5 Best Physician Mortgage Loans in Nebraska


Getting a physician mortgage loan in Nebraska could be a good idea if you’re looking for 100% financing and no down payment.

Key Terms

  • A Nebraska physician mortgage loan comes with high loan limits and options for up to 100% financing.
  • Payments on student loans often receive favorable treatment with these mortgages, making it easier for doctors and other professionals.
  • Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.

Commonly called the “Cornhusker State,” Nebraska is at the heart of the Midwest in the United States. Nebraska has many things to offer people who wish to live there, including some 4,600 working physicians. This landlocked state is bordered by South Dakota, Missouri, Kansas, Colorado, and Wyoming, and was the 37th state to join the country in 1867. 

Owning a home in Nebraska may seem like a bit of a reach for some citizens, even its doctors. According to the Nebraska Realtors Association, the average home price in Nebraska is $206,888. 17.6% of the homes were built after 2000 and 72.2% of the homes are single-family units. 64.4% of the people in Nebraska own their homes, while 35.6% are renters.

For doctors and dentists, now may be the time to consider buying a home here. Nebraska also has plenty of shortage areas where physicians are truly needed. You might be able to get a great employment offer in these shortage areas and then use a doctor loan to get that property. A Nebraska Physician mortgage loan program may be able to help. Qualified individuals may be able to secure a minimal down payment or not pay one at all based mostly on your employment contract and future start date.

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Positives/negatives of Nebraska physician mortgage loans

As with any major commitment, it’s crucial to consider both the pros and cons when deciding on a mortgage. Nebraska physician loans come with a range of benefits, including:

  • Favorable treatment of student debt by lenders
  • Little or no money down
  • Approval off of a signed contract, in some cases
  • No PMI

What are the cons, if any, associated with these loans? Nebraskan doctors may want to keep in mind that all of those benefits come with higher interest rates, typically.  You may also need to open a secondary account with your lending bank in order to consolidate your long-term financial relationship with them. 

Not all doctor loans are created equal, so it’s good to know the specifics of each loan program before you apply. For healthcare professionals looking for a new home, a realtor might be able to scour the NMLS for you to find a range of homes you like. This gives you an initial idea of your possible budget for a new home. Also think about whether a lender has strict rules on whether you can refinance a property in the future if you face any pre-payment penalties.

Sometimes doctors use signing bonuses or housing bonuses to help reduce a mortgage payment, so knowing about these factors is important when selecting a lender. Talk about eligibility concerns with each lender if you’ve already got a start date for your new role.

Health professionals might look at many different factors when selecting a lender to work with on doctor loans, so make sure you read below to learn more about what each lender looks at and their experience with physician mortgage loans. As a path to homeownership and finding a primary residence, doctor loans might be perfect for many different kinds of providers.

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5 Top Nebraska physician home loan lenders

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

1. Citizens Bank

Citizens Bank is one of the largest banks in the United 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.

2. 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.

3. Alerus Mortgage

Alerus Financial Corporation is a publicly traded chain of financial institutions headquartered in North Dakota. They offer banking, mortgage, wealth management and retirement services, including a physician loan for those doctors looking to buy a house.

We contacted a loan officer at Alerus to learn more about their physician loan program and here are the key terms that you need to know:

  • Must be within your first two years of practice to qualify.
  • 0% down up to $750,000
  • 5% down up to $1,000,000
  • ARM and fixed rate financing available

Alerus also has a special $20,000 closing guarantee with all mortgages. The $20,000 guarantee is paid to the seller if the loan does not close based on the conditions and expiration date of the approval as outlined in the Alerus pre-approval letter.

In other words, this $20,000 guarantee gives you extra negotiation leverage when competing with all-cash home purchase price offers. If your mortgage doesn’t close, the seller is compensated $20,000 for their trouble.

Of course there’s some fine print on the guaranty so keep in mind that it’s not available for new construction and isn’t applicable if:

  • Borrower, seller or any third party cause the delay or elect not to close on the real estate sale.
  • Borrower fails to sign required disclosures or provide key documents by the requested due date.

The $20,000 guarantee, if applicable, is available to the seller only and not any of seller’s agents, representatives or related parties.

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.

4. First National Bank of Omaha

First National Bank of Omaha may sound like a community bank but they are able to lend to many states in the Midwest and Texas. With $17 billion in assets they  count as a medium-sized bank, perfect for your needs as a lender. Their physician loan is also a competitive product.

We spoke to a loan officer at First National Bank of Omaha to learn more about their doctor mortgage. Here are the highlights:

  • 0% down up to $600,000 (requires 4 months of reserves)
  • 5% down up to $850,000 (requires 4 months of reserves)
  • 10% down up to $1,250,000 (requires 6 months reserves)
  • For non-doctor professionals: 5% down up to $750,000 and 10% down up to $1,000,000
  • Minimum credit score is 720
  • No private mortgage insurance
  • Student loan deferment options
  • Employment contracts that have been fully executed with no contingencies. Must start work within 90 days of closing
  • 30 year fixed rate loans and 10/1 ARM loan options. 10/1 ARM loans offered at a discounted rate, fixed for the first 10 years.

When you’re ready to connect with a loan officer experienced in doctor mortgages, use our form to quickly match with physician 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 you 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 Nebraska physician mortgage a good idea for you?

Is a Nebraska doctor mortgage a good choice for you? First off, consider your DTI ratio, or debt-to-income ratio. For many doctors, this number may prohibit them from qualifying for a conventional loan, since becoming a doctor often involves incurring a good deal of debt. A doctor mortgage may be right for you if your DTI ratio is still high, despite your impressive earnings. 

Next, take a look at your work and lifestyle. If you have been in your job for more than a year or two and foresee yourself staying in Nebraska, taking out a mortgage is a good fit. You also need to gauge your comfort level with paying a potentially high interest rate on this loan. 

Examples of doctors who take out physician loans in Nebraska

Who are the medical professionals in Nebraska taking out physician loans? The following are a few portraits of these professionals, the description of whom may sound similar to your own situation. 

Doctor with a good deal of student debt

As a resident at , Veronica’s income is good, and she’s on path to have some impressive income since she is specializing in orthopedics. For the time being, however, her DTI ratio is not looking good to most lenders, given the amount of debt she incurred in medical school and the fact that her income has not yet reached its full potential. Taking out a physician mortgage loan is the best way for her to buy a home. It gives her special consideration of her debt, and the lender understands that she is on track to be a high-earning professional in the very near future. 

Doctor who wants the benefits of a physician loan and a good rate

Working as a pediatrician has been gratifying for Frank. His Lincoln practice is doing well and he has become a leader in his field. On the lookout for a home, Frank is weighing all of his options. Physician loans look great with their higher limits, no PMI and zero money down, but he hasn’t been crazy about some of the rates that he has seen. Fortunately, he came across one regional lender in Nebraska who is offering a doctor mortgage at a competitive rate. He’s decided to move forward with this option, since he gets the benefits of one of these loans along with a great interest rate. 

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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