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.
Fulton Bank
Fulton Bank is a subsidiary of Fulton Bank, a financial institution that traces its roots back to 1882. The bank and mortgage company offer a full suite of financial products, including an attractive physician loan program.
We contacted Fulton Bank to get more details about the doctor mortgage specifically and we think you’re going to like a lot of the terms. Here are the important details:
- 0% down up to $1,000,000
- 5% down up to $1,500,000
- 10% down up to $2,000,000
- 30 and 15 year fixed rate options as well as adjustable rate options (5/1, 7/1, 10/1, and 15/1)
- No mortgage insurance
- Up to 6% seller paid closing costs and prepaids are allowed
- Gift funds from immediately family members allowed
- Student loans deferred for 12 months or longer are not included in the credit approval process
- You can close on a house up to 90 days prior to start of new employment with an employment contract
- Physicians, Pharmacists, Dentists and Veterinarians are eligible for the program
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.
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.
Is a District of Columbia physician mortgage loan right for you?
So, is a D.C. physician mortgage right for you? Determining this means asking yourself some questions about your life, career, and financial goals.
If you don’t have a first home to refinance, coming up with a down payment can be really challenging for medical residents. If buying a bigger or more expensive home, getting a traditional home loan might not be an option. Going that traditional route like working with an equal housing lender or trying to qualify for a VA loan, where applicable, might not give you enough buying power or benefits to come through the home buying process.
For healthcare professionals who want to own real estate in D.C., one of the best options is to consider a doctor mortgage. Like a traditional loan, monthly payments are due throughout the life of the mortgage, which means it’s important to confirm you can cover repayment with your future earnings. Physician home loans enable residents and upcoming medical professionals to become a homeowner with some upfront benefits while still being able to make mortgage payments over the life of the loan.
But before you commit, are you in a job that you enjoy and to which you want to stay? If you are in the very early days of a job, no matter how lucrative, it may not be the right time to buy. If you have been in your job for at least a few years and feel established in your role, the time may be right.
Next, take a look at your overall financial picture. Are you okay with paying a possibly higher interest rate? This can add up over the life of your loan, but may be worth it. If you believe that you can save for a down payment on a conventional loan in a few years, you may want to wait.
Finally, know that the bank or lender may very well want to have a relationship with you for years to come. This can mean making a commitment to a bank account, be it a checking or savings account; to many, this is a small “price” to pay for the convenience of a doctor mortgage.
Examples of doctors who take out physician loans in Washington D.C.
Let’s take a look at some of the physicians in the District of Columbia who are taking out physician loans. Reading through these descriptions may help you understand more about the process and help you decide whether or not you want to take out a doctor mortgage.
Doctor who is looking to maximize leverage
Sabrina’s Northwest dermatology practice is doing quite well. She’s popular with the Bethesda/Chevy Chase set and respected by her peers. Ten years in, she’s managed to make some investments, and her portfolio is doing well. Overall, her financial picture is healthy, but she doesn’t have that much cash or that many liquid assets.
A house is available in her neighborhood and she wants to make an offer. What should she do about the down payment on a conventional loan? With little cash on hand, she would have to liquidate some of her holdings. Fortunately, she knows that a lender in the area is extending doctor mortgages to professionals just like her; this no money down option will let her purchase the home without losing any of her leverage.
A physician who gets the best rate with a physician mortgage
Kwame is a partner in a family practice in Adams Morgan. He and his growing family are looking for a new home, and he’s been comparison shopping various mortgages. He could qualify for a conventional loan, but some investigation has revealed that a doctor mortgage offered by a local bank will actually get him a better rate. This will mean thousands in savings over the life of his mortgage, translating into money in the bank for his family.
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.