Best Physician Mortgage Loans in Missouri

Physician mortgage loans in Missouri may help doctors buy a house much faster than conventional financing allows.

The loan program has flexible underwriting guidelines for doctors and other medical professionals, including no down payment and flexible debt-to-income ratios.

Physician mortgage loans aren’t for everyone, though. Read on to learn how they work and which lenders offer the best options.

10 Best Missouri Physician Home Loan Lenders

Shopping for the best physician mortgage loan in Missouri is important to ensure you get the most competitive rates and terms.

Here are the top lenders in Missouri offering physician mortgage loans.

1. BMO Bank
2. Citizens Bank
3. Arvest Bank
4. Flagstar Bank
5. First National Bank of Omaha
6. Citizens Bank
7. Huntington Bank
8. Evolve Bank & Trust
9. KeyBank
10. Regions Bank
11. US Bank

1. BMO Bank

• BBB Grade: A+
• JD Power Score: 805

BMO Bank offers physician mortgage loans in Missouri to practicing doctors, residents, and fellows. You must be within the first ten years of your practice to qualify. However, if you still need the program after being established for ten years, you might qualify with a 10% down payment.

BMO Bank offers purchase and refinance options for doctors, and the program works on single-family condos, townhomes, and 1 to 2-unit properties.

You will need a down payment, but only 5% if you borrow less than $1.5 million. If you need to borrow $1.5 to $2 million, you’ll need a 10% down payment.

BMO Bank offers its loan program to the following doctors:

• MD
• DO
• DDS
• DMD

BMO Bank excludes student loan debt from your DTI to make it easier to qualify, and you can qualify up to 90 days before starting a position if you have an employment contract. 

2. Citizens Bank

• BBB Grade: A+
• JD Power Score: 818

Citizens Bank offers physician loans in Missouri, but only after you are fully practicing and are done with your fellowship. The program is open to doctors within the first ten years of their practice.

Most doctors need 5% to 10% down when they borrow a loan from Citizens Bank, and the program is open to the following doctors:

• MD
• DO
• DDS
• DMD

Citizens Bank offers fixed and adjustable-rate loans for doctors in Missouri, and you can close your loan up to 90 days before starting a position as long as you have an employment contract in place.

3. Arvest Bank

• BBB Grade: A+
• JD Power Score: N/A

Arvest Bank offers physicians in Missouri a physician loan for new and existing doctors. The program is open as soon as you’re in your residency and lasts many years into your practice.

Arvest offers flexible guidelines regarding down payments, allowing many doctors to secure 100% financing. In addition, they allow you to roll some of the loan’s closing costs into the loan, allowing up to a 103% loan-to-value ratio.

Arvest, like most banks, does not charge PMI on its physician loans, and they have flexible underwriting guidelines, making it easy for medical professionals in Missouri to get the necessary financing.

4. Flagstar Bank

• BBB Grade: A-
• JD Power Score: 542

Flagstar Bank offers a professional loan program that includes doctors and other medical professionals. You must be within the first ten years of your career and never owned a home before.

The Flagstar Bank physician loan program is available on most home types, but it must be your primary residence (the place you live).

Flagstar doesn’t require a downpayment on loans up to $1 million, but there’s a catch. You must have at least a 720 credit score. Also, if you borrow $1 million to $1.5 million, you must make a small down payment.

Flagstar Bank loans also only offer adjustable rates, but they are competitive compared to what other lenders offer. Also, they let interested parties help with contributions, unlike most loan programs.

5. First National Bank of Omaha

• BBB Grade: A+
• JD Power Score: 847

The First National Bank of Omaha offers physician loans in Missouri with attractive terms for doctors and other medical professionals. You can secure a physician loan at FNBO if you are any of the following:

• MD
• DO
• DVM
• DDS
• DMD
• NP
• PA
• CRNA

FNBO requires credit scores of at least 700, and you can use the program to purchase or refinance a home.

6. Citizens Bank

• BBB Grade: A+
• JD Power Score: 818

Citizens Bank has a great physician loan program in Missouri, but it is only available to doctors already practicing and within their first ten years. It’s not open to fellows or residents.

Citizens Bank offers low down payment options of 5% to 10%, depending on how much you borrow, and the program is open to the following medical professionals:

• MD
• DO
• DDS
• DMD

With Citizens Bank, you can close your loan with an employment contract as long as your start date is within 90 days, and most borrowers can choose a fixed or adjustable-rate loan.

7. Huntington Bank

• BBB Grade: A+
• JD Power Score: 821

Huntington Bank offers a physician loan program for doctors and dentists for purchases and refinances. Huntington Bank has some stricter requirements, including the need for cash reserves, but they have flexible down payment requirements.

You don’t need a down payment if you borrow up to $1 million, and only 5% down if you need up to $1.25 million and 10% on up to $2 million.

The Huntington Bank physician loan program is available to the following doctors:

• MD
• DO
• DMD
• DVM
• DDS

Huntington Bank offers fixed and adjustable-rate loans for physicians, and you can close before you start your position if you have an employment contract.

8. Evolve Bank & Trust

• BBB Grade: A+
• JD Power Score: N/A

Evolve Bank & Trust offers a physician loan program for many medical professionals, with relaxed underwriting guidelines.

The program is available on any property type, such as single-family, townhomes, and condos. You can also use it to buy a 1 to 4-unit property; however, you’ll need a higher credit score to qualify for the loan.

Evolve offers loans up to $2 million to those who qualify, and the program is open to the following medical professionals:

• MD
• DO
• DDS
• DMD
• Nurse
• Pharmacist

Evolve isn’t as well known as other banks on this list, but their program is flexible and often works well for doctors who’ve opened their own practice but are still fairly new to the industry.

9. KeyBank

• BBB Grade: A+
• JD Power Score: 794

KeyBank offers physician loans in Missouri on primary residences and vacation and investment homes. This is unlike most other lenders on this list. KeyBank is also more forgiving with its loan amounts, allowing much higher loan amounts, and medical professionals can use the loan for a purchase or refinance.

The largest distinction between KeyBank and other lenders on this list is the loan amount, as KeyBank loans up to $3.5 million if you qualify. Most lenders only offer up to $2 million or even $1.5 million.

KeyBank offers its program on single-family homes, PUDs, and condos, and it’s open to the following medical professionals:

• MD
• DO
• DPM
• DDS
• DMD

KeyBank offers no down payment options on some loans, and you can choose from fixed and adjustable-rate loans.

10. Regions Bank

• BBB Grade: B+
• JD Power Score: 697

Regions Bank offers a physician loan program in Missouri, but they have lower loan limits. Many borrowers can secure financing with no down payment, but the property must be your primary residence.

Borrowers can apply for a loan of up to $750,000 with no money down or 5% down on up to $1 million. The program is open to the following doctors:

• MD
• DO
• DMD
• DDS

Regions Bank doesn’t charge PMI and allows doctors to close the loan with an employment contract if work starts within 90 days.

11. US Bank

• BBB Grade: B+
• JD Power Score: 807

US Bank offers a physician loan program only to doctors, not dentists. They also require that all borrowers have a down payment, although the requirements are low, including the following:

• 5% on $1 million
• 10% on $1.5 million
• 15% on $2 million

Only MDs and DOs qualify for the program, but you can apply as a resident or fellow.

About Physician Mortgage Loans in Missouri

Physician mortgage loans in Missouri help physicians who recently began their careers secure mortgage financing. Doctors typically leave medical school with $200k+ in student loan debt, making it difficult to have enough capital for a down payment on a home.

The high student loan debt also makes it challenging to qualify for financing since conventional loans require a low debt-to-income ratio.

Physician mortgage loans have relaxed guidelines, including no down payment in some cases. In addition, no lender charges PMI on doctor loans in Missouri, and many lenders exclude or lower the student debt they use to calculate debt-to-income ratios.

How They Work

Physician mortgage loans are loans only for medical professionals. Some lenders only allow MDs and DOs to use the program; others open it to other medical professionals, including nurse practitioners, pharmacists, and surgeons.

Each lender sets the requirements for the loan. For example, one lender may require a 740 credit score and a 10% down payment on loans up to $1 million, and another may allow 700 credit scores and not require any money down on loans up to $1 million, but a 10% down payment on loans up to $1.5 million.

Because lenders create guidelines themselves, the requirements vary by lender. It’s best to look around and see which lender offers the most competitive terms for your situation.

Qualifications

As we said, each lender has different qualifying requirements, but in general, here’s what you can expect:

• 720+ credit score (some may allow slightly lower scores)
• 43% or lower DTI, but most lenders exclude student loan debt or reduce the total payment used to calculate your DTI
• Proof of employment as a doctor, resident, or fellow or an employment contract for employment as a doctor that begins within 90 days
• Proof of assets for any required down payments or mortgage reserves that the lender requires

Eligible Physicians

Each lender opens its program to different doctors. Some have loose requirements and open them to any type of doctor or medical professional; others restrict it to MDs, DOs, DDSs, and DMDs.

Pros and Cons of Physician Mortgage Loans in Missouri

All mortgage loans have pros and cons. Understanding what they offer is important to help you choose.

Pros

• Relaxed down payment guidelines, with some offering no down payment
• Many lenders exclude student debt from your DTI
• No PMI, even with no down payment
• Many lenders allow you to close before you start your position

Cons

• Most physician loans have higher interest rates
• It’s easy to borrow more than you can afford with the exclusion of student loan debt
• Most lenders only lend physician loans on primary residences
• The programs are restricted to certain types of doctors

Frequently Asked Questions

Physician mortgage loans in Missouri are a great way to get the financing you need. Here are some more common questions medical professionals have about them.

Are Conventional Loans the Same as Physician Mortgage Loans?

Conventional loans differ from physician loans in a couple of ways. First, they are backed by Fannie Mae and Freddie Mac and must meet their requirements. Second, conventional loans have lower loan amounts and don’t exclude student loan debt from your DTI to qualify.

Physician mortgage loans have more flexible guidelines, but the higher loan limits could put you at risk of borrowing more than you can afford.

Do Physicians Receive Better Interest Rates on Loans?

Physicians receive higher interest rates on physician mortgage loans because lenders take a big risk with them. There isn’t a government entity guaranteeing the loan. Instead, they fund and manage it themselves. This puts them at risk of loss, so they usually charge higher interest rates to compensate.

How Many Times Can Physicians Take Out a Physicians Mortgage Loan?

Physician mortgage loans are available as many times as you qualify, but most are only eligible for primary residences. So you’d only need an additional physician loan if you sell your primary residence and buy another. However, most lenders only offer the program during the first ten years of your career.

Can You Refinance a Physicians Mortgage Loan?

Most physician loans don’t have a prepayment penalty, so you can refinance whenever you want. However, you might not be eligible for another physician loan, as many lenders only offer the program for purchases, not refinances.

Do Physicians Need a Specific Credit Score to Qualify?

Every lender has different requirements; however, most lenders want a credit score of at least 720 to qualify. Those that allow lower credit scores may require a larger down payment or other qualifying factors.

Should Physicians Take Out a Large Mortgage Loan and Invest Some of the Money?

Some physicians find it more beneficial to invest some money and leverage the investment in their home with a mortgage. To determine if this makes sense, look at the big picture. Determine how much the mortgage loan will cost over the entire term and compare it to your potential earnings on the investment to decide.

Are Physician Loans a Good or a Bad Idea?

Physician loans can be good in the right situation. However, they have downsides too. For example, it’s bad if you borrow more than you can afford or buy a house bigger than you need because the loan program is available.

It’s best for physicians ready to settle down but whose student loan debt prevents them from qualifying for a conventional loan.

Should You Put Money Down on a Physician Mortgage Loan?

You should consider making a down payment on a physician mortgage if you can afford it. Talk to your financial advisor about your options, but a larger down payment may reduce your interest rate or closing costs, making the loan more affordable.

Can You Get a Physician Loan With High DTI or Student Loans?

Physician loans are made for doctors with high DTIs because of student loans. However, many

lenders exclude student loans from the DTI to make qualifying easier.

Should You Get a Physician Mortgage Loan in Missouri?

Consider your mortgage options carefully when deciding whether to borrow a physician mortgage loan. They are easier to qualify for than conventional loans but have their downsides.

The key is not to get in over your head and only borrow what you can afford.

Most physician mortgage loans in Missouri are for primary residences and don’t require a down payment or charge PMI. Look at the big picture of the loan and its costs before deciding if it’s right for you.

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