Do Physician Assistants Qualify for Physician Mortgages?
Regrettably, the answer is not straightforward. While certain lenders do include physician assistants in their doctor home loan program, others do not. Currently, the following lenders listed on LeverageRx offer their doctor home loan programs to physician assistants (PA).
Flagstar
Flagstar offers the most extensive physician mortgage program among all lenders that have specialized programs for medical professionals, and this program also covers physician assistants.
The list of medical titles includes MD, DDS, DMD, OD, MD, DPM, DO, NP, RPh, PharmD, DVM, PA, and CRNA.
The majority of lenders have restrictions on their loan programs for MDs and DDs, making Flagstar’s inclusion of numerous specialties a distinctive feature. As a resident undergoing training, you may be eligible for a 100% financing on a loan amount of up to $650k, while practicing physicians can receive 100% financing for up to $1.5MM. Read more in our Flagstar Physician Mortgage Review.
First Western
The physician mortgage program at First Western extends to include physician assistants. The following designations are accepted by First Western: MD, DO, DDS, DMD, PA, NP, and CRNA.
Whether you are in training or already attending, you can get 100% financing at First Western for up to $850k. If you’re willing to put a little bit down, you can get 95% financing up to $1MM.
Frandsen Bank & Trust
Frandsen Bank & Trust is the third lending institution at LeverageRx that offers a physician assistant mortgage program. The following medical specialties are eligible for this program: MD, DO, DDS, DMD, OD, DVM, NP, PA, PharmD, RPh, and CRNA.
The only disadvantage of Frandsen’s physician mortgage program is that it mandates a 5% down payment. This program offers the option of financing up to 95% of $1.25M or up to 90% of $2M. However, making a down payment has its benefits, such as potentially securing a lower interest rate.
Are Physician Assistant Mortgages Available in all 50 States?
Many people are accustomed to nationwide financial institutions like Bank of America, Wells Fargo, and J.P. Morgan Chase, which can be found in all 50 states. However, home loan providers are usually limited to specific regions. This is especially true for lenders with dedicated doctor home loan programs. For instance, TD Bank has a highly regarded program for medical professionals, but eligibility is limited to those residing in the Northeast. Another lender, such as U.S. Bank, also offers a physician mortgage program, but it is not available in New York state.
The qualification for a physician mortgage depends on both your medical specialty and your physical location. To simplify the process, LeverageRx matches potential borrowers, such as yourself, with loan officers who have experience working with physician assistants. In under two minutes, you can be connected with a loan officer who specializes in physician mortgages in your specific state.
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Why Should Physician Assistants Get a Physician Mortgage?
When faced with the decision between a physician mortgage and a conventional loan, the clear choice is the physician mortgage. This is because banks prioritize customers with a high net-worth, and it is well-known that medical professionals fall into this category due to their stable, secure, and high-paying salaries for life. Therefore, a physician mortgage offers numerous advantages, such as:
Lower Interest Rates
One significant advantage of doctor loan programs is that lenders often offer medical professionals a lower interest rate on their mortgage in order to attract their business. This can be a beneficial perk for those in the medical field.
No Down Payment
A majority of lenders providing a doctor mortgage also provide a 100% financing option for both residents and practicing doctors (and potentially physician assistants if you meet the criteria). This allows you to avoid having to save up for a down payment.
Easy Debt-to-Income Ratios
The use of physician mortgages allows for the reassessment of the influence of student loan debt or the complete disregard of it. While obtaining a medical degree can be costly, the availability of physician mortgages eliminates the concern of one’s debt negatively affecting them.
No Prior Work History Required
Due to the rigorous training required for physician assistants, lenders do not typically consider work history as a qualification for physician mortgages.
No Private Mortgage Insurance (PMI)
If a borrower does not put down at least 20%, they are typically required to obtain private mortgage insurance (PMI) for conventional mortgages. The lender determines the cost of PMI, which can range from less than 1% to 5% of the loan. However, physician mortgages do not have this requirement for PMI.
Jumbo Mortgages Available
A physician mortgage lender can provide significantly larger financing options compared to traditional loans or FHA. They may offer the opportunity to purchase homes worth $1 million, $2 million, or even higher amounts.
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