5 Best Physician Mortgage Loans in Minnesota


Physician mortgage loans in Minnesota are available to medical doctors, dentists and other professionals depending on the specific loan program of the lender.

Key Terms

  • A Minnesota physician mortgage loan comes with high loan limits and options for up to 100% financing.
  • Professionals with student loan payments get special consideration of this debt under physician mortgages.
  • Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.

Outsiders may think of Minnesota as a cold weather state covered in lakes, but those that live there, including nearly 17,000 working doctors, know that this northern state is filled with beauty and points of interest. Known as the “Land of 10,000 Lakes,” the “North Star State,” and the “Gopher State,” Minnesota was the 32nd state to enter the US and is home to multiple professional sports teams. It is also home to the Mall of America. 

For many, even most doctors, owning a home in Minnesota may seem like it may be out of reach. Data from the Minneapolis Area Realtors shows the average sales price for single-family homes is $375,000. New listings increased by 3.2% over last year’s numbers.

The Minnesota physician mortgage loan program provides professionals, including dentists and doctors who meet qualifications, to obtain an affordable home loan. Some of these loans have low to no down payment requirements for borrowers. For many in the state, this is an opportunity to save and buy a home confidently.

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Advantages/Disadvantages of Minnesota physician mortgage loans

Are you considering a Minnesota physician mortgage? Then you may first want to consider both the pros and the cons that can come with these loans. While repayment is similar to traditional loans, the reduced down payment requirement and reduced focus on student loans make these physician loans appealing. A doctor loan could be the only way for a physician to purchase a piece of real estate, especially for medical residents who come in with high student loan debt and limited cash. If you have eligibility for these loans, you need to know the benefits and challenges associated with them for borrowers. Unlike credit cards or refinancing, doctor loans base the approval mostly on the employment contract and the physician’s future income potential.

The pros are many and provide a range of advantages to physicians. One huge advantage is in how they handle student debt, something that plagues many doctors and professionals. These loans treat student debt favorably, making approval a much easier process. When buying a primary residence, it can be a big sigh of relief for physicians, dentists, and veterinarians to have student loans taken out of the picture as such as negative for home loan qualification. The home buying process is much easier for medical doctors when alternative home financing like a doctor loan streamlines things and focuses more on what’s in the employment contract. A home purchase for health care professionals is an exciting time, but it can also be stressful without the right support in the loan process.

You can also be at the start of your career or job and still qualify for one of these loans. In some cases, a lender may approve you before you have even started a new job, provided you have a contract already in place. 

Some of the issues you may have with a doctor mortgage include their, at times, higher interest rates, the additional account requirements a lender may have, and the fact that high limits can cause you to get in over your head on a loan. All in, however, the lack of PMI and no money down on a doctor mortgage can swing the pendulum back in favor of these products. 

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5 Top Minnesota physician home loan lenders

If you’re ready to learn more about the best physician mortgage lenders in Minnesota, here are the top options we’ve found through our research.

1. 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.

2. 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.

3. 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.

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. Bank of England

If you thought the Bank of England was in the United Kingdom, you’ll be surprised to find out that the Bank of England is located in England, Arkansas but has the ability to lend in all 50 states (except NY).

We contacted the Bank of England to see if we could gather details about their physician loan program. Here is what we learned:

  • 0% down up to $1,000,000
  • 5% down up to $1,500,000
  • No PMI
  • Only available on 3, 5 and 7-year ARM terms
  • Program aimed at doctors who either seasoned practitioners or just out of medical school (in other words, they work with doctors of all experience levels).
  • Requires a credit score of 700
  • Requires two months of payment reserves.
  • You can be a US Citizen or a Permanent or Non-Permanent Residence.
  • They are able to exclude student loan debt in deferment or forbearance of 12+ months from the debt-to-income calculation.
  • You can only use this doctor mortgage program for single family residences, condos and two-unit properties.

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.

Should you consider a Minnesota physician mortgage loan?

How can you decide if a Louisiana physician mortgage is best for you? Start out by assessing your career and your dedication to your current region and way of life. If you live in St. Paul but are dreaming of relocating upstate, it may not be the right time. If you are happy in your work and staying put, it may be. 

Physician mortgages are also not the best fit for those who want to get the lowest interest rate. While they can come with low rates on some occasions, they do often come with rates that are higher than conventional loan averages. If you don’t mind paying a bit extra for easy financing terms, zero down and special consideration of student debt, these loans are right for you. 

Examples of doctors who take out physician loans in Minnesota

Doctors in cities, small towns and everywhere in between in Minnesota are taking out physician loans. Take a look at these sample scenarios below to see which doctors are qualifying for physician mortgage loans. 

An anesthesiologist who wants to hold onto savings

Quentin is exactly where he has always wanted to be in his medical career. As an anesthesiologist at one of the premier hospitals in the Minneapolis/St. Paul area, he has achieved all of his career goals. The time has come to buy a home, since he knows he will remain committed to his current job for years to come. He wants to hold on to his savings, however, especially since his wife has twins on the way. A doctor mortgage gives him great financing options with no money down required. 

A physician who has a lot of student debt

Working as an oncologist at the Mayo Clinic is right where Roseanna wants to be. She took out a lot of debt to get there, however, and banks offering conventional mortgages are turning her down left and right due to her debt-to-income ratio. She’s paying down her student debt and her income is on its way up, but she doesn’t want to wait to buy a home. By taking out a doctor mortgage, Roseanna will be able to buy no with very friendly terms.

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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