Physician Loans

Home Mortgage Loans for Physicians and Medical Professionals

A physician loan is a mortgage solution designed to accommodate the unique financial needs of doctors, dentists, veterinarians and medical residents. Whether you have large amounts of deferred student loan debt, need to move into a home before starting your first job, or have been practicing medicine for many years, our physician loan program can help. We can provide flexible financing to doctors, dentists and veterinarians at any career stage.

Apply for a Physicians Mortgage

Physicians Mortgage Program

Benefits

  • 100% financing up to $1 million1
  • 89% financing up to $2 million
  • No mortgage insurance requirements
  • Purchase and rate-and-term refinance options available
  • Primary residence and condos allowed; non-warrantable condos considered
  • Loan amounts available up to $500,000 for Medical Residents with proof of fully executed employment contract
  • Gift funds allowed towards down payment, closing costs and reserves

Eligibility

  • Available to medical doctors who have a minimum of a Medical Doctor (MD), Doctor of Osteopathy (DO), Doctor of Dental Surgery (DDS), Doctor of Dental Medicine (DMD), Doctor of Pharmacy (PharmD), or Doctor of Veterinarian Medicine (DVM) degree and an employment contract or verification of terms of employment acceptance. Medical Doctors with the degrees listed above but specializing in a particular field including but not limited to Dentists, Podiatrists and Ophthalmologists are also permitted.
  • Student loan debt must be in deferment or forbearance for at least 12 months after loan closing to avoid being counted in your debt-to-income calculations.
  • 100% financing to Residents on loan amounts up to $500,000. Borrower must have a minimum credit score of 680 to be eligible. 100% financing down does not exclude closing costs and/or prepaids that may be required.

Meet with an experienced mortgage professional to evaluate your current situation and better determine which mortgage options might be right for you.

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Frequently Asked Questions for Physician and Medical Professional Loans

If I am completing my residency, can I qualify for a Physician Loan?
  • Yes, medical residents with proof of a fully executed employment contract may qualify for a Physician Loan.
Who qualifies for a Physician Loan?

  • To qualify for our Physician Loan program, you must have one of the following degrees, or be a medical resident with proof of a fully executed employment contract:

    • Doctor of Medicine (MD)
    • Doctor of Osteopathy (DO)
    • Doctor of Dental Surgery (DDS)
    • Doctor of Medicine in Dentistry (DMD)
    • Doctor of Veterinarian Medicine (DVM)
    • Doctor of Pharmacy (PharmD)

    Medical doctors with degrees listed above but specializing in a particular field, including but not limited to: Dentists, Podiatrists, and Ophthalmologists are also eligible.

What is Private Mortgage Insurance (PMI)?
  • PMI protects a lender in the event that you stop making payments on your mortgage loan. For a traditional mortgage, most lenders require PMI if the borrower puts less than a 20% down-payment on the home to help mitigate their risk. Level One Bank’s Physician Loan program does not require PMI, regardless of the down-payment amount, saving you money on your monthly mortgage payment.
What is a Physician Loan or a Doctor Loan?
  • A Physician Loan may also be referred to as a “Doctor Loan”. It’s a mortgage program designed for medical professionals that provides more flexibility with debt-to-income (DTI), does not require private mortgage insurance (PMI), and has lower down-payment requirements and higher loan limits than traditional mortgage programs.
Can I use a Physician Loan to refinance my current home mortgage?
  • Yes, our Physician Loan can be used to purchase or refinance your primary residence.
How do I apply for a Physician Loan?
  • You can easily apply online for a Physician Loan through our website. You can also contact a mortgage banker for a free, no-obligation consultation to learn more about the program and find out what you may qualify for.
What are the advantages for a Physician Loan?

  • A Physician Loan offers several advantages for medical professionals when compared to a traditional mortgage. Here are some of the key benefits:

    • Special allowances are made for student loan debt in which deferred payments may not be included with other traditional debts when qualifying for a Physician Loan mortgage.
    • Down-payment requirements are lower than traditional mortgages.
    • There is no Private Mortgage Insurance (PMI) requirement, which saves you money on your monthly mortgage payment.
    • Higher loan limits are allowed on a Physician Loan; our program goes up to $2 Million.
    • If you recently signed a new employment contract, you can close a Physician Loan up to 60 days prior to starting your new job. Your fully-executed employment contract can be used as proof of income instead of pay-stubs.
How much money do I need to put down to qualify for a Physician Loan?
  • Our Physician Loan program offers low down-payment options, including zero-down opportunities. For eligible borrowers, 100% financing is available on loan amounts up to $1 Million1, and 89% financing is available on loan amounts up to $2 Million. For eligible residents, 100% financing is available on loan amounts up to $500,000.
How does a Physician Loan work?
  • A Physician Loan takes into consideration high student loan debt, residency, and new employment contracts when determining your eligibility to qualify for a loan. Student loans may not be counted in your debt-to-income ratio if you have deferred payments, offering a significant advantage over traditional mortgages. Additionally, if you recently signed an employment contract but haven’t started the job yet or haven’t received a paycheck, the contract can be used as your proof of income.

All loans are subject to credit approval. Programs are available only to qualified borrowers. Not all applicants will qualify for all program benefits. Please contact First Merchants Bank to learn more about the program and the eligibility requirements. Programs are subject to change without notice. Underwriting terms and conditions apply. Some restrictions may apply. Must be purchase of a primary residence in Indiana, Michigan, Ohio, Illinois and Kentucky. Borrower must have a minimum credit score of 680 to be eligible.

1100% financing does not exclude closing costs and/or prepaids that may be required.