5 Best Physician Mortgage Loans in Oregon


Physician mortgage loans in Oregon are worth considering if you’re a medical doctor and looking for 0% down payment options in the state.

Key Terms

  • Some healthcare mortgage programs allow you to qualify based on a signed contract or offer letter, even before you’ve started working.
  • Student loan payments typically receive favorable treatment with a doctor loan, making it easier to qualify for a mortgage.
  • Physician home loans don’t require private mortgage insurance (PMI) even with a 0% down payment.

A signature part of the Pacific Northwest region of the United States, Oregon borders the Pacific Ocean as well as California, Nevada, Idaho, and Washington and boasts an array of natural wonders. Just some of the stunning places residents of Oregon can enjoy include Hell’s Canyon, Crater Lake National Park, Mount Hood and Mount Bachelor. 

A look at the Oregon housing market for 2021 can seem daunting. The Oregon Realtors Association data shows the average sales price for single-family homes in Portland at $550,000. That works to an average $338 per square foot in cost.   

To make home buying a bit easier for the over 12,000 working doctors and other providers in the state, the Oregon physician mortgage loan program may be helpful. It may allow you to buy or refinance a house without a down payment or with a low down payment. For qualified professionals, that is good news.

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The good and the bad of Oregon physician mortgage loans

Oregon physician mortgage loans come with great features and some downsides, as with anything in life. Doctors, dentists and other professionals may find that the pros associated with these loans are ideal for their needs:

  • High loan limits
  • Little to no money down
  • Special consideration of student loan repayments
  • Approval off of a signed contract or offer letter, in some cases
  • No PMI

That list is pretty impressive, but consider, too, that you may get all of that at a higher interest rate than you might get with a conventional loan. Also, a physician mortgage lender may also want you to commit to a secondary account with their bank in the form of either a savings or checking account. 

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5 Best doctor home loan lenders in Oregon

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

1. 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 loan options 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 new 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.

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 mortgage 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 leverage during the homebuying process 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 guarantee 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. 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. 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, DPM, 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.

5. 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.

Is an Oregon physician mortgage loan right for you?

When you consider taking on a mortgage, you need to factor in certain issues related to lifestyle and employment. A mortgage is a big financial commitment that will last for years. Before taking on any mortgage, ask yourself:

  • Am I satisfied with my current employment? 
  • Do I foresee myself staying in this region for the foreseeable future?

Also ask yourself if you are alright with paying a higher interest rate, potentially. While some view this as a downside of doctor mortgages, many see it as an asset, given that it comes with so many benefits, including the option of 100% financing on a home. 

Examples of physician who take out doctor mortgages in Oregon

Whether you are a pediatrician in Portland or a rural GP, a physician loan can be a great fit for you. The following narratives delineate just some of the reasons why doctors across Oregon are taking out physician mortgages. 

Doctor who wants to hold onto savings

Amy was raised to be careful with money. Even when she was finishing up at the School of Medicine at OHSU, she was still able to continue saving. Now that she is an attending and ready to buy a home, she is hesitant to wipe out her hard earned savings by making a big down payment on a conventional mortgage. Instead, she’s decided to go with an offer of 100% financing from a local lender extending doctor mortgages to professionals like her. 

Doctor whose DTI ratio is affecting approval

Thomas knew that becoming a doctor would mean taking on student debt, but he didn’t realize that it would prevent him from homeownership. The volume of his debt has left him with a DTI ratio that is preventing him from receiving approval on a conventional mortgage. A doctor mortgage, on the other hand, gives special consideration to his student debt repayments. He’s been approved for a physician mortgage loan with a high limit and little money down, allowing him to purchase his first home. 

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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