Med school graduates in Indiana can secure physician mortgage loans in Indiana to buy a home right out of med school.
The loan program makes it easier for new doctors to settle down and purchase a home, even with a large amount of student debt. The physician mortgage program has flexible guidelines, but they vary by lender.
Here’s everything you must know about physician mortgage loans and where to get one in Indiana.
11 Best Indiana Physician Home Loan Lenders
The best physician mortgage loans in Indiana have varying requirements and benefits. We’ve narrowed the information down to help you choose the right loan.
- BMO Bank
- Citizens Bank
- Evolve Bank & Trust
- Fifth Third Bank
- U.S. Bank
- First Merchants Bank
- Huntington Bank
- KeyBank
- Northwest Bank
- Regions Bank
- Truist
Discover The Best Lenders in Indiana Answer just a few questions about your career, where you're buying, and how much you want to borrow. Our service will then show you the exact programs you're eligible for from vetted physician loan specialists who will guide you through every step of the process – obligation-free!
1. BMO Bank
- BBB Grade: A+
- JD Power Score: 805
BMO Bank offers a physician loan program in Indiana for doctors, residents, and fellows, including MDs, DOs, DDSs, and DMDs. The program offers low down payment options, and there is also an option for doctors who’ve practiced for over ten years to get financing too, but with a 10% down payment.
The BMO Bank physician loan program is available on primary residences, including 1 to 2-unit properties.
BMO Bank requires a 5% down payment on loans up to $1.5 million and a 10% down payment on loans up to $2 million.
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2. Citizens Bank
- BBB Grade: A+
- JD Power Score: 818
Citizens Bank offers a physician mortgage loan in Indiana for doctors and residents, including MDs, DOs, DDSs, and DMDs. The program is open during the first ten years after your fellowship. Depending on your qualifying factors, their loan program requires 5% to 10% down.
Citizens Bank doesn’t charge PMI on their loans, and they allow borrowers to close with an active employment contract before starting their position.
Borrowers choosing Citizens Bank have the option of a fixed or adjustable-rate loan.
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3. Evolve Bank & Trust
- BBB Grade: A+
- JD Power Score: N/A
Evolve Bank & Trust offers a physician loan program open to many medical professionals, including MDs, DOS, DMDs, DDSs, pharmacists, and nurse practitioners. This opens up opportunities for others in the medical industry to get mortgage financing despite their high student loan debt.
Evolve Bank & Trust offers its program on single-family homes, townhomes, condos, and 1 to 4-unit properties. But, if you buy a multi-unit property, they may require a higher down payment. In addition, Evolve allows loan amounts as high as $2 million.
Keep in mind Evolve Bank & Trust has higher credit score requirements than other lenders, so only apply if you have great credit. However, if you are a self-employed doctor, you don’t have to wait until you’ve owned your practice for two years to qualify. They accept self-employed doctors much sooner in many cases.
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4. Fifth Third Bank
- BBB Grade: A+
- JD Power Score: 849
Fifth Third Bank offers physician loans in Indiana to doctors just starting their profession and established doctors. This includes interns, fellows, residents, and brand-new doctors.
They have two programs, one for ‘new doctors’ still in their residency or fellowship and another for doctors who have been practicing for at least one year.
The program is open to many doctors, including MDs, DOs, DDSs, DMDs, DPMs, DVMs, and ODs.
The program is only available on primary residences, but medical professionals can borrow up to $1 million with no money down or up to $2 million with a small down payment. Most borrowers can also choose between a fixed and adjustable-rate loan.
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5. U.S. Bank
- BBB Grade: B+
- JD Power Score: 807
US Bank offers a physician loan program strictly for physicians; no other medical professionals, including dentists, qualify. The program is only open to MDs and DOs but is open to those still in their residency or fellowship.
The US Bank physician loan program is only available for primary residences but most home types, including single-family homes, condos, and townhomes.
To qualify, borrowers need 5% down on $1 million loans, 10% on $1.5 million loans, and 15% on $2 million loans.
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6. First Merchants Bank
- BBB Grade: A+
- JD Power Score: 843
First Merchants Bank has a robust physician loan program in Indiana. The program is open to MDs, DOs, DDSs, DMDS, PharmD, and DVMs. First Merchants Bank offers 100% financing on loans up to $1 million and 89% on loans up to $2 million.
With a credit score of at least 680, residents are eligible and can get 100% financing on loans up to $500,000. First Merchants Bank offers purchase and refinance options in this loan program, and borrowers can finance a single-family residence, townhome, or condo.
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7. Huntington Bank
- BBB Grade: A+
- JD Power Score: 821
Huntington Bank has a doctor loan program open to MDs, DOs, DMDs, DDSs, and DVMs, providing benefits to more medical professionals than just doctors. Doctors can choose from a fixed or adjustable-rate loan and can close before starting their position with an active employment contract.
The Huntington Bank program is available on primary residences only but for purchase or refinance.
Borrowers can get a loan for up to $1 million with no down payment, up to $1.25 million with 5% down, and up to $2 million with 10% down on the home.
However, all borrowers must have adequate cash reserves (money in a liquid account) to qualify with Huntington Bank.
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8. KeyBank
- BBB Grade: A+
- JD Power Score: 794
KeyBank offers a physician loan program for MDs, DOs, DDSs, DMDs, and DPMs. They offer 100% financing in some circumstances, and many borrowers qualify to use the financing on not only their primary residence but second or investment homes too.
KeyBank is known for its larger loan amounts, allowing qualified borrowers to get loans as high as $3.5 million. The loan program is available on single-family homes, condos, and townhomes and is available as a fixed or adjustable-rate loan.
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9. Northwest Bank
- BBB Grade: A+
- JD Power Score: N/A
Northwest Bank has a mortgage loan program for physicians, including many different medical professionals, including MDs, DOs, ODs, DDSs, DMDs, and DPMs. They offer fixed and adjustable-rate loans, and doctors can use the program for a purchase or refinance.
Northwest Bank allows loans up to $1.5 million, and many borrowers qualify for no down payment.
Unlike most banks, they don’t charge PMI, and the program is only available on your primary residence.
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10. Regions Bank
- BBB Grade: B+
- JD Power Score: 697
Regions Bank offers a physician mortgage loan program in Indiana for MDs, DOs, DMDs, and DDSs. The downside is they have lower loan limits, but this can be a positive for many borrowers who might risk getting in over their heads in debt.
The program is open to new and established doctors only on your primary residence. Many doctors don’t need a down payment but can only borrow up to $750,000. If you put down 5%, you can borrow up to $1 million, but that’s the limit.
Like most lenders, you can close the loan up to 90 days before your employment begins as long as you have an active employment contract.
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11. Truist
- BBB Grade: A+
- JD Power Score: 650
Truist offers a physician loan program for MDs, DOs, DPMs, DDSs, and DMDs. However, they require down payments on most loans, and the loan program is only available on primary residences.
Borrowers need 5% down on loans up to $1.5 million and 10% down on loans up to $2 million.
They don’t include student loan debt in your debt-to-income ratio, and they don’t charge PMI on your loan, no matter how much you borrow.
You might not have heard of Truist Bank; however, they are one of the country’s top ten banks and offer excellent customer service for all clients.
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About Physician Loans in Indiana
Physician mortgage loans help doctors in Indiana secure mortgage financing with fewer qualifying requirements.
Conventional loans make it hard for new doctors to qualify because of the large amount of student loan debt most medical students have. In addition, a high debt-to-income ratio makes it hard to qualify for most conventional loan programs, making it harder for doctors to qualify.
How They Work
Physician mortgage loans have relaxed debt-to-income ratio guidelines, allowing doctors with high enough income to afford the mortgage, but extensive student loan debt, to get a mortgage.
Some lenders exclude student loan debt from the DTI, and others use methods that make qualifying easier.
In addition, many physician loan lenders in Indiana don’t require a down payment, or if they do, it’s only 5% to 10% on loan amounts as high as $1 million or more.
Most lenders don’t charge PMI on physician mortgage loans, and many lenders allow you to close up to 90 days before starting your position if you have an active employment contract.
Qualifications
Most physician mortgage loans in Indiana require a high credit score (720+), proof of employment (some residencies and fellowships are allowed), and proof of adequate assets for closing costs, the down payment, and mortgage reserves.
The largest factor, however, is your profession. The program is open only to doctors and sometimes other medical professionals.
Eligible Physicians
Each lender offers its program to different types of doctors. For example, some offer it to just MDs and DOs, while others offer it to DDSs, DMDs, chiropractors, nurse practitioners, pharmacists, and other medical professionals.
Pros and Cons of Physician Mortgage Loans in Indiana
All mortgage loans have pros and cons, especially physician mortgage loans in Indiana. They have many benefits, but there are downsides you should consider.
Pros
- Relaxed down payment requirements, including the option for no money down
- No PMI, no matter how much you borrow
- Exclusion of student loans in the debt-to-income ratio
- May close with an employment contract before starting your position
Cons
- Interest rates are often higher
- Most lenders only offer the program on primary residences
- Some lenders restrict which medical professionals qualify
- It’s easy to borrow more than you can afford
Frequently Asked Questions
Physician loans help doctors and other medical professionals secure financing when they don’t have a large down payment or have a lot of debt. Here are some common questions people have about them.
Are Conventional Loans the Same as Physician Mortgage Loans?
Fannie Mae and Freddie Mac back conventional loans. They have lower loan limits and tougher requirements. Doctors often have difficulty qualifying because their debt-to-income ratio is too high with their student loan debt.
Physician mortgage loans exclude student loans from the DTI and often don’t require a down payment, making it easier for doctors to qualify for financing.
Do Physicians Receive Better Interest Rates on Loans?
Doctors often pay higher rates than others on mortgage loans because of the risk physician mortgage loans in Indiana create. Lenders take a big risk because they underwrite and fund the loans themselves; they don’t have any agency guaranteeing them. The rates
Can You Refinance a Physicians Mortgage Loan?
You can refinance a physician mortgage loan. However, it can be difficult because of the high LTV or a high debt-to-income ratio. Physician loans don’t have prepayment penalties, but you might be better off waiting until you owe less than 80% of the property’s value to get conventional financing.
Do Physicians Need a Specific Credit Score to Qualify?
Every lender has different requirements, but most require at least a 720+ credit score to qualify for a physician loan in Indiana.
Should You Get a Physician Mortgage Loan in Indiana?
Physician mortgage loans in Indiana can be good in the right situation. However, be sure you evaluate the entire situation, looking at the big picture to determine if physician loan financing is right for you.
There are alternatives, including conventional, FHA, and VA loans, so look at all options and determine which helps your financial situation the most.
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