6 Best Physician Mortgage Loans in Tennessee

While Tennessee is perhaps best known for being the ‘home’ of country music, it is also home to some of the nation’s fastest growing economies, making it an attractive place for many professionals. People from New York to California are moving inward to places like Tennessee for a chance to make it big. In fact, over 17,000 working physicians live in this charming and diverse southern state. 

The housing market in Tennessee, however, is quite competitive, even for high-earning professionals. This year the median sale prices rose over 23% over the same time as compared to last year. The median home sale price is currently $357,000 according to the Tennessee Realtors Association. In addition to rising home prices, the number of homes listed for sale is lower than it was last year, and that’s contributing to rapidly increasing home prices and a frustrating home buying process.

For those healthcare practitioners like doctors and dentists that want to move into this highly competitive market, the Tennessee physician mortgage loan program may be able to offer some help. It allows qualified professionals to buy at a minimum down payment or even no down payment in some areas.

Pros/Cons of Tennessee physician mortgage loans

Tennessee doctor loan programs are designed to answer the very particular needs of working professionals in medicine and beyond. For this reason, the list of pros associated with these loans may be music to the ears of many doctors. With a physician loan, you get:

• Special consideration of student debt, which creates problems for many professionals
• Higher loan limits that allow you to buy bigger and better homes
• No required Private Mortgage Insurance
• 100 percent financing, depending on the lender program

To get all that, however, you may need to pay a higher interest rate, something some might call a ‘con.’ Still, many Tennessee physicians are more than happy to pay a higher rate to enjoy the benefits of these specialized financial products. 

6 Best doctor home loan lenders in Tennessee

If you’re ready to learn more about the best physician mortgage lenders in Tennessee, 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 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.

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.

Wintrust Mortgage

Wintrust Mortgage is based in Denver, Colorado and is part of the Wintrust Financial Corporation. The company offers mortgage services throughout the United States and an in addition to standard mortgage products has a competitive doctor mortgage program.

We contacted a loan officer at Wintrust Mortgage to learn more about their physician loan program and the detailed requirements for eligibility. Here are the key points:

• Established Professional:
• 5% down up to $650,000 (PMI required)
• 10% down up to $1,000,000
• 15% down up to $2,000,000
• 20% down up to $2,500,000
• 25% down up to $3,000,000
• New Professional:
• 5% down up to $650,000 (PMI required)
• 10% down up to $600,000
• 15% down up to $1,000,000
• Eligible degrees: MD, DDS, DMD, DO, DPM and Veterinarians
• Minimum credit score is 700
• 5/1, 7/1, 10/1 Adjustable Rate Mortgages (ARM)
• Deferred medical student debt may not affect your qualifying loan amount
• Purchase and rate/term refinance for primary residence
• Non-Occupant Co-Borrowers Allowed

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 Tennessee doctor mortgage right for you?

Are you considering the possibility of taking on a Tennessee doctor home financing loan? Take a second to assess where you are in your life and career. If your career has stabilized and you are enjoying where you are located in Tennessee, committing to a physician loan should be easy. 

Are you willing to pay a higher interest rate than conventional loans, if needed? Some don’t like the idea of paying a higher rate on financing or refinancing. If you are fine with that, however, and see it as a good rate for what you get with a physician loan, then committing to one might be a great fit. 

Examples of physicians who take out doctor home loans in Tennessee

Doctors who are taking out Tennessee physician loans may be a lot like you. In fact, we’ve included some common scenarios below to illustrate just that. 

Doctor who only has an offer letter

Sandra couldn’t be more excited to be on the verge of starting as an attending at Nashville General Hospital. She has an offer letter in hand and is scheduled to start in months. She and her partner want to take the time in the interim to settle into their first home. 

Conventional lenders, however, are telling her that she needs to start her job and receive multiple paychecks before she can get approved for a loan. A doctor mortgage lender is willing to accept her offer letter as proof of employment, giving her a great alternative and allowing her to buy now while the timing is good. 

A resident with no down payment

Sam’s residency has been demanding, but it’s the fulfillment of all his dreams. Now that he and his wife are expecting, they want to buy a home near the hospital where they both work. It will be a while, however, before they can save up the 20 percent the local mortgage lender is asking they put down on a new home. 

Luckily, they’ve heard about doctor mortgages from colleagues and have found a lender willing to offer them 100 percent financing at a pretty reasonable rate, all things considered. 

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.