Physician Home Loans
Are you a new or established physician and considering home ownership? If so, you’re in the right place. Our Physician Home Loan is designed just for you with fewer restrictions and requirements than a traditional mortgage, so you can achieve home ownership even before your first day on the job!
Features & Benefits
100% Financing + No PMI
We offer up to 100% financing—that means no down payment! And Private Mortgage Insurance (PMI) is not required.1
Relaxed Requirements
Get approved with a credit score as low as 620.1 Plus, your student debt can be excluded from your debt-to-income ratio.2
No Income History Required
If you’re a new grad, there’s no income history required—a signed employment contract is all you need.3
Trusted, Local Lending from Start to Finish
We are one of the largest and most trusted mortgage lenders in Arkansas. Plus, with local lending and servicing from start to finish, we are with you every step of the way.
What is it?
A Physician Mortgage, also known as a Physician Home Loan, is a special mortgage product available to doctors. This loan doesn’t have as many restrictions as lenders require for borrowers of conventional loans, such as clearly defined rules regarding debt-to-income rations, proof of long-term employment, a sizable down payment, and private mortgage insurance.
What are the advantages?
One of the many advantages of a Physician Home Loan is you can present an offer letter as proof of income if you’ve not yet started your position as a full-time attending physician. We base your loan on future earnings. You’ll also find a Physician Home Loan can make it faster and easier for residents and attendees to buy a home with little to no money down and avoid Private Mortgage Insurance. In addition, your debt-to-income ratio requirements are much less.
Who is eligible?
Eligible borrowers include:
- Medical Resident
- Medical Fellow
- 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)
Frequently Asked Questions
I’m a medical student. Can I apply?
Unfortunately, no. You must be a practicing resident, fellow, or attending physician to apply for a Physician Mortgage Loan.
What is Private Mortgage Insurance (PMI)?
When most individuals purchase a home and make a down payment of less than 20%, lenders require that borrowers purchase Private Mortgage Insurance (PMI) in the instance that the loan is defaulted on. PMI typically costs between 0.5% – 1.00% of your loan amount per year and is based on insurance rates. This can amount to hundreds of dollars extra on a monthly mortgage payment, depending on the size of the loan. With a Physician Loan, though, PMI requirements are waived even if no down payment is made.
Why does Debt to Income (DTI) matter?
When it comes to applying for a loan, an important measurement of qualifications is your debt-to-income (DTI) ratio. Your DTI is all your monthly debt payments divided by your gross monthly income and helps lenders measure your ability to manage the monthly payments and repay the money you borrow. With a conventional mortgage, the DTI is typically required to be 50% or lower. The higher the DTI, the riskier the loan. This DTI ratio can be difficult to achieve, considering the amount of student loans you may have due to medical school. That’s why a Physician Loan is a great choice because it understands that medical school isn’t cheap and is more relaxed when it comes to DTI restrictions. Other debts, like credit card debt, car loans, and other expenses, are still scrutinized, but a higher DTI associated with medical school debt is not necessarily a disqualifier.
Ready to Get Started?
Tell us about yourself and fill out our application form.
A mortgage loan originator will contact you.
The originator will work with you step-by-step until you’re in your new home.