all the implications involved and how it will impact your life. Do you intend to stay in your town for many years to come, or in your job for the same period of time? Then entering into a doctor mortgage may work for you. 

Are you okay with potentially paying a higher interest rate? It may cost you more over the life of your loan, but you may also find that to be worth it, since you get so many benefits with these loans. Take into consideration that you will have a relationship with the lender for years to come; this can help you or your practice in the future. 

Examples of physicians who take out physician home loans in Michigan

Let’s take a moment now to discuss who the doctors are that are taking out physician loans in Michigan. You may find that their stories are similar to yours.   

Doctor who hasn’t yet saved up a down payment

Many doctors work hard during medical school, both in the classroom and out, but few come out of their studies with much in savings. When student debt is added into the equation, taking out a mortgage can be difficult. That is definitely the case with Sasha, who recently began a residency at University of Michigan hospital. While she is on track to be a high earner since her specialty is in orthopedics, she doesn’t have money for a down payment yet. She could wait and try to qualify for a conventional loan once she saves up, but she wants to settle down now. A physician loan will allow her to buy a home with 100 percent financing and get her life on track ASAP. 

Doctor who wants to maximize leverage

Max has spent the better part of a decade building his family practice. Today, he has solid savings established and a portfolio of investments that are performing well. He and his wife want to buy a home for their family. In order to do so, he would have to use a good part of his savings or liquidate some investments to make a down payment. Proceeding, instead, with a doctor mortgage will allow him to maximize his leverage, retain the cushion of his savings and purchase a home with little to no down payment. 

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.

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Joshua Holt

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.

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