Physician loans in Michigan make homeownership accessible to early-career physicians who may not have the cash-on-hand or employment history to qualify for a conventional mortgage program.
If you’re a physician and purchasing a new home in Michigan (or refinancing your current mortgage) is on the horizon for you, then consider using a physician mortgage loan.
The Wolverine State is home to over 42,000 practicing physicians, making it a favored choice among doctors.
Whether you’re a resident moving to Michigan for training or well into your career practicing medicine, a physician home loan might be your best financing option.
We hope to help you narrow down the overwhelming list of reputable mortgage lenders so that you can find your preferred provider. Keep reading to dive into the need-to-know details about the best physician loans in Michigan.
10 Best Michigan Physician Home Loan Lenders
Here are the top physician mortgage loan lenders in MI:
- BMO Bank
- Citizens Bank
- Evolve Bank & Trust
- Fifth Third Bank
- First Merchants Bank
- Flagstar Bank
- Huntington Bank
- KeyBank
- Northwest Bank
- US Bank
Discover The Best Lenders in Michigan 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’s physicians’ mortgage program provides generous financing for the purchase or refinance of a primary residence. Eligible property types include 1-2 unit buildings, single-family homes, townhouses, and condominiums.
BMO offers three financing options in all Michigan:
- 100% financing up to $1 million
- 95% financing for $1 – $1.5 million
- 90% financing for $1.5 – $2 million
All financing options exclude private mortgage insurance (PMI), which can save you hundreds of dollars on your mortgage payment each month.
Medical residents, interns, fellows, and new physicians can purchase or refinance their homes with an employment contract that starts within 90 days of closing. Previous income history is not required for physicians who can provide proof of future income.
The program is open to the following:
- Medical Doctors (MD)
- Doctors of Dental Surgery (DDS)
- Doctors of Dental Medicine (DMD)
- Doctors of Osteopathic Medicine (DO)
Borrowers who open a BMO Bank account and enroll in AutoPay can qualify for a $500 closing cost discount.
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2. Citizens Bank
- BBB Grade: A+
- JD Power Score: 818
Citizens Bank extends its Doctor Mortgage Loan program to MDs, DOs, DDSs, and DMDs, including medical residents. The program offers several competitive down payment options:
- 5% down payment on loans up to $850,000
- 10% down payment on loans up to $1,000,000
- 15% down payment on loans up to $1,500,000
Like all physician loan programs, you won’t have to pay PMI.
Borrowers who have a Citizens Bank account may be eligible for discounts. The program even provides construction loans for medical professionals who want to build their dream homes.
Deferred student loans are excluded from DTI calculations, but it’s also an option to use income-driven repayment amounts to qualify.
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3. Evolve Bank & Trust
- BBB Grade: A+
- JD Power Score: N/A
Evolve Bank & Trust extends up to $2 million in financing to the following medical professionals:
- Chiropractor (DC)
- Dental Surgeons (DDS)
- Dentists (DDM)
- Medical Doctors (MD)
- Nurse Anesthetist
- Nurse Practitioner (NP)
- Optometrist (OD)
- Pharmacists (RPH)
- Physician Assistant (PA)
- Podiatrist (DPM)
- Veterinarians (DVM)
Qualified borrowers can secure 100% financing on loans up to $1 million, but larger loan amounts will require a down payment.
Loans up to $1.25 million will require at least 5% down, loans up to $1.5 million will require at least 10% down, and loans up to $2 million will require $2 million.
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4. Fifth Third Bank
- BBB Grade: A+
- JD Power Score: 815
Fifth Third Bank offers two physician loan programs tailored to meet the needs of new and existing physicians and dentists.
Residents, fellows, and new physicians are eligible for loans up to $1 million without a down payment. New physicians are anyone within the first year of their medical career.
These loans may be used to purchase or refinance a home. Established physicians and dentists can purchase or refinance a home up to $1 million without a down payment. Established physicians can also access loans up to $2 million without a down payment.
Both programs are available as standard fixed and adjustable-rate mortgages. Neither program requires PMI.
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5. First Merchants Bank
- BBB Grade: A+
- JD Power Score: 843
First Merchants Bank extends its physician loan program to the following medical professionals:
- Medical Doctor (MD)
- Doctor of Osteopathy (DO)
- Doctor of Dental Surgery (DDS)
- Doctor of Dental Medicine (DMD)
- Doctor of Pharmacy (PharmD)
- Doctor of Veterinary Medicine (DVM)
Loans may be used to purchase or rate/term refinance a primary residence or condo. Residents are eligible for up to 100% financing on loans up to $500,000, but they’ll need a fully executed employment contract to qualify.
Later career physicians can secure 100% financing on loans up to $1 million or 89% financing on loans up to $2 million. Fully financed loans do not include closing costs.
Student loan debt deferred 12 months or more will not be included in debt-to-income calculations. Gift funds can be applied to closing costs, down payment, or cash reserves, if necessary.
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6. Flagstar Bank
- BBB Grade: A-
- JD Power Score: 781
Flagstar Bank offers an inclusive professional loan program for high-earning professionals interested in purchasing or refinancing a home. It is open to qualified professionals within the first 10 years of their careers with the following specialties:
- Medical Doctor (MD)
- Doctor of Dental Surgery (DDS)
- Doctor of Dental Medicine (DMD)
- Doctor of Optometry (OD)
- Doctor of Ophthalmology (MD)
- Doctor of Pharmacy (PharmD)
- Doctor of Podiatric Medicine (DPM)
- Doctor of Osteopathy (DO)
- Physician Assistant (PA)
- Registered Nurse (RN)
- Nurse Anesthetist (CRNA)
- Nurse Practitioner (NP)
- Clinical Nurse Specialist
- ATP Pilot
- Certified Public Accountant (CPA)
- Attorney
- Veterinarian (DVM)
Borrowers will need a 720 minimum credit score to qualify for 100% financing on loans up to $1 million. Low down payment options are available on loans of up to $1.5 million. Interested party contributions are accepted.
All down payment options through this program waive PMI. It’s also important to note that all of Flagstar Bank’s professional loans are adjustable-rate mortgages.
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7. Huntington Bank
- BBB Grade: A+
- JD Power Score: 821
Huntington Bank opens its physician loan program to physicians with an MD, DO, DDS, DVMM, or DMD degree. Qualified medical professionals can borrow up to $1 million without a down payment. Loans up to $1.25 million will require a 5% down payment. Loans up to $2 million will require at least 10% down.
Borrowers will need to have proof of sufficient income or an acceptable employment contract that clearly specifies salary. Borrowers who use an employment contract to qualify will also need to have sufficient cash reserves.
Loans must be used to purchase or refinance a primary residence. Cash-out refinances are available, but they are limited to $250,000 cash while all other funds must be used to satisfy debt.
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8. KeyBank
- BBB Grade: A+
- JD Power Score: 809
KeyBank will provide up to $3.5 million in financing for the purchase or refinance of a single-family home, townhouse, or condominium.
Unlike many other programs, KeyBank will provide financing for primary and secondary homes, as long as they are both owner-occupied. Medical doctors and dentists with one of the following degrees can qualify:
- MD
- DO
- DPM
- DDS
- DMD
Cash-out and rate/term refinancing options are available. Fixed and variable interest rate products are also available so you can choose the option that best fits your long-term financial needs.
The bank provides a personalized experience to all borrowers, which can take a lot of the stress and confusion out of the home-buying process in Michigan.
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9. Northwest Bank
- BBB Grade: A+
- JD Power Score: 850
Medical doctors, doctors of osteopathy, podiatrists, dentists, and dental surgeons are eligible for special financing through Northwest Bank’s physician loan program. Residents are also welcome. Borrowers will need to have a minimum credit score of 700 to qualify.
The program has several down payment options, including zero money down. Loans up to $950,000 can be secured without a down payment. Loans up to $1.25 million will require at least 5% down and loans up to $1.5 million will require at least 10% down.
Other online information is scarce because home loans tend to be highly personalized. If you’re interested in a Northwest Bank physician mortgage, we recommend contacting a loan officer directly.
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10. US Bank
- BBB Grade: B+
- JD Power Score: 820
U.S. Bank’s physician loan program will provide up to $2.5 million in financing for medical doctors and doctors of osteopathy, including current residents and fellows. It will extend up to a maximum loan amount of $2.5 million to borrowers with a credit score of at least 710.
It does not offer a 100% financing option, but it does offer other competitive down payment options. Qualified medical professionals can borrow up to $1 million with just a 5% down payment. Loans up to $1.5 million will require 10% down and loans up to $2 million will require 15% down.
Borrowers who open a Platinum Checking Account can get a 0.25% lender credit up to $1,000, which can help reduce closing costs.
Student loans aren’t wholly excluded, but the program is flexible. Borrowers with deferred student loans will have 2% of their total loan balance used in DTI calculations. Borrowers on an income-driven repayment plan will have their actual monthly payment amount used.
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How Physician Mortgage Loans Work in Michigan
Physician mortgage loans in Michigan work similarly to other areas of the country. Lenders will often set their specific loan terms based on location, so you’ll always want to confirm the details of the loan program you’re interested in.
Availability
In general, physician mortgage loans are always open to medical doctors and doctors of osteopathy. Residents, interns, and fellows are often eligible as well.
Some programs expand their list of high-earning professionals to include dentists, veterinarians, podiatrists, attorneys, nurses, and physician assistants, so you should never count yourself out if one program doesn’t meet your needs.
Some programs will have an age limit, i.e. applicants must be within 10 years of completing residency to qualify, but other programs are open to all practicing physicians.
Down Payment Requirements
Down payment requirements will vary on the loan amount and credit approval, but the requirements are often less than conventional loan programs. Many programs offer down payment options between 0–15% of the home’s purchase price.
Private Mortgage Insurance
Physician mortgages don’t require private mortgage insurance, regardless of the down payment amount.
Type of Residence
Typically, physician loans are restricted to the purchase or refinance of a primary residence. Each program will specify the types of properties it will accept, but in general, single-family homes, condominiums, and townhouses are acceptable properties for physician loan financing.
Medical Student Loan Debt
Student loan debt is often excluded from debt-to-income calculations to make it easier for physicians with significant student loan debt to qualify.
Doctors are quicker on average to pay off their student loans, but they’re also more likely to access student loan forgiveness. As such, many lenders see them as lower risk for default.
In the event that student loan debt isn’t excluded, many underwriters will use a portion of the total student loan balance when calculating DTI.
Pros and Cons
Choosing a mortgage loan program is a big decision. Considering the pros and cons can help you choose the best physician loan in Michigan for your needs.
Pros
- Low down payment: Physician home loans have lower down payment requirements than other loan programs. In many cases, you can put as little as 0–5% of the purchase price down.
- No PMI: Doctor mortgage loans don’t require private mortgage insurance, which can save you thousands of dollars over the life of the loan.
- May exclude student loan debt: Many physician mortgage programs don’t include deferred student loan debt when calculating your debt-to-income ratio.
- Purchase with an employment contract: Because physician mortgage loans are designed for early-career medical professionals, you can often use a signed employment contract before you start work.
- Refinance your existing home: If you already own your home, you can use a physician home loan to rate/term or cash out refinance.
Cons
- Primary residence requirement: Many physician mortgage programs will only provide financing for a property you will use as your primary residence.
- High credit score requirement: You’ll need at least a 700 credit score to qualify for most physician loan programs, but you’ll likely need a higher score to qualify for 100% financing.
- Not all programs are open to all medical professionals: Some programs are only open to physicians and dentists, while other programs are more inclusive. You’ll need to read the fine print or ask a loan officer to confirm you qualify.
- Jumbo loan: Doctor mortgage loans are not beholden to the same loan amount limits as conventional loans, but they can leave you on the hook for large monthly payments if you’re not careful.
Frequently Asked Questions
Can you do a physician loan twice?
Yes, you can do a physician loan twice, but generally, you’ll only want to carry one physician loan at a time. Physician loans are often sizable loan amounts, so if you already have a mortgage, your debt-to-income ratio will likely be too high to qualify for an additional physician loan.
We recommend discussing your options with a loan officer or mortgage broker because every financial situation is unique.
Are physician loans fixed or variable?
Physician loans have fixed or variable interest rates. Your exact loan structure and interest rate will depend on your down payment, income, credit history, and other risk factors. You can get preapproved to find out the interest rate options available to you.
How much doctor loan can I get?
How much doctor loan you can get will depend on your income, credit history, and DTI ratio. In general, physician loans up to $750,000 can be secured without a down payment, but larger loan amounts will require at least some money down. It’s typical to see 5–10% down payment requirements for loans up to $1 million.
You may be able to borrow as much as $3.5 million with a lender like KeyBank.
Can I apply for a physician loan if I don’t have credit?
No, you can’t apply for a physician loan if you don’t have credit. Mortgages are a stricter approval threshold than auto, personal, or student loans, so you’ll need to have an established credit history.
You can contact a loan officer or financial advisor before you begin the home-buying process to find out what you need to do to qualify for a physician loan.
What is the interest rate of a physician loan?
The interest rate of a physician loan changes relative to the current market and other risk factors for the lender. You can check daily average interest rates through your preferred lender. You can also use online calculators to estimate your monthly payment with the current average interest rate.
As of March 2023, average interest rates for a 30-year fixed-rate mortgage are about 7%.
Ultimately, your exact interest rate will depend on the property you choose, your geographic location, your down payment, loan term, and other factors at the time you lock in your rate.
Who is a Physician Loan in Georgia Best For?
Physician home loans aren’t the best mortgage option for every situation, but it is an avenue worth considering on the quest to purchase your dream home. If any of the below situations resonate with you, you may be a great fit for a physician loan.
Physicians with considerable student loan debt
Many physicians have a couple hundred thousand dollars in student loan debt by the time they graduate with a degree. When you consider interest, it can seem like your monthly payments don’t even make a dent in this amount.
Conventional mortgage loans require a DTI ratio of less than 43%, but physician loans consider student loan debt differently. In many cases, deferred student loan debt is excluded entirely, but at other times, underwriters will use the income-driven repayment amount. In either case, physician loan DTI ratio calculations tend to be more lenient than other mortgage loans.
Self-employed veterinarians, dentists, and other private practice owners
Self-employed medical professionals, such as veterinarians, dentists, and primary care providers who own a private practice, may want to keep most of their money in their business, especially in the early stages.
You can qualify for a physician loan with an employment contract with clearly defined base income or tax returns. Choosing a physician loan can allow these professionals to put less money down and use that money to expand the practice.
Residents, fellows, interns, and other medical professionals with excellent credit scores
While physician loans are more lenient in some ways, the additional risk results in higher credit score requirements. If you’re hoping to shop around for the best rate, a 700 minimum credit score is recommended.
Early career physicians and other medical professionals with a strong credit history are in a better position to lock in lower interest rates and be given more favorable loan terms.
Medical professionals who don’t have enough saved for a 20% down payment and closing costs
Physician home loans are often open to other medical professionals. With the cost of living rising across the country and other recurring expenses, it can be difficult to squirrel away money for a down payment and closing costs for a conventional loan.
Physician loans can reduce the amount of cash medical professionals have to have on hand to purchase or refinance their homes, which can make it much more accessible to professionals from a variety of financial backgrounds.
Homeowners who want to refinance their primary residence
Physician loans can be used to cash out or rate/term refinance a primary residence you already own. If you’ve built significant equity in your home, you can take out a home equity line of credit to pay down debt or make home improvements without overleveraging your finances.
Rate/term refinances are also a good option if the interest rates have come down since you first purchased your home.
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