5 Best Physician Mortgage Loans in Vermont

Noted for its dense forests and beautiful parks, Vermont is a highly desirable, often affluent state in New England. It’s noted as being the home of over 100 19th-century homes, beautiful covered wooden bridges, and offers quality artisan wares including things like organic products and maple syrup. In addition to this, many come in the winter to ski the slopes of the mountains. The college town of Burlington, home of the University of Vermont, is a popular destination. As a desirable place to live, it can be a challenge for some to buy into this market, even for the over 2400 doctors living and working in the state.

Prices are also rising in Vermont as they are in other states. The Vermont Association of Realtors reports that median sale price was $383,050, which is a 28% increase over the previous year. 

Considering this, providers like doctors and dentists planning to buy in Vermont may wish to seek out the physician’s mortgage loan program in the state when they buy or refinance a home. For qualified health care professionals, this may reduce down payment requirements, sometimes eliminating them.  

Vermont physician mortgage loans: pros and cons

Any financial product comes with upsides and downsides. For doctors, the rub is that a physician loan comes with upsides that answer directly to their needs. Student debt, for example, is given very favorable consideration during the underwriting process of these loans. A doctor mortgage also offers higher limits than conventional mortgages, does not require PMI, and can come with zero money down. 

Finally, many doctors enjoy the fact that you can get approved for a physician loan off of an offer letter alone, allowing them to sidestep the unrealistic underwriting requirements of conventional loans. 

The downside? All of that can mean that you will need to pay a higher interest rate. The good news is that there are sometimes doctor mortgages out there that offer pretty competitive rates. Regardless, many professionals feel that a higher rate is worth everything else that comes with a physician loan. The other downside is that some loans aren’t available to all medical professionals, like physician assistants and nurse practitioners.

5 Top Vermont  physician home loan lenders

If you’re in the market for a home in Vermont, consider these physician mortgage loans that are available to state residents.

1. 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.

2. 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/second homes 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 borrowers’ 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.

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, 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 and primary care 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, meaning lower monthly payments
• 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 a Vermont physician mortgage loan right for you?

That’s a reasonable question to ask. It certainly is if you are at a point in your medical career where you are still dealing with student debt. A Vermont physician loan can also be advantageous for doctors who want to enjoy higher loan limits in an expensive housing market.

When are these loans not a great fit? Some doctors may want to wait and try to find a lower rate via a conventional loan. Still others might not want to establish a long-term relationship with a lending bank. A mortgage of any type is also not the best bet if you plan on relocating or finding a new job anytime soon. 

Examples of doctors who take out physician loans in Vermont 

Who are the doctors in Vermont that take out physician loans? They include residents, established attendings and a range of other professionals whose stories may very well align with your own. 

Doctor who only has a small down payment

Living in Vermont means having access to beautiful country and a vibrant outdoor life.. That’s why Devon decided to take on a new position at Southwestern in Bennington. With prices as crazy as they are, however, Devon is looking at a down payment upwards of 100k or more. He has some money saved up, but not enough to qualify for a conventional mortgage. He decided to turn to a physician loan instead that is offering 100 percent financing. The higher loan amount will also increase his options as he looks around for a new house. 

An OB-GYN who found a great rate

Sherilyn has been working as an OB-GYN in Montpelier for nearly 15 years. She has always been careful with money, and she doesn’t like to pay a lot for financing in the form of a high interest rate. Fortunately, a local lender is offering doctor mortgages at a great rate, meaning she can enjoy the other benefits of a physician loan without paying too high a price for her taste. 

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.

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.