Physicians

The Doctor Loan Program is a residential mortgage loan with special underwriting developed specifically for medical physicians and dentists, optometrists, podiatrists, and veterinarians.

Medical
Students

What should a medical student know now if hoping to buy a home during residency?

Find out more

Residents /
Fellows

What should a resident or fellow keep in mind when preparing to buy a home?

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Attendings /
Faculty

What should a practicing doctor keep in mind when preparing to buy a home?

Find out more

Why Choose the Doctor Loan?

Most doctors are looking for loans with low interest rates that enable them to put very little money down, not use their student loan debt in their debt ratio, use future income rather than current or past income, and enable them to move in before they start their job. This scenario poses many challenges for most lenders because most physicians would not qualify for the best rates given the type of loan they need. Banks try to do these loans with higher rates and less attractive terms.

Physicians with high credit scores have a very low risk of default on residential mortgages even if they have high debt, higher ratios and few assets. Hence, the doctor loan program was started to give physicians access to mortgages with great interest rates, no or very little money down required, and no mortgage insurance usually.

Loan Programs

There are six different loan programs in the area, and all of them have different requirements. Below is a highlight of all of the mortgage products offered, but since changes occur frequently, please contact us for a contact to the banks directly.

Suntrust Bank

  • Offers mortgage loans to physicians, including MDs, DOs and Oral Surgeons.
  • There is a requirement that doctors have completed their residency or fellowship within the last 10 years.
  • Mortgages are available for purchases and refinances.
  • They offer fixed rate, ARMS and interest only options.
  • Loan terms are 3,5,7, and 10 year ARMS.
  • No private mortgage insurance (PMI)
  • 100% financing is available.
  • For residents, interns and fellows, the maximum loan amount is $650,000.  For older physicians who want 100% financing, the maximum loan amount is $650,000.  For older physicians who want 95% financing, the maximum loan amount is $1,000,000.  For older physicians who want 89.9% financing, the maximum loan amount is $1,500,000.
  • Student loans are not included in the debt to income ratio.
  • If a spouse is working, their income can be included to increase the maximum loan amount for which the couple can qualify.
  • Seller can pay closing costs up to 3%, or it can come as a gift as well.
  • This loan is for primary residences only.  Condos can only be financed up to 95%.  One cannot buy more than one unit, no mobile homes, no rural homes, and no construction loans.
  • Minimum credit score is 720, but they make exceptions down to 660.
  • Eligible states for this loan are Alabama, Arkansas, Delaware, Florida, Georgia, Maryland, Mississippi, *New Jersey, North Carolina, *Pennsylvania, South Carolina, Tennessee, Virginia, District of Columbia, and West Virginia
  • *New Jersey Counties that qualify:  Bergen, Cape May, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex and Union
  • *Pennsylvania counties that qualify:  York, Dauphin, Cumberland, Perry and Pike Counties

First Citizens

  • Offers mortgage loans to medical professionals residing in MD, VA, NC, SC, TN, GA, FL.
  • There is NO requirement that doctors have completed their residency or fellowship within the last 10 years.
  • Eligible participants include dentists, senior hospital administrators, and medical interns, residents, fellows, licensed physicians in the following designations: Medical Doctors (MD), Dr. of Dental Surgery (DDS), Dr. of Optometry (OD), Dr. of Podiatric Medicine (DP), Dr. of Psychiatric Medicine (DPM), Dr. of Osteopathy (DO), Dr. of Dental Medicine (DMD), Dr. of Ophthalmology (MD), Dr. of Surgery (DCh)
  • Mortgages are available for purchases and refinances. They also do loans for second homes and construction loans up to 90% with no private mortgage insurance (PMI).
  • They offer fixed rate, 5/1, 7/1 and 10/1 ARMS on a 30 year amortization and 10, 15, 20, 25 and 30 year fixed mortgages.
  • No private mortgage insurance (PMI)
  • 100% financing is available.
  • Spouse’s income can be used to qualify.
  • There is no limit to how much the seller can contribute towards buyer's closing costs.
  • Condos are considered on a case-by-case basis.
  • Can have up to 4 financed properties to qualify.
  • If borrower is a new resident, a copy of the employment contract is required.
  • Do allow an LLC to hypothecate the mortgage; however, the individual must sign the note.

South State

  • Offers mortgage loans to medical physicians, dentists and veterinarians.
  • There is NO requirement that doctors have completed their residency or fellowship within the last 10 years.
  • Mortgages are available for purchases and refinances.
  • They offer 5/1 and 7/1 ARMS.
  • Loan terms are for 30 years.
  • No private mortgage insurance (PMI)
  • 100% financing is available.
  • Maximum loan amount is $700,000 for 100% financing. Maximum loan amount is $1,000,000 for 95% financing. Exceptions are made for some scenarios.
  • Student loans are not included in the debt to income ratio.
  • If a spouse is working, their income can be included to increase the maximum loan amount for which the couple can qualify.
  • Seller can pay closing costs up to 3%, or it can come as a gift as well.
  • This loan is for primary residences only, single-family residences and attached and detached condos. One cannot buy more than one unit, no mobile homes, no rural homes, and no construction loans.
  • Minimum credit score is 700 for loan amounts less than $417,000. Minimum credit score is 720 for loan amounts greater than $417,000. Exceptions are made for some scenarios.
  • Eligible states for this loan are South Carolina, North Carolina and Georgia.

Regions

  • Regions offers mortgage loans to MDs, Doctor of Dental Medicine (DMD/DDS) or Doctor of Osteopathy (DO) with less than seven years in practice.
  • There is NO requirement that doctors have completed their residency or fellowship within the last 10 years. Doctors who have been self-employed for a minimum of 3 years are eligible. For self-employed physicians, income will be averaged based upon the most recent two years business and personal tax returns.
  • Mortgages are available for purchases only.
  • Regions offer fixed rate and ARMS. Available ARMS are 5/1, 7/1 and 10/1 years. Loan terms are 30 years for ARMS.
  • Loan terms are 15 and 30 year for fixed rate mortgages.
  • Regions offers a 30-year fixed biweekly loan product – the rate is 0.125% lower than for the monthly payment programs.
  • No private mortgage insurance (PMI)
  • 100% financing is available.
  • For loan amounts less than $650,000, 100% financing is available. For loan amounts up to $750,000, 95% financing is available.
  • Student loans are not included in the debt to income ratio with sufficient documentation supporting that the student loans are currently in deferment/forbearance.
  • If a spouse is working, their income can be included to increase the maximum loan amount for which the couple can qualify.
  • Seller can pay closing costs up to 3%. If a gift is involved, the buyers must contribute a minimum of $1,000 towards the transaction.
  • This loan is for primary residences only, single-family residences, and attached and detached condos. One cannot buy more than one unit, no mobile homes, no rural homes unless one has a substantial down payment, and no construction loans.
  • Loan amounts less than $417k only require a 700 credit score. All other programs require 720.
  • Residents entering the medical profession are required to have a copy of the executed written agreement as evidence of employment or future employment.
  • Eligible states for this loan are Alabama, Arkansas, Florida, Georgia, Iowa, Illinois, Indiana, Kentucky, Louisiana, Missouri, Mississippi, North Carolina, South Carolina, Tennessee, Tennessee, Texas and Virginia.

Bank of America

  • Offers mortgage loans to MDs, Doctor of Dental Science (DDS), Doctor of Dental Medicine (DMD), Doctor of Optometry (OD), Doctor of Ophthalmology (MD), Doctor of Podiatric Medicine (DPM), and Doctor of Osteopathy (DO).
  • Mortgages are available for purchases only.
  • They offer fixed rate mortgages and ARMS.
  • All loan terms are available.
  • No private mortgage insurance (PMI)
  • 95% financing is available.
  • Loan amounts less or equal to $625,500 require a 41% debt to income ratio. Loans greater than $625,500 require a 38% debt to income ratio. The maximum loan amount is $2,000,000.
  • Student loans are not included in the debt to income ratio if deferred for 12 months after closing on a home.
  • If a spouse is working, their income can be included to increase the maximum loan amount for which the couple can qualify.
  • Seller can pay closing costs up to 3%, or it can come as a gift as well.
  • This loan is for primary residences only, single-family residences, attached and detached condos.
  • Minimum credit score is 720.
  • All 50 states are eligible.

BB&T

  • Offers mortgage loans to medical physicians licensed in SC or GA
  • There is NO requirement that doctors have completed their residency or fellowship within the last 10 years.
  • This loan is for primary residences only.
  • Condos are considered on a case-by-case basis.
  • If borrower is a new resident, a copy of the employment contract is required.
  • Do allow an LLC to hypothecate the mortgage; however, the individual must sign the note.

FAQs

1.Rent or Buy?
People are delaying the decision to buy a home because they are not sure where prices are headed. If they buy and prices continue to soften, they feel that they will not have purchased at the optimal moment. They reason that, if they sit and wait, they can’t be hurt. This thinking assumes that a non-decision comes without consequence.

If a family continues to rent, they are looking at a housing expense which will rise with the market. Rental costs increase by 3% a year historically.

The price of anything is determined by supply and demand. As demand increases, the price of an item will increase unless there is an equal increase in supply.

At 95% capacity in our rental market right now, it is hard to find a place to rent, and who wants to move every year? Right now, it is considerably less expensive to own a home than rent in every part of the tri-county area except downtown Charleston.
2.Where are rental prices headed?
Based on the concept of supply and demand, we believe rental prices will continue to substantially increase over the next few years. The long-run 30-year average increase in multifamily rental households is 200,000 each year. Over the next few years, those numbers will more than double to over 500,000 each year.
3.Where are prices projected to go?
As of July 2016, the Case Shiller Home Price Index revealed that home prices are climbing at a 5% annual rate and are a mere 3% from their all-time peak. This is occurring across the nation as increases were reported in 19 of 20 metros. The Home Price Expectation Survey, which polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts, calls for continued appreciation over the next five years.
4.Where are mortgage rates today compare to yesterday?
According to Kiplinger, expect the average 30-year fixed rate mortgage to stay at a low 3.5% through the next year. The Capital Economics Property Economist has rates inching up to 3.85% by the end of 2016 and to 5.0% by the middle of 2018.