6 Best Physician Mortgage Loans in North Carolina


Physician mortgage loans in North Carolina offer favorable treatment of student loan debt, 0% financing options and don’t require private mortgage insurance.

Key Terms

  • Physicians have access to competitive interest rates for high loan amounts up to $2.5 million or more, depending on the physician mortgage lender.
  • Student loan payments typically receive favorable treatment with a doctor loan, making it easier to qualify for a mortgage.
  • Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.

The twelfth state to join the United States in 1789, North Carolina is home to the largest research park in the US named Research Triangle Park. The state is bordered by the Atlantic Ocean, Virginia, Georgia, South Carolina, and Tennessee and is home to a wide range of professionals, including almost 27,000 working physicians

For many citizens of the state, the thought of owning a home in North Carolina may seem out of reach. According to the Canopy Realtor Association, the average cost of a home for sale in North Carolina is $328,168. 

As a doctor or a dentist, buying a home in North Carolina may be more accessible than you realize. The state’s physician mortgage loan program allows many to buy a home without a large down payment requirement. Some may also qualify for no down payment loans as well.

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Advantages and disadvantages of North Carolina physician mortgage loans

If you are looking into a North Carolina physician mortgage loan, you may want to take the time to look at the upsides and downsides of these loans. Understanding all that is involved can provide the clarity needed to make the best decision. 

The Pros of a North Carolina doctor mortgage:

  • 100 percent financing, in many cases
  • Doctors can qualify based on a signed contract, in some scenarios
  • No PMI required
  • Favorable treatment of student loan repayments

Most new physicians don’t have another property to refinance and want to start fresh in North Carolina with a new home. This can make getting access to the right funds for a down payment a real challenge for a medical student or medical resident. Thankfully, borrowers can use a doctor loan program to bridge the gap, making the home buying process an easier one. With more flexible down payment options, this opens up more possibilities to buy real estate for healthcare professionals.

The cons of a North Carolina doctor mortgage:

  • High limits can cause you to run up too much additional debt
  • Lenders sometimes require additional, open accounts

Additionally, these loans can sometimes come with interest rates that are higher than those associated with conventional loans. Providers should always do their research about monthly payments, low down payment requirements, interest rates, credit scores required, and more when deciding to go forward with a home purchase under a doctor loan. Qualifying physicians can get a new home that allows them to start off in their new job on the right foot when a conventional mortgage or VA loan just don’t give enough flexibility for the unique position of a doctor.

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6 Best physician home loan lenders in North Carolina 

Some lenders only offer physician mortgage loans to attending physicians, while other programs can lend to those still in residency or fellowship.

1. First Horizon Bank

First Horizon Bank is a full-service bank located in Memphis, Tennessee. They recently completed a merger with Iberia Bank and are scheduled to be merged into TD Bank in 2023, making this an active bank. They also happen to have a competitive doctor mortgage program.

We spoke with a loan officer at First Horizon Bank to get some inside information on its doctor mortgage program for you. Here’s what you need to know:

  • 0% down up to $1,500,000
  • 30 Year Fixed Rate
  • ARMs available
  • Primary residences only
  • Student loan debt is not included in calculating debt-to-income ratio when deferred for more than 12 months.
  • Maximum financing amount is $2 million
  • No PMI
  • No pre-payment 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.

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. Keybank

Keybank has over $170 billion in assets and is the 24th largest bank in the Untied States. They operate throughout 39 states but can originate mortgages in nearly all 50, making them a popular choice among medical doctors throughout the country. One of their key financial products is a physician loan.

While Keybank doesn’t post a lot of information about their doctor mortgage online, we were able to get in touch with a loan officer at the bank to get all the important details. See below for an overview of the program details:

  • 0% down up to $1,000,000
  • 5% down up to $1,500,000
  • 15% down up to $2,000,000
  • No private mortgage insurance
  • Gifts permitted for down payments
  • Can close on the strength of an employment contract up to 90 days prior to the start of employment
  • Minimum credit score is 700
  • Student loan debt can be calculated based on income driven student loan payments
  • Fixed loans offered in 10, 15, 20, 25 or 30-year terms
  • Adjustable-rate mortgages offered in 5/6, 7/6 and 10/6 options
  • No minimum or maximum years in practice for eligibility
  • Reserve requirements are: 2 months (loans under $500K), 4 months (loans between $500K – $750L), 6 months for loans over $750K plus an additional 2 months if closing prior to start date. Retirement accounts count toward reserve requirements.
  • US Citizens, Permanent Residents and H1B Visa holders are eligible
  • California loans require a minimum of 5% down

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 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.

5. TD Bank

TD Bank is one of the largest banks in the United States. While primarily operating on the east coast, in recent years they have expanded their footprint through a series of acquisitions and now rank as one of the top 10 banks in the country. The bank offers a full suite of financial products, including a physician loan.

We reached out to a loan officer at TD Bank to find out more details about their doctor mortgage. Our key takeaways and program highlights are below:

  • 0% down up to $750,000
  • 5% down up to $1,250,000
  • 10% down up to $1,500,000
  • The following degrees qualify: practicing physician (MD, DO or DPM), dentist (DDS or DMD) and oral surgeon.
  • Licensed medical resident or fellow and licensed dental resident or fellow qualifies
  • If self employed doctor or dentist, you must have owned your practice or have been otherwise self-employed for at least two years
  • Available property types: single family residence, condominium, co-op (in specific markets only) and property in a planned unit development (PUD).
  • Fixed or adjustable rate loans available
  • No private mortgage insurance
  • Flexible approach to debt-to-income understanding that medical professionals have significant student loan debt
  • Contract for new employment can be used to qualify for mortgage
  • Minimum credit score of 720 (for loans below $750,000) or 740 (for loans above $750,000)
  • Must be within 10 years of residency or fellowship

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.

6. 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.

Should you use a North Carolina physician mortgage loan?

“Am I the right fit for a doctor mortgage?” If you are asking yourself this question, consider the following questions, too:

  1. Are you committed to your current job?
  2. Do you want to remain in your region of North Carolina?
  3. Are you okay with higher interest rates?

If you said no to any of these questions, take some time to determine whether a doctor mortgage is really the best fit for you. If the answer was ‘yes’ to all of the above, one of these loans may be just the financial leverage you need. 

Examples of doctors who take out physician loans in North Carolina

Doctors and professionals with situations similar to yours are taking out physician loans across North Carolina. The stories below are just some of the reasons why doctors are reaching out to lenders for physician loans. 

Doctor whose DTI ratio is skewed by debt

Having started a new position in pediatrics at UNC Hospitals just outside Durham, Roger assumed he would be a natural fit for a conventional loan. Little did he know that the student debt he was still carrying was throwing his debt-to-income ratio off, despite his great salary. Fortunately for Roger, a local lender is extending doctor mortgages to physicians like him. This lender understands why his student debt exists and that he will continue to be a high earner for years to come. 

Doctor who wants to maximize leverage

Terry is happy being a doctor, but he may have missed a second calling in life. He has always excelled at leveraging various financial instruments in order to get a great return on investments. Having seen that a regional lender is offering doctor mortgages at a great rate, he has jumped on the opportunity to finance a new home at zero down. 

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.

Find a Physician Loan Specialist

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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