6 Best Physician Mortgage Loans in Washington


Physician mortgage loans in Washington are available to medical doctors and particularly useful for those seeking 100% financing options.

Key Terms

  • Professionals with student loan payments get special consideration of this debt under physician home loans.
  • Physician mortgages don’t require private mortgage insurance, saving you thousands of dollars.
  • LDoctor mortgages are available for house purchases and refinancing up to $2.5 million in some circumstances depending on the physician mortgage lender.

The Evergreen State is the only state named after a president, although it’s now more famous for residents like Bill Gates, or popular sites such as the Seattle Space Needle and Mount St. Helens. With a temperate climate, the Pacific Northwest is becoming more and more popular among medical professionals looking to call the state home, including over 21,000 working physicians.

With the influx of residents, home prices are on the rise, especially in cities like Seattle. Across the state, the median sales price of a home is $452,400 according to Washington’s Office of Financial Management. If you want to live in a city, you can expect to pay more than that.

As a doctor, you may have graduated with high student loan debt and credit card balances and not a lot of savings. The good news is that Washington has plenty of physician mortgage loan programs available to healthcare providers throughout the state, making home buying easier. These programs have generous provisions when it comes to student loans and can offer you financing at 0% down for certain purchase prices.

If you want to learn more faqs about doctor mortgages in Washington, including the physician loan lenders that we found during our research, keep reading.

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Pros/Cons of Washington physician mortgage loans

Are there pros and cons associated with a Washington physician mortgage? Of course there are, and considering all of them is key when making such a financial decision. 

Pros of Washington Physician Mortgage Loans:

  • Special consideration for student loan repayments
  • Zero money down, in many cases
  • No PMI payments
  • High loan limits

Cons of Washington Physician Mortgage Loans:

  • High limits can lead to overspending or getting underwater with a loan
  • Higher interest rates, depending on the loan program
  • Additional, necessary commitments, including opening a savings/checking account with the lender

Carefully weigh all these factors, including additional closing costs, while considering home ownership. A mortgage of any kind is a long term commitment. 

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6 Top doctor mortgage lenders Washington

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

1. 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 the home buying process for doctor mortgages, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. 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 are 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 primary residences like 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.

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, DO, DPM), 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. 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.

5. 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 or refinance 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.

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.

Does a physician mortgage loan in Washington make sense for you?

This is an important question to ask yourself. It can certainly be a great idea if you are still dealing with your student debt from medical school or university. Physician loan lenders offer special consideration to student loan repayments, so you do not need to worry about strict underwriting requirements as you might with a conventional loan.

What is your opinion on potentially paying a higher interest rate? You get a lot in return with a physician loan, but this is also an important point to consider. You may find that you are paying more than you are comfortable with to receive this financing. 

Examples of doctors who take out physician loans in Washington

Doctors across Washington State are taking out doctor mortgages, enjoying the myriad benefits of working with these lenders. The examples we’ve listed below tell just a few of those stories. 

An ER doctor who wants an easy approval process

As an ER doctor at “U-Dub” Medical Center, Tamara doesn’t have a lot of bandwidth for a complex mortgage approval process. She has also heard about the many complications that can come up with the stricter underwriting requirements that come with conventional loans. 

She decided to reach out to doctor mortgage lenders in her area to see what they can do for her. She wants to take advantage of the special consideration for student debt, in particular, as well as the high loan limits so that she can widen her buying options in Seattle. 

A dentist who doesn’t have a down payment

With prices as high as they are in Spokane, Mike is a bit nervous about having enough money for a down payment on a new home. His dental practice is doing well, but 20 percent on a conventional loan is more than he can afford for the time being. 

While he could wait and buy later on down the road, he is eager to settle down now. A lender in the area is offering doctor loans at a very reasonable rate, so he has decided to take them up on their offer to finance a new 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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