8 Best Physician Mortgage Loans in New York

A member of the original 13 colonies, New York was the 11th state to join the union in those early days. Today, it shares a border with the Canadian provinces of Quebec and Ontario. It is home to the Stock Exchange as well as a number of professional sports teams. 

While many associate it primarily with the five boroughs of New York City, it actually has much more to offer, including the Adirondacks and the Gunks rock climbing area. Many professionals call the “Empire State” home, including over 73,000 doctors. 

For many, homeownership in New York may seem out of reach. Data from the New York State Association of Realtors shows the average sales price for single-family homes is $480,000. Those numbers go up significantly if you’re looking to buy a place in NYC, Westchester or Long Island.

A New York physician mortgage loan program provides an opportunity to help you to buy into this market if you are a doctor or a dentist and meet the other qualifications. Those who do qualify may be able to buy or refinance property with a loan that has a low or no down payment requirement. Physician loans also typically have much higher loan limits than conventional mortgages, making them useful for people buying in NYC.

Pros/Cons of New York physician mortgage loans

Any financial decision on the scale of a mortgage requires careful consideration. As with most things in life, New York physician mortgage loans come with both pluses and minuses. Let’s start with the pros:

• Physician mortgages often come with 100 percent financing; otherwise, it takes very little money down to qualify for one of these loans
• Doctor mortgages do not require any Private Mortgage Insurance, offering borrowers some savings 
• These loans also give special consideration to student loan repayment, a problem that plagues many doctors and professionals. 
• You can enjoy high limits on these mortgages, meaning that you will be able to look at a wider range of homes

Of course, there are some issues with these loans that you could characterize as “cons.” They do often come with higher interest rates, meaning they will cost you more to finance than conventional loans. A lender may also write it into the contract that you have to hold an account with them, as well. 

8 Best New York physician home loan lenders

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

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 checking and savings accounts, credit cards and 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 ( =no veterinarians)
• 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 and refinancing, use our form to quickly match with eligible loan programs based on your specific circumstances.

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.

Berkshire Bank

There are some banks that make a big deal out of their physician mortgage program, and then there are other banks like Berkshire that don’t even feel the need to mention it on their website.

For those banks, you really need to be in the know about the program if you want to see if they are offering competitive rates during that one moment when you’re buying a house.

We did the hard work for you though and have already contacted Berkshire Bank to learn more about their physician loan. Here is what you need to know:

• 0% Down up to $1,000,000
• 5% Down up to $1,250,000
• 10% Down up to $2,000,000
• Primary residences, vacation properties and investment properties eligible (although higher down payments may be required).
• Credit score minimum of 660 needed. However, since Berkshire Bank is a true portfolio lender, they can make certain exceptions for some FICO scores.
• Can also finance non-warrantable condos and multi-family homes.
• If you are purchasing a home and have some special conditions, using a portfolio lender that isn’t beholden to the parameters the investor has already agreed to purchase can be helpful.

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.

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 professors 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.

Is a New York physician mortgage loan a good idea for you?

How can you determine whether a doctor mortgage works for you? Start off by considering how much student and medical school debt you still have. Even if you are now a high earner thanks to your medical degree, the volume of student debt you are carrying may still prevent you from qualifying for a conventional loan. A physician loan can be a very reliable alternative. 

Keep in mind that this easier approval process can come at a cost. You may need to pay a higher interest rate, resulting in higher mortgage payments, so make sure that you are comfortable with that before taking out a physician mortgage loan. 

Examples of doctors who take out doctor mortgages in New York

Who are the medical professionals in New York taking out physician loans? Their stories may sound very much like your own experience as a doctor or dentist in the Empire State. 

Doctor who doesn’t have down payment

Living in Manhattan and working at Mt. Sinai is a dream for William, who grew up just across the river in Jersey City. The city has become expensive, however, too expensive for even an attending to buy a place to live on his own. He will need at least 150k to put down on a purchase financed through a conventional loan. Not wanting to delay and wait the years it will take to save that much, he’s decided to move forward with a physician loan that requires almost no money down. 

Doctor who wants to maximize leverage

Upstate New York is where Mary grew up. She loves the winter, the Bills, and running her peds practice in downtown Buffalo. She is interested in buying a home that just came on to the real estate market, but she doesn’t want to use too much of her savings to do that. A doctor mortgage is offering her 100 percent financing on the purchase, allowing her to buy without dinging her savings at all. 

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.