5 Best Physician Mortgage Loans in Mississippi


Physician mortgage loans in Mississippi are available to medical doctors looking for 100% financing and no private mortgage insurance.

Key Terms

  • Student loan payments typically receive favorable treatment with a doctor loan, making it easier to qualify for a mortgage.
  • A Mississippi physician mortgage loan comes with high loan limits and options for up to 100% financing.
  • Borrowers can enjoy favorable treatment of student loan payments, streamlining qualification for a loan.

Known as the “Magnolia State” or “The Hospitality State,” Mississippi sits on the Gulf Coast and is bordered by Tennessee, Alabama, Louisiana, and Arkansas. This southern state was the 20th  to enter the Union in 1817. It offers a range of beautiful natural sites to visit and tour, including the Gulf Islands National Seashore, and is home to over 5,700 working physicians

For many, including doctors, owning a home in Mississippi may seem out of reach. Data from Fortune Builders shows the average sales price for single-family homes is $254,110. Thirty-five percent of the homes are sold above list price, making it even harder to understand the true cost of home ownership.

As a doctor or a dentist thinking about buying a home in Mississippi, a physician mortgage loan program may offer financial support to help you into a new house. For those who qualify, it may be possible to buy a home with no down payment or low down payment, making it more affordable to do so.

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Reasons to consider a Mississippi physician mortgage loan

To start, let’s take a moment to consider the pros and cons of going with one of these financial products for doctors. The list of pros includes a number of winners:

  • High loan limits that go as high as $2.5 million in some cases, far outperforming conventional loans
  • No required Private Mortgage Insurance
  • Special consideration for student debt

Doctors applying for a doctor mortgage can also enjoy another perk, in some scenarios; some lenders may approve you for a loan before you have actually begun work in a contracted position. Most doctors don’t have another home to refinance or pull equity from, so that can make the home buying process hard for them as a new healthcare professional.

And the cons? There are some, though they may not outweigh the pros. Cons include higher interest rates on some of these loans and the fact that a lender may ask that you open an account with their bank. It’s also “easy money” and so quite possible to buy a larger house than you intended. The terms on the loan may be good but you still have to pay it back and those are dollars that you aren’t investing in retirement accounts or the stock market. Remember that loan repayment is usually spread out over 30 years, and that’s a long time for a high mortgage payment.

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5 Top Mississippi physician home loan lenders

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

1. City National Bank of Florida

City National Bank of Florida is a medium-sized bank with over $22 billion in assets. Although they are headquartered in Florida, they offer a physician loan in all 48 contiguous states and are eager to find physicians and other professionals as new customers.

We spoke with a loan officer at City National Bank of Florida to gather details on the doctor mortgage program. Here is what we learned:

  • Physicians, Dentists, Attorneys and CPAs are eligible
  • 3% down up to $650,000
  • 5% down up to $850,000
  • 10% down up to $1,250,000
  • 10.51% down up to $2,500,000
  • 15.51% down up to $3,000,000
  • Primary residence and vacation homes are available (higher down payments required for secondary houses)
  • Can finance condos but only with a 20% down payment
  • Minimum credit score required is 660 but better rates/options require 720 credit score
  • Self-employed individuals need to provide 2 years of income verification

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. 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.

3. 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.

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. 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.

Is a Mississippi physician mortgage loan right for you?

Are you wondering if a Mississippi doctor mortgage is right for you? Take a second to consider the nature of your employment. Are you happily employed? Do you intend to stay in that job for years to come? Then making the commitment to a doctor mortgage can be a great choice, giving you access to easier financing for a home. 

What is your opinion on perhaps taking on a higher interest rate? Some doctors may bristle at having to pay “extra” for financing. Others might see this as a good price to pay for the myriad benefits that come with physician loans. 

If you’re a provider looking for a new home, check out these doctor loan programs in your search. Review your eligibility for these home financing programs and then speak to a realtor about using the NMLS to find a great place to live. Once you know what you qualify for, the home buying process may get much easier with doctor home loans.

Examples of physicians who take out doctor mortgages in Mississippi

Now let’s transition to taking a look at some of the doctors who are taking out these loans in Mississippi. You might find that their stories are very much like yours. 

Doctor who is still saving up for a down payment

Tammy spent a lot of her own money and ran up a good deal of student debt to get through medical school. It was all worth it, as she is now about to start a residency at Forrest General Hospital in Hattiesburg. She wants to settle down now and purchase a home for her family since she likes the area and is certain she will want to stay in Hattiesburg for years to come. 

She hasn’t been able to save enough for a down payment on a conventional loan, however, especially given the high prices in the housing market. A doctor mortgage is just the help she needs, allowing her to receive 100 percent financing and even approving her before she begins her residency. 

A cardiologist who wants to maximize stock investments

Working as a cardiologist at University of Mississippi Medical Center is the culmination of years of dreaming for Shonda. Her reputation is great, she gets on with colleagues, and her income is more than respectable. She has even been able to make some investments and build up a respectable portfolio for retirement. 

While she thinks it’s a good time to buy a home, she doesn’t necessarily want to liquidate any of her investments. Turning to a physician loan allows her to maximize her leverage, retain her holdings and add a home to her already impressive portfolio. 

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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