This loan option is available not just in Michigan, but also in Ohio, Indiana, and Kentucky and requires no private mortgage insurance (PMI), regardless of the loan-to-value.

Mercantile Bank of Michigan operates out of its head office in Grand Rapids, Michigan.

The bank has forty-two branches in thirty-three cities and towns across Michigan and is the state’s third-largest bank. Mercantile also has banking options in Indiana, Ohio, and Kentucky. It was founded less than thirty years ago on the question “What does it mean to be a community bank?” Since then, the bank has strived to dedicate itself to its community and keeps this theme as its core value.

It offers a range of services including personal loans, mortgages including doctor home loans, health savings accounts, financial wellness services, business accounts, municipal deposit accounts, and investor services.

Mercantile Bank of Michigan physician mortgage loan program details

Among the many different banking options Mercantile Bank of Michigan offers its customers is the Mercantile Doctor Mortgage Loan.

This loan option is available not just in Michigan, but also in Ohio, Indiana, and Kentucky and requires no private mortgage insurance (PMI), regardless of the loan-to-value.

Financing options are available for several different residence types so that borrowers are able to invest in a home that they will be sure to love. Available options include single-family homes, condominiums, and primary residence one-unit townhomes. Additionally, refinancing options are available with each of these homes.

Construction-to-permanent and renovation financing are also available for healthcare professionals borrowing through the Mercantile Doctor Mortgage Loan. This allows prospective homeowners to finance the construction of a home from the ground up so that they can invest in a home that is tailored to their exact desires.

Mercantile Bank of Michigan offers healthcare professionals 0% down financing options across their loans, and they feature physician-specific loans of up to $2,000,000.

The loan is designed for practicing doctors, residents, and fellows alike. Professionals eligible for the loan include Doctors of Medicine (MD), Doctors of Osteopathy (DO), Doctors of Chiropractic (DC), Doctors of Dental Surgery (DDS), Doctors of Dental Medicine (DMD), Doctors of Pharmacy (Pharm D), and Doctors of Podiatric Medicine (DPM).

Additionally, Mercantile Bank of Michigan offers the Mercantile Community Champion Loan which doctors and other healthcare professionals are eligible for. The loan is intended for all hospital, Urgent Care, and family practice employees including Registered Nurses (RN), Nurse Practitioners (NP), and Physician Assistants (PA). With the Mercantile Community Champion Loan, borrowers are able to purchase, construct, or renovate single-family homes, condominiums, and one-unit townhomes with refinancing options available. It finances up to $510,400 with 10% down and no PMI.

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Pros of financing your home with Mercantile Bank of Michigan


This bank is based on the idea of community and relationships, and it is smaller than most well-known banks — two things that work together to ensure that Mercantile’s customer service is highly personalized for individual clients in a way that larger banks cannot compete with.

High rating from Better Business Bureau

The Mercantile Bank of Michigan hasn’t been in business long, but since its accreditation in 1998, it has managed to earn an A+ rating from the Better Business Bureau (BBB) with no BBB-related complaints filed over the past 23 years.

No requirement for Private Mortgage Insurance

Private mortgage insurance (PMI) is a kind of insurance that many borrowers have to take out in order to protect their lender, in this case, Mercantile Bank of Michigan, if loan payments should stop being made for any reason. Usually, this insurance will cost borrowers up to 20% of the value of their home--an enormous added price to an already expensive purchase. Fortunately, the Mercantile Bank of Michigan doesn’t require physicians or other healthcare professionals to take out PMI against Mercantile Doctor Mortgage Loans or Mercantile Community Champion Loans. Because of this, borrowers will be able to save more money to either pay back their home loans more quickly, repay student debt, or invest in their futures.

Cons of financing your home with Mercantile Bank of Michigan

Very Limited Physical Locations

Because Mercantile Bank of Michigan is a young bank, it does not have locations across many states as other, more established banks do. Instead, most of Mercantile’s business is conducted solely in Michigan where they have a limited number of branches to serve their customers. If you don’t live in-state, this may not be the best option for you.

Limited Online Presence

Mercantile Bank of Michigan does offer clients online services for bill paying and a few other mobile banking needs, but the bank lacks much in comparison to bigger, interstate banks.

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Jack Wolstenholm - Head of Content Marketing

Jack is the Head of Content Marketing at LeverageRx, the personal finance company that simplifies how healthcare professionals shop for financial products and services. A Creighton University graduate and former advertising creative, he has written extensively about topics in personal finance, work-life, employee benefits, and technology. His work has been featured in MSN, Benzinga, TMCNet, StartupNation, Council for Disability Awareness, and more.

Mortgage LoansPublished February 22, 2021