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What is a Physician Mortgage Loan?

A physician mortgage loan is a low down payment mortgage available to physicians, dentists and other eligible medical professionals. They do not require mortgage insurance and are often considered jumbo mortgages as they allow higher loan balances than conventional and FHA mortgage loans. We’ve made it easy for doctors to compare lenders that offer these mortgage loans.
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Compare Mortgage Loans for Doctors and Dentists

Loan Amounts For Residents & Fellows $650k (no down payment required)

Loan Amounts For Practicing Physicians $650k (no down payment required)

Minimum Credit Score 640

Available in 9 states

Based in Tupelo, Mississippi, BancorpSouth is a public bank holding company with roughly 300 branches spanning nine states. BancorpSouth provides basic checking, savings, lending, credit card, wealth management and insurance solutions to both individuals and businesses. The company seeks to develop public-private partnerships that foster growth in communities.

BancorpSouth offers a flexible physician mortgage loan product available at any stage of your medical career. If you have a contract of employment, it will be accepted 90 days prior to beginning practice. However, you will be required to present your first pay stub once it is received. Under this doctor home loan program, you can obtain 100% financing for purchase loans. You can also cash out refinance loans up to $650,000. Both single family homes and condos are eligible for this mortgage program. Borrowers must have a minimum credit score of 640. No private mortgage insurance or reserves are required.

Eligible borrowers include:
  • Medical Doctor (MD)
  • Doctor of Osteopathy (DO)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
BancorpSouth will offer up to:
  • 103% financing for loans to $453,100
  • 100% financing for loans to $650,000
  • 95% financing for loans to $1 million
  • 89.9% financing for loans to $1.5 Million
  • 85% financing for loans to $2 million
  • 80% financing for loans over $2 million
Pros
  • The service of a community bank.
  • The convenience of a regional bank.
  • Available to residents, fellows and practicing physicians.
  • Available to US citizens and resident and non-resident aliens
  • Available for single family homes and condos.
  • Minimum credit score of 640 is accommodating.
  • No bank closing costs, PMI, reserves or escrow required.
  • Non-occupant co-borrowers and gift funds are allowed.
Cons
  • Overall, BancorpSouth's solutions and services are quite basic.
  • Limited lending options - for example, currently no student loans
  • Monthly service charge.
Alabama, Arkansas, Georgia, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, Texas

Loan Amounts For Residents & Fellows Not Available

Loan Amounts For Practicing Physicians $417k (no down payment required) / $3MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 4 states

BankSNB offers a doctor loan mortgage program for physicians and dentists. Under this program, doctors can borrow up to $417k with no down payment and as much as $3 million with flexible down payments based on the loan amount. Fixed and Adjustable Rate interest options are available for all products and BankSNB lends in Texas, Colorado, Oklahoma and Kansas.
Colorado, Kansas, Oklahoma, Texas

Loan Amounts For Residents & Fellows Not Available

Loan Amounts For Practicing Physicians $650k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 9 states

About BBVA Compass Bank
Headquartered in Birmingham, Alabama, BBVA Compass is the 30th largest bank in the United States. It's footprint is primarily in the southern U.S and has 672 branches spanning across six states. BBVA Compass was listed among Money Magazine's "Best Banks in America" in 2016.

BBVA Compass Doctor Mortgage Program
BBVA's doctor mortgage program allows borrowers to obtain up to $1.5 million in financing for new home purchases. Eligible properties include single family, multi-family and condo units.

Pros
  • 100% financing up to $650,000
  • Both fixed and adjustable rate options available
  • Can be used for both new purchases and refinancing existing homes
Cons
  • Not available in all states
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
  • Doctor of Optometry (OD)
Alabama, Arizona, California, Colorado, Florida, Nevada, New Mexico, Tennessee, Texas

Loan Amounts For Residents & Fellows $750k (no down payment required)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 9 states

About BMO Harris Bank
Headquartered in Chicago, Illinois, BMO Harris Bank is a subsidiary of BMO Financial Corporation. The bank has over $110 billion in assets and over 570 branches spanning 8 states.

BMO Physician Loan Program
The doctor mortgage loan program offered by BMO Harris Bank is available in 9 states to physicians and dentists with a minimum FICO score of 700. No income history is required for this loan program and BMO can close the loan within 60 days of the start date for the new contract. Mortgage loans available include 10, 15, 20, & 30 year fixed rate or 3/1, 5/1, 7/1, and 10/1 ARM loans. There is no PMI or Mortgage Insurance required.

Pros
  • 100% financing up to $750,000
  • Fixed and adjustable rate mortgage options available
  • Close up to 60 days prior to starting employment
  • The physician loan program can be used for new purchases and no cash out refinances
Cons
  • Not available in all states
  • Physicians that have been practicing for more than 10 years are limited to 90% financing
  • Reserves may be required and seller credit limitations may apply depending on the loan amount and down payment amount
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Washington, Wisconsin

Loan Amounts For Residents & Fellows $1MM (no down payment required)

Loan Amounts For Practicing Physicians $2MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 3 states

The Doctor Loan Program from Cadence Bank is available to MD’s, DO’s, DDS’s, DMD’s, DPMs, ODs and PHARMDs that are currently in training as well as practicing professionals. Cadence's "Early Professional" loan program allows up to $1 million with no mortgage insurance or down payment for eligible specialties in training and those practicing for no more than 5 years.
Cadence also offers a "One-Time Close" construction loan with 10/1 ARM, 15 Year Fixed, and 30 year Fixed Rate loan programs up to $2 million.
Alabama, Mississippi, Texas

Loan Amounts For Residents & Fellows $600k (flexible down payment options available)

Loan Amounts For Practicing Physicians $3MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 22 states

Citizens Bank offers a doctor loan program for MDs, DOs, DMDs and DDSs, both practicing and in training. Borrowers can obtain up to $850,000 in financing for a home purchase. Citizens Bank also offers no PMI construction loans up to $2 million for physicians with low down payment options available.
Connecticut, Delaware, Washington D.C., Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia, West Virginia

Loan Amounts For Residents & Fellows $750k (no down payment required) / $1MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 12 states

About Fifth Third Bank
Headquartered in Cincinnati, Ohio, Fifth Third Bank is one of the largest banks in the United States with over 1,100 branches throughout 10 states. The bank provides commercial banking, branch banking, consumer lending and wealth and asset management services to its customers.

Fifth Third Doctor Loan Program
Their new doctor loan program covers MDs, DOs and DPMs in residency or fellowship and practicing doctors that completed residency within the last 12 months. Under this program, physicians can borrow up to $500k with no down payment or up to $1 million with low down payment options available, both options with no PMI required.

For more established physicians that have been practicing for longer than 12 months (or 24 months if self employed), Fifth Third will lend up to $650,000 with no down payment or up to $1.5 million with flexible down payment options based on loan size, again with no PMI required. Fixed and Adjustable Rate options are available for all products.

Pros
  • 100% financing available
  • Close up to 90 days prior to employment start date
  • Can be used for both new purchases and refinancing existing homes
  • Both fixed and adjustable rate options available to borrowers
  • Student loans in deferment or forbearance are not counted towards the borrower's debt to income ratio
Cons
  • Not available in all states
  • Loans are capped at $1.5 million
  • Eligibility for mortgage loan programs depends on current career status
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
  • Doctor of Podiatric Medicine (DPM)
Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, West Virginia

Loan Amounts For Residents & Fellows $850k (no down payment required) / $1.5MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $850k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score 720

Available in all 50 states

About Flagstar Bank
Flagstar Bank is a $16.9 billion savings and loan holding company headquartered in Troy, Michigan. Flagstar provides commercial, small business, and consumer banking services through 99 branches in the state. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 90 retail locations in 29 states, representing the combined retail branches of Flagstar and Opes Advisors mortgage division.

Flagstar Doctor Mortgage Program
Flagstar's doctor mortgage program offers no down payment financing up to $850,000 and up to $1.5 million with down payments based on loan amounts. The mortgage loan program is available in all 50 states for both new purchases and refinancing existing mortgage loans. Non-occupant co-borrowers are allowed.

Product available only on 5-1 and 7-1 adjustable rate mortgages. Flagstar has a minimum credit score requirement of 720.

Pros
  • Available many types of healthcare professionals
  • Can be used for both new purchases and refinancing existing homes
  • Non-occupant co-borrowers are allowed on the loan
  • Can close up to 60 days prior to starting employment
  • No PMI required
Cons
  • Only adjustable rate mortgages available
Eligible Borrowers
  • Medical Resident (Educational License)
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Optometry (OD)
  • Doctor of Ophthalmology (MD)
  • Doctor of Podiatric Medicine (DPM)
  • Doctor of Osteopathy (DO)
  • Nurse Anesthetist
  • Nurse Practitioner
  • Clinical Nurse Specialist
  • Veterinarian
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Washington D.C., Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Loan Amounts For Residents & Fellows $1.5MM (no down payment required)

Loan Amounts For Practicing Physicians $1.5MM (no down payment required)

Minimum Credit Score 700

Available in 6 states

Fulton Mortgage Company offers no down payment for loans up to $1.5 million for MDs, DOs, DDSs, DMDs, PHARMDs and DVMs with a credit score of 700 or higher. Borrowers can purchase up to 60 days in advance of their employment contract start date. Mortgages available include 30 and 15 year fixed rate and 3/1, 5/1, 7/1 and 10/1 ARM. Eligible medical professionals must not be out of training for more than 10 years unless relocating, in which the 10 year rule does not apply. No reserves are required by Fulton Mortgage Company to close.
Delaware, Washington D.C., Maryland, New Jersey, Pennsylvania, Virginia

Loan Amounts For Residents & Fellows $750k (no down payment required) / $1.5MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 3 states

Horizon Bank offers a doctor loan program for physicians, dentists and optometrists in Indiana, Illinois and Michigan that are within 90 days of their contract start date. Borrowers can obtain up to $750,000 with no down payment and up to $1.5 million with low down payment options and no PMI based on credit score. A payroll deposit is required with an auto-debit from a Horizon bank account.
Indiana, Illinois, Michigan

Loan Amounts For Residents & Fellows $750k (no down payment required)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $2MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 8 states

Huntington Bank offers a doctor loan program for MDs, DOs, DMDs and DDSs, both practicing and in training. For those practicing, borrowers can obtain up to $2 million with low down payment options available. This amount is reduced to $750,000 for residents and fellows. This program is available to MDs, DOs, DDSs, DMDs, ODs, DPMs and DVMs.
Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, West Virginia, Wisconsin

Loan Amounts For Residents & Fellows $1MM (no down payment required)

Loan Amounts For Practicing Physicians $1MM (no down payment required)

Minimum Credit Score Not Available

Available in 14 states

IBERIABANK Mortgage Doctor Mortgage Program
IBERIABANK Mortgage offers doctor loans to physicians, dentists and veterinarians both in residency and practice. Mortgage loans are offered in 5/1 ARM, 7/1 ARM and 30 year fixed options with no mortgage insurance needed and no reserve requirements. One-time close construction loans are also available to prospective borrowers.

Pros
  • Both fixed and adjustable rate options available
  • No reserve requirements for mortgage loan borrowers
  • One-time close construction loans are available
Cons
  • Not available in all states
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
  • Doctor of Veterinary Medicine (DVM)
Alabama, Arkansas, Connecticut, Florida, Georgia, Louisiana, Mississippi, Missouri, New Jersey, New York, North Carolina, South Carolina, Tennessee, Texas

Loan Amounts For Residents & Fellows $1MM (no down payment required)

Loan Amounts For Practicing Physicians $1MM (no down payment required)

Minimum Credit Score Not Available

About KeyBank
Headquartered in Cleveland, Ohio, KeyBank is one of the nation's largest banks with $137 billion in assets and over 1,100 full service branches in 15 states. KeyBank provides retail and commercial banking services, investment management and consumer lending products across the United States.

KeyBank Doctor Loan Program
KeyBank's doctor loan program provides up to $1 million with no PMI. This program is available for single family housing and condos and is available in both fixed and adjustable rate options.

Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Optometry (OD)
  • Doctor of Ophthalmology (MD)
  • Doctor of Osteopathy (DO)
  • Veterinarian (DVM)

Loan Amounts For Residents & Fellows $850k (flexible down payment options available)

Loan Amounts For Practicing Physicians $850k (flexible down payment options available)

Minimum Credit Score Not Available

Available in 6 states

The Physician Mortgage Loan Program from NBT Bank is available to physicians, dentists, optometrists and podiatrists.. The program offers low down payments up to $850,000 in Main, Massachusetts, New Hampshire, New York, Pennsylvania and Vermont. NBT Bank's physician loan has a minimum credit score of 700.
Maine, Massachusetts, New Hampshire, New York, Pennsylvania, Vermont

Loan Amounts For Residents & Fellows $750k (no down payment required) / $1MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $1MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 15 states

About Regions Bank
Headquartered in Birmingham, Alabama, Regions Bank is a regional lender that primarily operates in the southeastern United States. It is one of the largest full-service providers of commercial, consumer, mortgage and investment management banking products and services.

Regions Doctor Mortgage Program
Regions offers their physician mortgage product in 15 states and is available for residents, fellows and practicing physicians with no restriction regarding the number of years in practice, which is unique relative to other lenders. Like most doctor loan programs, borrowers can close on a new home up to 60 days prior to the start of their employment.

Pros
  • 100% financing available to physicians and dentists
  • Both fixed and adjustable rate options available
  • Can be used for both new purchases and refinancing existing homes
  • Can close up to 60 days prior to starting new employment
Cons
  • Not available nationwide
  • Additional down payment may be required if the property is in a declining market
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Missouri, North Carolina, Ohio, South Carolina, Tennessee, Texas

Loan Amounts For Residents & Fellows $750k (no down payment required) / $1.5MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 13 states

The Doctor Loan Program from SunTrust Mortgage is available to MD’s, DO’s, DDS’s and DMD’s that are currently in residency, and practicing professionals that have completed their training within the last 10 years. Residents and fellows are eligible for loan amounts up to $750,000 with no downpayment* while those within ten years of residency completion are eligible for higher loan amounts up to $1,500,000 with down payment options based on loan size.

*Borrowers should note that 100% mortgage financing will result in no property equity until such time as the loan principal is paid down through regular mortgage payments and/or the property value appreciates. Additionally, if property values decline you could owe more than your property’s value. A down payment may be required if the property is located in a declining market or if required by state regulations. Additional down payment may be required if property is in a declining market or if required by state regulations.
Alabama, Arkansas, Delaware, Washington D.C., Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia

Loan Amounts For Residents & Fellows $750k (no down payment required) / $2MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $2MM (flexible down payment options available)

Minimum Credit Score Not Available

The doctor loan program from Synovus Mortgage is available to practicing physicians, dentists and podiatrists primarily in the southeast. Through this loan program, borrowers can obtain up to $750,000 with no down payment and up to $2 million with down payments based on the loan size. The doctor loan program through Synovus does not require mortgage insurance and borrowers must be a US citizen or permanent resident alien to qualify.

Loan Amounts For Residents & Fellows $2MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $2MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in all 50 states

About TIAA Bank
Headquartered in Jacksonville, Florida, TIAA Bank was launched in 2018 following the merger of EverBank and TIAA Direct. Built on EverBank's banking model, TIAA Bank provides a full suite of financial services for consumer and commercial customers across all 50 states including deposit, residential and commercial lending products.

TIAA Bank Doctor Mortgage Program
TIAA Bank's doctor loan mortgage program is available to existing medical doctors including DOs, dentists, dental surgeons and veterinarians who are actively practicing and are within 10 years of completing residency. Mortgage loans start at $200,000 and extend up to $1.5 million on single family homes and up to $2 million on two-unit properties. This doctor loan program does not require PMI and deferred student loans are excluded from debt calculations. TIAA Bank allows closing up to 60 days prior to starting a new employment position.

Pros
  • Available to borrowers in all 50 states
  • Can be used for both new purchases and refinancing existing homes
  • Can close up to 60 days prior to starting new employment
Cons
  • No 100% financing program available
  • Borrowers that completed residency more than 10 years ago are not eligible for this doctor loan program
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
  • Doctor of Veterinary Medicine (DVM)
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Washington D.C., Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Loan Amounts For Residents & Fellows $424k (no down payment required) / $1.5MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $424k (no down payment required) / $1.5MM (flexible down payment options available)

Minimum Credit Score Not Available

The Doctor Loan Program from University Federal Credit Union is available to MD's, DO's, DDS's and DMD's in both training and practice. Residents and fellows are eligible for loan amounts up to $424,000 with no down payment and can obtain up to $1.5 million in financing with down payments based on the loan size.

Loan Amounts For Residents & Fellows $3MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $3MM (flexible down payment options available)

Minimum Credit Score 710

Available in all 50 states

About US Bank
Headquartered in Minneapolis, Minnesota, US Bank is the fifth largest bank in the United States. The company provides commercial and consumer banking, investment, mortgage and trust services to its customers. It has over 3,000 branches across all 50 states.

US Bank Doctor Mortgage Program
US Bank's doctor mortgage program allows borrowers to obtain up to $2 million in financing for both new purchases and refinancing existing home loans. Eligible properties include single family, multi-family and condo units.

Pros
  • Available to borrowers in all 50 states
  • Both fixed and adjustable rate options available
  • Can be used for both new purchases and refinancing existing homes
  • Can close up to 6 months prior to starting employment
  • Borrowers can use gifted funds for down payment
Cons
  • Requires at least 10 percent down payment
  • May need extra reserves in certain states
Eligible Borrowers
  • Medical Doctor (MD)
  • Doctor of Dental Surgery (DDS)
  • Doctor of Dental Medicine (DMD)
  • Doctor of Osteopathy (DO)
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Washington D.C., Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Loan Amounts For Residents & Fellows $750k (no down payment required) / $2MM (flexible down payment options available)

Loan Amounts For Practicing Physicians $750k (no down payment required) / $2MM (flexible down payment options available)

Minimum Credit Score Not Available

Available in 5 states

Washington Trust Mortgage Company's doctor loan program allows up to 100% financing up to $750,000. There is no mortgage insurance (PMI) required with this program. Student loans that are deferred out at least 12 months are not calculated into the borrower's debt to income ratio. Borrowers can close up to 60 days prior to starting a new employment position. This mortgage program is available for both purchasing and refinancing.
Connecticut, Massachusetts, New Hampshire, Rhode Island, Vermont

Current Physician Mortgage Loan Rates

Here's our weekly mortgage market update for the week beginning August 13, 2018

Mortgage rates continue to hold steady through the busy summer buying season.

According to the latest Freddie Mac Primary Mortgage Survey, fixed and adjustable mortgage rates fell slightly in the past week.

For the week ending August 9, the average 30-year fixed rate was 4.59 percent. That was down from 4.60 the week before. A year ago at this time, 30-year rates averaged 3.90 percent.

Average rates on 15-year fixed loans dropped from 4.08 percent to 4.05 percent in the past week. Last year’s average 15-year rate was 3.18 percent.

The most recent average on a 5-year Treasury-indexed hybrid adjustable-rate mortgage was 3.90 percent. Last week, the rate averaged 3.93 percent. A year ago, the rate was 3.14 percent.

Mortgage rates have moved little since rising each week from January to the middle of March.

“This stability is much needed for home sales, which have crested because of the multi-year run up in prices, tight affordable inventory and this year’s higher rates,” said Sam Khater, Freddie Mac’s chief economist.

“Going forward, the strong economy will support the housing market, but with affordability pressures mounting, further spikes in mortgage rates will lead to continued softening in home price growth.”

What Doctors Are Saying About LeverageRx

This is a really helpful service to get in contact with the physician loan specialists at all of the different banks more quickly, instead of needing to call each bank separately and wait to hear back from the loan officers who specialize in these loan products. We actually switched from the lender we were working with to one that we found through LeverageRx.
- Dr. Katie Cole, Psychiatrist

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Doctor Mortgage Loan FAQs

How are physician mortgages and doctor loans different than traditional mortgages?
Physician mortgage loans, also known as doctor loans, are different than traditional mortgages in that they are exclusively offered to medical professionals and require little to no money down and no personal mortgage insurance (PMI). Lenders are willing to offer these products early in a physician's career as they know that the possibility of default is relatively low among medical professionals.

Doctor loans typically have the following characteristics:
  • Low to no down payment. One of the most well known characteristics of doctor loans is they require little to no down payment on the loan. No down payment loans are typically capped by most lenders between $500,000 and $750,000 and will require a down payment if the loan amount is higher.
  • Relaxed debt to income ratios. For doctors with student loans, meeting normal debt to income restrictions can be a hurdle to getting a mortgage loan. Doctor loans have more relaxed guidelines and some lenders won't include student loans in their underwriting calculations.
  • No income history needed. Doctor loan lenders will allow borrowers to close on a home before they start working as long as they have a signed employment offer. Many lenders will allow closing up to 90 days prior to starting a job. Self employed doctors are sometimes able to qualify with as little as 6 months of income history.
  • No PMI. Almost all lenders require private mortgage insurance if the borrower puts less than 20 percent down on a home loan. However, doctor loans rarely require PMI on the loan despite a low down payment.
What are the rates and fees associated with a physician mortgage loan?
Interest rates for physician loans vary by lender but are typically higher than what you would see from a conventional mortgage with a higher down payment. However, physician loans don't require PMI whereas conventional mortgages with a down payment less than 20% will require you to obtain PMI.

Putting a smaller down payment on a home will also result in higher interest over the life of the loan. Consider the following example:

Scenario 1: $500,000 mortgage with no down payment
  • $400,000 mortgage balance
  • 30 year fixed rate at 4.50%
  • Monthly payment of $2,027 (not including taxes)
Under this first scenario, the borrower would be making monthly payments of $2,027. The total cost of the loan over the entire term would equal $729,627 with a total interest cost at $329,627.

Scenario 2: $500,000 mortgage with no down payment
  • $500,000 mortgage balance
  • 30 year fixed rate at 4.50%
  • Monthly payment of $2,533 (not including taxes)
In the second scenario, while the borrower has more flexibility in not making a down payment, the total monthly payment rises to $2,533. Additionally, the total cost of the loan over the 30 year term increases to $912,034. With no down payment, the borrower will pay an extra $82,407 in interest cost.
Are there any other mortgage resources out there that are useful?
There are several great resources to help you learn more about mortgage loans and purchasing a home. Here are a few that we like:
  • Mortgage Calculator: This is a free resource to help you determine how much you can afford and help estimate your monthly mortgage and insurance payments.
  • Student Doctor Network: This is a great thread on the Student Doctor Network forum that discusses the doctor loan program.
What other lenders offer a physician mortgage loan program?

Physician Mortgage Loans by State