Best Physician Mortgage Loans

TD Bank Offers the Best Overall Physician Mortgage Loans

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Physician mortgage loans, or doctor loans, are mortgage loans specifically geared to medical professionals. They help doctors, dentists, and veterinarians overcome obstacles they often face when securing financing. Many healthcare professionals have substantial student loan balances and their past work history may not reflect their earning potential if they just recently completed their residency. Physician loan lenders understand the unique situation doctors are in, as well as the fact most see rapidly rising salaries.

The best physician mortgage loans offer competitive interest rates, low down payments, and will look at your entire financial profile. They will also consider your future earning potential and may accept a contract for future employment in lieu of proof of income documents.

Best Physician Mortgage Loans of 2021

Best Overall : TD Bank


TD Bank

TD Bank

  • Starting interest rate: Contact for rates 
  • Minimum credit score: Not disclosed 
  • Loan terms (range): 30 years
Why We Chose It

TD Bank is a reputable lender that offers physician loans to self-employed borrowers and a wide variety of medical professionals. 

Pros & Cons
Pros
  • Borrow up to $750,000 with no down payment or up to $1.25 million with 5% down

  • Borrow for not just single family residences, but also condominiums and co-ops

  • Self-employed borrowers are eligible with a minimum of two years of work history

Cons
  • You can qualify only if you are less than 10 years out of residency

  • No online application is available

  • Loans are not available in all states

Overview

As one of the top 10 financial services companies and a history dating back to 1852, TD Bank provides a wide variety of banking products and financial services, including physician mortgage loans.

TD Bank is our best overall provider of physician mortgage loans because it's available to a wide variety of medical professionals, doesn't require traditional proof of income, makes larger loans than most other physician mortgage loan lenders, and is open to self-employed borrowers. 

TD Bank refers to its loan as a Medical Professional Mortgage and it's available to licensed medical or dental residents, fellows who have completed a minimum of two years of their residency, as well as to dentists, oral surgeons, and practicing physicians including MDs, DOs, and DPMs. Only self-employed borrowers are required to provide two years of work history to get approved; other borrowers will appreciate the lack of documentation required. 

While this loan doesn't require a down payment, you will need to pay closing costs such as title insurance at the end of escrow. Like many lenders you must be borrowing for a primary residence.

Unfortunately, TD Bank operates in just 15 states and Washington, D.C.

Best for Ease of Approval : First National Bank


First National Bank

 First National Bank

  • Starting interest rate: Contact for rates
  • Minimum credit score: Not disclosed
  • Loan terms (range): 30 years
Why We Chose It

First National Bank wins for easy approval because the lender focuses on making approval as simple and fast as possible. You can use the loan for a secondary residence as well. 

Pros & Cons
Pros
  • Streamlined loan application process and dedicated point of contact allows for timely loan approval

  • Up to 100% financing is available with no PMI

  • Borrow for a primary residence, a vacation home, a or second home

Cons
  • No online application

  • Not available in all states

Overview

First National Bank wins for easy approval because the lender focuses on making approval as simple and fast as possible. First National allows you to begin the application process by simply adding the loan to your "cart" online and inputting your personal information. You'll then be paired with a private banker who will be your point of contact throughout the application process and help you work toward loan approval. 

First National is based in Pittsburg, Pennsylvania, and has been offering financial services since its founding in 1864. It offers a full array of services, including asset management, private banking, small business banking, and mortgage loans, including physician mortgage loans available in 14 states

Its loans are available not just for primary residences, as many physician loans are, but also for vacation or second homes as well as new construction. You'll have a choice of a fixed or adjustable rate loan and can borrow up to 100% of the value of your home with no private mortgage insurance.

Best for Good Credit : Flagstar Bank


Flagstar Bank

 Flagstar Bank

  • Starting interest rate: Contact for rates
  • Minimum credit score: 700
  • Loan terms (range): 30 years
Why We Chose It

It’s only available to those with a high Fico score but if you qualify, it offers high loan limits and is available in all 50 states. 

Pros & Cons
Pros
  • Borrow up to $1.5 million with flexible down payment options

  • Loans are available in all 50 states

  • Close up to 60 days prior to the start of employment with a signed contract

Cons
  • All loans are adjustable rate mortgages; there are no fixed rate options

  • High minimum credit score requirements

Overview

Flagstar Bank is our top choice for those with good credit because its Professional Loan offers ample perks, though it is open only to those with credit scores of 700 or higher. First National has a larger loan limit than most other lenders, provides loans in all 50 states, and facilitates a fast closing, but you can't qualify unless your credit score is good to excellent. 

The lender started in 1987 and is a top five mortgage originator. The bank has 150 branches across five states but provides mortgage loans nationwide through a wholesale network of more than 2,350 third-party loan originators. 

Flagstar refers to its physician loan as a Professional Loan. It's open to residents, medical doctors, dentists, doctors of optometry or ophthalmology, podiatrists, DOs, veterinarians, nurse practitioners and nurse anesthetists, and clinical nurse specialists. Eligible professionals can borrow up to $850,000 with a 10% down payment and no private mortgage insurance. Loans can be up to $1.5 million. This $1.5 million limit is higher than most other physician loan providers. 

While Flagstar doesn't offer fixed rate loans, the high borrowing limit makes it an attractive option for providers who plan to refinance as their career advances and before their rate begins adjusting.

Best for Low Down Payment : Lake Michigan Credit Union


Lake Michigan Credit Union

 Lake Michigan Credit Union

  • Starting interest rate: Contact for rates
  • Minimum credit score: Not disclosed
  • Loan terms (range): 30 years
Why We Chose It

This lender offers loans with zero down payments and loans with low down payments. It also has a high maximum loan amount. 

Pros & Cons
Pros
  • No cash reserves needed

  • Online application

  • Student loans won’t affect debt-to-income ratio

Cons
  • Must be a credit union member

  • Only available in Michigan and Florida

  • Need to contact for rates

Overview

Founded in 1933, Lake Michigan Credit Union (LMCU) is the best choice if you want to borrow a lot of money with a low down payment, as this lender enables you to take a loans with 0% either 5% down and no private mortgage insurance. You can borrow up to $650,000 with 0% down and $1 million with 5% down. LMCU also allows loans up to $2 million with a bit larger down payment. This is a higher limit than many other lenders.

Its physician mortgage is called a Doctor Mortgage and is open only to credit union members. Medical, dental, and orthopedic professionals are all eligible to apply, and there is even an online application you can submit to get the process underway without having to visit a mortgage professional in person.

The Doctor Mortgage is especially affordable to obtain because there is no requirement you have a certain amount of cash reserves at closing. Those concerned about a down payment due to a lack of cash flow will especially appreciate this option. You'll also have a choice of fixed or adjustable rate mortgage loans and can borrow for a new home purchase, a refinance, or home construction.

Best for High Borrowing Limit : KeyBank


KeyBank

 KeyBank

  • Starting interest rate: Contact for rates 
  • Minimum credit score: Not disclosed 
  • Loan terms (range): 30 years
Why We Chose It

Key Bank offers loan limits with high maximum loan amounts which is ideal to purchase a home in an expensive area or to buy a luxury property. 

Pros & Cons
Pros
  • High borrowing limits, up to $3.5 million

  • Fixed or variable rate loan options

  • Loans available for primary or secondary homes

Cons
  • Loans are not available in all states

  • Contact for rates

  • Can’t apply online

Overview

KeyBank was founded in Albany, New York, and currently operates in 15 states, managing more than $170 billion in assets. The bank offers a wide array of financial services including bank accounts, savings accounts, credit cards, investing and insurance, and mortgage loans.

KeyBank's physician mortgage is called a Medical Professional Loan and it's available to purchase an owner-occupied residence. You'll need to meet with a local mortgage loan officer to apply and can choose between a fixed or variable rate loan.

This lender stands out because of its maximum loan limit of $3.5 million, which is well above what many mortgage lenders offer for physician loans. It is possible to have up to 100% LTV (no down payment) as well with some loan sizes. As is the norm, higher loans sizes will require larger down payment percentages. If you're looking for a large loan Key Bank could be a great choice.

Final Verdict

All of the financial institutions that offer the best physician mortgage loans have different things to offer. Some offer low interest rates and others offer high maximum loan amounts. Overall, we recommend checking out TD Bank. This bank has a long history in the banking and mortgage industries and offers loans for multiple types of properties with low and no down payment programs. 

Compare The Best Bank Loans

Company Starting Interest Rate  Minimum Credit Score  Loan Terms (range)  Maximum Loan Amount 
TD Bank
Best Overall
Contact for rates Not disclosed 30 years $1.25 million
First National Bank
Best for Ease of Approval 
Contact for rates  Not disclosed  30 years  Contact for details 
Flagstar Bank
Best for Good Credit 
Contact for rates  700 30 years  $1.5 million 
Lake Michigan Credit Union
Best for Low Down Payment 
Contact for rates  Not disclosed  30 years  $2 million 
KeyBank
Best for High Borrowing Limit 
Contact for rates  Not disclosed  30 years  $3.5 million 

Guide to Choosing the Best Physician Mortgage Loan

Are You a Physician in Need of a Mortgage Loan?

As physicians, you should assess your needs to determine if you’re currently in need of a mortgage loan. Consider things like if you’re ready to stay in one place and purchase a home, if you can afford to buy a house, and if you will meet the borrower qualifications. Physicians can qualify for mortgage loans that require a low down payment, won’t factor in student loan debt, and will accept a promise of employment (in lieu of proof of earnings). 

Compare Mortgage Loan Lenders

A house is often the biggest purchase you will make so choose your lender wisely. Keep the following in mind when comparing mortgage loan lenders:

  • Loan amount:Know if there are minimum and maximum loan amounts. Does the property you want to purchase fit within those parameters?
  • Interest rates: Compare interest rates and make sure to note if they’re fixed or variable and how long the term is so you’re making a fair comparison. 
  • Down payment: Know how much you need to put down to qualify for a loan. Some lenders offer no down payment loans and others require 5% or more. 
  • Minimum credit score: Know what the borrower qualifications are before applying so you don’t waste your time. Also, check your Fico score to make sure it meets the minimum credit score requirements. 

Apply for a Mortgage Loan

After you’ve carefully made your mortgage lender selection, it’s time to apply for the loan. This can either be done online or over the phone and the lender will need your social security number, identification, and may require an offer letter or proof of income. Getting your documents and application turned in promptly will help keep the process moving ahead. After you’re approved, you will receive repayment information including when your first payment is due and how to pay it. Usually, you can pay it online, send a check in the mail, or set up auto-pay from your bank account.

Frequently Asked Questions

What Is a Physician Mortgage Loan?

A physician mortgage loan is available only to qualifying medical professionals such as doctors, dentists, and veterinarians. Most physician loans:

Who Should Get a Physician Mortgage Loan?

Qualifying medical professionals such as doctors, dentists, or veterinarians should consider a physician mortgage loan if:

  • You can't qualify for a traditional loan due to a high student loan balance
  • You have a low down payment or no down payment and want to avoid PMI
  • You don't have traditional proof of income but have a contract for employment

Some physician mortgage lenders limit loans only to doctors who have completed their residency within a recent time period (such as 10 years or less). 

Medical professionals with proof of income and the credentials to qualify for a traditional mortgage may be better off opting for a conventional loan instead to get a broader choice of lenders and potentially qualify for a loan at a lower interest rate. 

What Does a Physician Mortgage Loan Cost?

The cost of a physician mortgage loan varies by lender. You'll generally owe customary mortgage closing costs, such as an appraisal fee and title insurance costs. Some lenders also charge application fees and/or loan origination fees. Shop around and compare total loan costs to try to get the best overall price.

Physician mortgage loans generally have a slightly higher interest rate than conventional loans. However, if you are able to avoid having to pay PMI by securing a physician loan, this could offset this added cost. 

Methodology

Before choosing the best physician mortgage loans, we researched and reviewed more than 30 loan providers. We chose reputable lenders with mortgage experience. We also considered how easy the application process was, the borrower qualifications, maximum loan amounts, and interest rates offered.