Leaving medical school with $200,000+ in student loans may make buying a home with conventional financing impossible, but physician mortgage loans in Maryland make it much easier.
Many lenders in Maryland help doctors get the mortgage financing they need to buy a home, whether you’re in your residency or a full-fledged doctor.
The key is understanding the terms and knowing what you can afford before borrowing a
physician mortgage in Maryland.
11 Best Maryland Physician Home Loan Lenders
Here are the top physician mortgage loans in Maryland:
- BMO Bank
- Evolve Bank & Trust
- KeyBank
- First National Bank
- Flagstar Bank
- Fulton Bank
- Huntington Bank
- Northwest Bank
- TD Bank
- Truist
- US Bank
Discover The Best Lenders in Maryland 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 great loan program for physicians in Maryland. The program is open to new doctors, residents, and fellows. You can apply for the program for the first ten years of your career but may still be eligible after then, with a 10% down payment.
BMO Bank offers physician’s loans on single-family homes, condos, townhomes, and 1 -2 unit properties.
BMO offers 2 financing options in Maryland:
- 95% financing up to $1.5 million
- 90% financing for $1.5 – $2 million
BMO Bank offers a $500 closing cost credit if you set up auto-pay, and the program is open to MDs, DOs, DDSs, and DMDs.
Like most banks, BMO Bank allows physicians to close on their loans up to 90 days before they start employment if they have an employment contract, and they don’t charge PMI.
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2. Evolve Bank & Trust
- BBB Grade: A+
- JD Power Score: N/A
Evolve Bank has a physician’s loan program open to more than regular doctors and dentists. It’s also open to nurse practitioners and pharmacists. Along with the flexibility of who’s eligible,
Evolve Bank allows its doctor loan program in Maryland on up to 4-unit properties. Most lenders on this list allow only 1 to 2-unit properties.
The key to getting approved, though, is you must have great credit and cash reserves if you buy anything more than a single-unit property. The program is open to professionals in the first ten years of their career with the following designations – MDs, DOs, DDSs, DMDs, pharmacists, NPs, and clinical nurse specialists.
Evolve Bank makes the application process simple, and some applicants may get a loan with no money down.
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3. KeyBank
- BBB Grade: A+
- JD Power Score: 809
KeyBank offers many options for doctors in Maryland, with loan amounts much higher than most lenders offer. With KeyBank, you can apply for a loan of up to $3.5 million, but you must have great qualifying factors and prove you can repay the loan.
They still allow low down payments, or at least much lower than traditional lenders would require on conventional or jumbo loans. They also don’t charge PMI, no matter how much you borrow.
Unlike most lenders on this list, KeyBank allows doctors to purchase a primary residence, vacation, or investment home with a physician loan. The program is available on most property types, including single-family, PUDs, and condos, and MDs, DOs, DPMs, DDSs, and DMDs are eligible for the program.
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4. First National Bank
- BBB Grade: A+
- JD Power Score: 801
First National Bank offers a great doctor loan program in Maryland, allowing doctors to buy an owner-occupied property or a second home. The program is available on up to 2-unit properties, and you don’t need a down payment if you borrow less than $1 million.
If you need a larger loan amount, you’ll need a 5% to 10% down payment, but if you buy a second home, you’ll need a 20% down payment. However, no one pays PMI on physician loans from First National Bank.
The physician loans at First National Bank are available as fixed or adjustable-rate loans, and the program is open to MDs, DOs, DDSs, DVMs, and DMDs.
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5. Flagstar Bank
- BBB Grade: A-
- JD Power Score: 781
Flagstar Bank has a profound physician’s loan program; however, it’s only open to first-time homebuyers, and you must be in the early part of your career. However, you may be eligible for the Flagstar Bank physician loan program if you already own a home and need to refinance it.
Flagstar Bank offers up to $1 million with no down payment, but they require a higher-than-average credit score of 720. If you need to borrow more than $1 million, you’ll need a small down payment, but you won’t pay PMI.
The property types for this loan program are flexible, and many medical professionals can apply, including veterinarians, dentists, and nurses. Flagstar offers fixed and adjustable-rate loans with competitive rates and fees.
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6. Fulton Bank
- BBB Grade: A+
- JD Power Score: N/A
Fulton Bank offers a great physician loan program for doctors in Maryland. The program is open to many medical professionals, including doctors, dentists, pharmacists, and veterinarians, with no down payment requirements on loans up to $1.5 million.
If you need a higher loan amount, you must put down 5% on loans up to $2 million and 10% on loans up to $3 million, which is much more flexible than most lenders.
Fulton Bank doesn’t charge PMI on doctor loans and allows seller concessions of up to 6%. In addition, if you need to make a down payment, they allow gift funds from your immediate family, and you can close the loan up to 90 days before you start working if you have an employment contract.
Fulton Bank offers flexible terms, including fixed-rate loans with 15 or 30-year terms, several adjustable-rate options, and refinance options.
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7. Huntington Bank
- BBB Grade: A+
- JD Power Score: 821
Physician loans at Huntington Bank are available to MDs, DOs, DMDs, DVMs, and DDSs. You can borrow up to $1 million with no down payment, up to $1.25 million with 5% down, and up to $2 million with 10% down.
The physician loan program in Maryland is available for purchases and refinances in fixed or adjustable rates. However, you may only use the program on your primary residence; it’s unavailable for vacation or investment homes.
One difference with Huntington Bank is the requirement for cash reserves. If your income stops, you must prove you have money in a liquid account to cover the loan.
Like most lenders, you can close the loan with an employment contract that begins within 90 days, and they don’t charge PMI.
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8. Northwest Bank
- BBB Grade: A+
- JD Power Score: N/A
Northwest Bank isn’t as well known as other banks on this list, but they offer a flexible physician loan program in Maryland.
The bannk offers no down payment loans up to $1.5 million. The amount you can borrow and the down payment required depends on your qualifying factors.
They offer fixed and adjustable rate loans, and the program is open to MDs, DOs, ODs, DDSs, DMDs, and DPMs.
Like most banks on this list, they also don’t charge PMI, which can save you thousands of dollars on your loan.
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9. TD Bank
- BBB Grade: N/A
- JD Power Score: 837
TD Bank is a household name, offering a great physician loan program in Maryland. To be eligible, you must have a TD Bank account, which is easy for doctors to achieve.
One downside of the TD Bank physician loan program is the loan limits. They only allow no down payment on loans up to $750,000. All other loans need a down payment. For example, you must put down 5% on loans up to $1,250,000 and 10% on loans up to $1,500,000.
The program is available on most property types, and you won’t pay PMI. Like most lenders, you can close the loan up to 90 days before starting your job if you have an employment contract, and TD Bank has relaxed guidelines regarding student loan debt and your debt-to-income ratio.
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10. Truist
- BBB Grade: A+
- JD Power Score: N/A
Truist Financial, a merger between SunTrust and BB&T, offers a great doctor loan program in
Maryland. It’s open to MDs, DOs, DDSs, DPMs, and DMDs.
You can borrow as much as $1 million without a down payment. However, if you need a larger loan amount, you must put down 5% on loans up to $1.5 million and 10% on loans up to $2 million.
Unlike many lenders on this list, you can use the program for the first 15 years of your career, but if you are 10+ years in your career, you must make a down payment of 10%.
The program is only for use on a primary residence, but they have relaxed guidelines regarding your debt-to-income ratio.
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11. US Bank
- BBB Grade: B+
- JD Power Score: 807
US Bank offers a physician loan in Maryland with one large exception. It’s only open to doctors, not dentists.
Also, unlike other lenders, US Bank doesn’t have a no down payment option, but this isn’t necessarily bad since it forces you to have some ‘skin in the game.’
To get a loan, you’ll need 5% down on loans up to $1 million, 10% down on loans up to $1.5 million, and 15% down on loans up to $2 million. The program is only open to MDs and DOs, but residents and fellows may apply.
US Bank also has a unique way of handling your student debt. They don’t exclude it from your DTI but use your lower income-based repayment amount or 2% of the loan balance if you are still in deferment.
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How Physician Mortgage Loans Work In Maryland
Physician loans are flexible mortgage loans for doctors in Maryland. They have relaxed underwriting guidelines regarding the debt-to-income ratio, and most lenders have low down payment requirements.
The loan program works like any other loan, meaning you must prove you can afford the payments, and you’ll usually have the option of a fixed or adjustable-rate loan.
However, physician loans are easier for doctors to get than conventional loans. That’s because doctor loans often exclude or reduce your student debt payments to calculate your DTI, making it seem like your loan is easier to afford.
Conventional loans have stricter guidelines but also prevent you from getting in over your head. So it’s important to be careful when considering a doctor loan so that you aren’t taking on a loan you can’t afford.
With the exclusion of student debt from your DTI and the ability to get a loan without a down payment, it’s easy to persuade yourself you’re ready to buy a home, but use caution.
Your mortgage payment will be high with a physician loan, and you’re on the hook for the debt for the next 15 to 30 years. Make sure it’s something you’re ready to take on and live with for that long to ensure it’s the right decision.
Pros and Cons
All mortgage loans have pros and cons. Understanding the good and bad sides of a physician mortgage in Maryland can help you make the right choice.
Pros
- Low or no Down Payment – Most doctor loans in Maryland have low down payment requirements. Many lenders allow you to borrow as much as $1 million with no money down. If you need to borrow more, the highest down payment is usually 10% to 15%. This differs from conventional and jumbo loans that often require down payments as high as 20% or more.
- Flexible Debt-to-Income Ratio Requirements – Many physician loan programs exclude or reduce your student loan debt payments to make it easier to qualify for a mortgage. If you have a lot of student debt, like most med school grads, this can make it easier to qualify for competitive financing.
- No Private Mortgage Insurance – Most lenders don’t charge PMI on physician loans in Maryland. This can save you thousands of dollars over the life of the loan and is unheard of with most other loans. Typically you need 20% down before eliminating PMI, but doctor loans don’t charge it.
- Close Before Starting your Job – Conventional loans require that you have a 2-year job history to qualify for a mortgage, but doctor loans don’t have that requirement. As a result, you can close the loan soon after starting your job or even before you start it if you have an active employment contract that begins in 90 days or less.
Cons
- High-Interest Rates – Doctor loans have higher interest rates than conventional and sometimes jumbo loans because of the risk. Lenders base the interest rate on the risk of default, and since most loans don’t require a down payment, or if they do, it’s low, lenders take a significant risk. The higher interest rates compensate for it.
- Primary Homes Only – Most physician loan programs are only for your primary residence. This means you can’t buy a vacation or investment home with the program and must wait until you qualify for conventional financing.
- Buying More than You Can Afford – Physician loans make it easy to borrow more loans than you can afford since the underwriting guidelines are more relaxed. For example, in some cases, you don’t have to save for a down payment. Many lenders also exclude student debt from your DTI, making it easier to qualify but not necessarily easier to afford.
Frequently Asked Questions
Check out more questions about the best physician mortgage loans in Maryland.
How much student loan debt does the average doctor have?
The average doctor leaves med school with $202,450 in student loans, and paying the debt in full takes 20 to 25 years.
What requirements does Maryland have for physician loans?
The requirements for physician loans in Maryland vary by lender since each lender keeps the loan on their books. In addition, physician loans aren’t government-backed or backed by a GSE like Fannie Mae, so lenders can make their requirements for the program.
How are physician loans and conventional loans different?
Physician loans are easier for doctors to qualify for because they don’t require a down payment (or allow low down payments) and exclude student debt from the debt-to-income ratio.
Conventional loans require higher down payments and use the full student loan payment to qualify applicants for the loan.
It might seem like a bad thing that conventional loans are harder to qualify for, but they keep you from borrowing more than you can afford.
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Do doctors get low-interest rates?
Doctors don’t get lower interest rates. They often pay higher rates to make up for the risk they pose to lenders. With the flexible guidelines lenders offer, they put themselves at risk of default, so they often charge higher interest rates to make up for it.
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