6 Best Physician Mortgage Loans in North Dakota


Physician mortgage loans in North Dakota are available to medical doctors looking for special benefits such as 0% financing.

Key Terms

  • A North Dakota physician mortgage loan comes with high loan limits and 100% financing, in some cases.
  • Student loan payments often receive favorable treatment with these financial products, making it easier for doctors and professionals with debt to qualify for a mortgage.
  • Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.

Located in the Upper Midwest of the United States, North Dakota has numerous nicknames, including “Peace Garden State,” Roughrider State,” and “Flickertail State.” It was the 39th state when it joined the US on November 12, 1889, and it is also an iconic part of what is referred to as the Great Plains region of the United States. It is also the home of over 1800 working doctors

With places like Fargo and Bismarck, as well as a range of shortage areas where doctors are really needed throughout North Dakota, taking a job here as a health professional might be the right next step in your career path. Some doctors move to ND from South Dakota or Minnesota because they got a great job offer, and there are many opportunities for health professionals who do so.

For many North Dakotans, including its doctors, owning a home in North Dakota may seem out of reach. Data from the North Dakota Association of Realtors shows the average sales price for single-family homes is $242,564. About 57% of the homes in North Dakota are single-family homes, with 27% of those homes being built after 2000.   

A North Dakota physician mortgage loan program may help to make buying a home here a bit easier. This program is available to qualified dentists and doctors who meet other requirements. If you qualify, you may be able to buy a home with a low down payment or without one at all. As. with any loan repayment program, carefully evaluate doctor loan eligibility and requirements when deciding if this will be part of your home buying process.

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Reasons to consider a North Dakota doctor mortgage loans

A North Dakota physician mortgage loan offers a range of advantages, including:

  • High loan limits that allow you to buy a bigger or more expensive home
  • No required Private Mortgage Insurance
  • Little to no money needed for a down payment
  • Special consideration of payments made on student debt

What are the cons involved, if any? There are a few, including the fact that your lender may very well require that you also open an account with them. You also may find that you have a higher interest rate with some of these loans. Look at the NMLS to see what kinds of homes are for sale in your area to see if you can afford them. Figure if that future mortgage payment works in your budget, too, as you investigate qualifying for one of these loans.

Do your research as a healthcare professional taking out this loan. You need to know interest rates, potential closing costs, eligibility to refinance, any down payment requirements, and loan amount caps. This can help you narrow down your list of lenders as a provider.

Finding a new home for new health professionals like nurse practitioners, practicing physicians, or physician assistants is an exciting process, but it can also be overwhelming to determine which loans you qualify for. Check out the requirements to get a doctor loan, as well as if lenders are member FDIC or equal housing lenders. When looking into these loan repayment programs, not all banks are created equal when it comes to qualifying for these loans, so read all disclaimers first.

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6 Top North Dakota physician home loan lenders

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

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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 North Dakota physician mortgage loan right for you?

How can you decide if a North Dakota physician mortgage loan is right for you? Take a look at your career, first and foremost. If you are in a position that you love and in which you intend to stay, committing to a mortgage will likely work for you. If you think you will want to make a transition some time soon, it may be better to wait. 

You may want to take a look at the interest rate you get, as well. If it is a higher rate, that may work for you, if you believe it’s a good price to pay for everything else that you get with one of these mortgages. If you don’t want to pay that price, waiting to qualify for a conventional mortgage may work best. 

Examples of doctors who take out physician loans in North Dakota

The people taking out physician loans in North Dakota are professional just like you and with stories that may be similar to yours, as well. They range from young doctors to seasoned hands looking to maximize their leverage. 

A young resident with too much debt

Tamara is just about to start her residency at Jamestown Regional Medical Center. She’s confident that she will do well at Jamestown and she wants to remain in the area. Taking out a mortgage has been difficult, however, due to her pretty sizable student debt. Thankfully, a fellow resident told her about a local lender offering doctor mortgages. This lender gives special consideration to Tamara’s student loan payments, allowing her to qualify easily for the loan and buy a home. 

A doctor who wants to hold onto investments

As an attending at Tioga Medical Center, Marcus is doing well financially. His wife’s favorite home in their neighborhood is currently on the market, however, and though he wants to get it, he doesn’t necessarily want to sell any investments to free up the cash for a down payment. Taking out a doctor mortgage allows him to maximize his leverage and get the home without liquidating any of his holdings. 

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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