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.
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.
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.
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.