If a move or refinance is in your future, then securing a physician mortgage loan in Montana may be the perfect tool for navigating the housing market in Big Sky Country.
The state has 2,400 practicing physicians serving its more than 1 million residents. The lower population density and sweeping skies can be a relief for big-city medical professionals looking for a change or a return to home for those seeking the slowness of pace in the Great American West.
The wide-open spaces, rivers, and lakes make it one of the most scenic states in the country, which can make it a compelling place to purchase your dream home and establish long-term roots.
Working with a lender who understands the ins and outs of doctor home loans in Montana is non-negotiable. You can get pre-qualified with lenders you trust, which will provide you with a concrete plan to work with as you start your house-hunting journey. It will also allow you to compare rates and loan terms.
If you’re ready to find the best physician mortgage loans in Montana for you and your family, then trust one of these lenders to help you move forward.
7 Best Montana Physician Home Loan Lenders
Here are the top physician mortgage loan lenders in MT:
Discover The Best Lenders in Montana 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 is open to residents, fellows, and licensed medical doctors, including the following degrees:
- MD
- DDS
- DMD
- DO
The program will provide 95% financing on loans up to $1.5 million or 90% financing on loans up to $2 million.
The program doesn’t have an age limit, but medical professionals who have been practicing for 10 years or more will be limited to 90% financing, which means a down payment equal to 10% of the home’s purchase price will be required.
All programs waive private mortgage insurance, which can save borrowers thousands of dollars over the loan term.
Loans may be used to purchase or rate/term refinance a primary residence. The program will provide financing for 1-2 unit properties, single-family homes, condominiums, and townhomes, but it does not include rental or investment properties.
It’s also flexible when calculating the debt-to-income ratio and considering income history, but borrowers must be able to provide an acceptable employment contract dated within 90 days of closing.
Borrowers may also be eligible for a $500 closing cost discount when they open an eligible BMO Bank account and enroll in AutoPay for mortgage payments.
2. Citizens Bank
- BBB Grade: A+
- JD Power Score: 818
Citizens Bank’s physician mortgage loan program will extend up to $1.5 million to qualified medical doctors and dentists, including residents and fellows. Loans may be used to build a new home, otherwise known as a construction loan, refinance a home you already own, or purchase an existing home.
Student loan debt deferred for more than 12 months won’t be used to calculate DTI ratio or underwriting will use the reduced monthly payment for borrowers on an income-driven repayment plan.
Borrowers have the following down payment options, none of which require PMI:
- 5% on loans up to $850,000
- 10% on loans up to $1 million
- 15% on loans up to $1.5 million
Borrowers may be eligible for additional discounts if they open an account with Citizens Bank.
3. First National Bank of Omaha
- BBB Grade: A+
- JD Power Score: 847
First National Bank of Omaha (FNBO) will provide unique financing options to Montana residents interested in purchasing a single-family owner-occupied property through its Physician’s Mortgage Loan Program.
The Physician’s Mortgage Loan Program will lend up to $1.5 million, but borrowers can pursue 100% financing for loans up to $850,000. As is standard for physician loan programs, FNBO does not require PMI.
The lender will assign each applicant a dedicated loan officer who will explain each step of the process, help them gather the necessary documents for approval, and ensure seamless communication.
This personalized experience also allows underwriters to be flexible when considering income and creditworthiness. The program is also open to H1-B visa holders and borrowers who have not yet started working. FNBO will work with applicants who have future-dated employment contracts that will start within 90 days of closing.
4. Flagstar Bank
- BBB Grade: NR
- JD Power Score: 781
Flagstar Bank offers one of the most inclusive Professional Loan Programs on the market. It is open to the following high-income earners:
- ATP Pilot
- Attorney
- Certified Public Accountant (CPA)
- Clinical Nurse Specialist
- Doctor of Dental Medicine (DMD)
- Doctor of Dental Surgery (DDS)
- Doctor of Ophthalmology (MD)
- Doctor of Optometry (OD)
- Doctor of Osteopathy (DO)
- Doctor of Pharmacy (PharmD)
- Doctor of Podiatric Medicine (DPM)
- Medical Doctor (MD)
- Medical Resident (Educational License)
- Nurse Anesthetist (CRNA)
- Nurse Practitioner (NP)
- Physician Assistant (PA)
- Registered Nurse (RN)
- Veterinarian (DVM)
While it is more inclusive of other professions, Flagstar Bank does have a strict credit score requirement and age limit. All borrowers must be within 10 years of beginning their careers. They must also have a 720 minimum credit score to qualify for 100% financing.
Qualified borrowers can secure up to $1 million without a down payment or up to $1.5 million with a low down payment. PMI is not required. However, Flagstar Bank’s Professional Loans are always structured as adjustable-rate mortgages (ARMs).
This structure typically starts with a low introductory rate that eventually expires and resets relative to the loan’s index. ARMs can give early career professionals access to competitive interest rates and may not be a problem if the borrower intends to refinance down the line.
With that said, ARMs can make it difficult to budget for future mortgage payments as they may change over time.
Interested party contributions are also accepted, which can be great for borrowers who don’t have the savings to cover all the mortgage fees and closing costs.
5. Huntington Bank
- BBB Grade: A+
- JD Power Score: 821
Huntington Bank extends its physician mortgage loans to doctors with the following degrees:
- MD
- DO
- DMD
- DVM
- DDS
Borrowers must be able to provide proof of sufficient income or an active employment contract. The lender also has minimum reserve requirements, but these requirements will vary based on the loan amount.
The program will provide 100% financing on loans up to $1 million, 95% financing on loans up to $1.25 million, and 90% financing on loans up to $2 million. Borrowers will have financing options presented to them after the lender has the opportunity to review their credit profile and loan-to-value.
Loans may be used to refinance an existing property, but cash-out refinances are limited to $2 million overall, but only $250,000 of that may be taken as cash. All other funds must go toward paying off debt.
The program does not have prepayment penalties or PMI requirements. Fixed and variable interest rate options are available.
6. KeyBank
- BBB Grade: A+
- JD Power Score: 794
KeyBank’s Medical Professional Mortgage Program is open to residents, fellows, and physicians within the following designations:
- MD
- DO
- DPM
- DDS
- DMD
The program will provide a maximum of $3.5 million for the purchase or refinance of an attached or detached single-family home, condominium, or townhome.
The lowest down payment option offered is 5% of the purchase price, but the exact financing options available will come down to each borrower’s unique financial situation. Like other programs, PMI is waived.
Fixed and variable interest rate options are available. KeyBank’s Medical Professional Mortgage Program is unique in that it’s the only lender on this list that provides financing for primary residences and second homes.
The program provides highly personalized service to help all borrowers find the financing option that works best for their goals and budget.
7. U.S. Bank
- BBB Grade: A-
- JD Power Score: 820
U.S. Bank limits its physician mortgage program to medical doctors and doctors of osteopathic medicine, which makes it much more exclusive than other physician loan programs on this list. However, residents and fellows are allowed, so it’s not unreasonably restrictive.
Borrowers may qualify for a $2.5 million maximum loan amount. Loans up to $1 million require a 5% down payment. Loans up to $1.5 million require a 10% down payment and loans up to $2 million require a 15% down payment.
Like other physician mortgage loans, U.S. Bank is flexible when calculating DTI ratio. It will use the borrower’s actual monthly payment for those on an income-driven repayment plan or 2% of the total loan balance for those with deferred loans.
Borrowers who open a platinum checking account can receive a 0.25% lender credit up to $1,000, which can reduce closing costs and other fees.
Borrowers will need a minimum 710 credit score to qualify.
How Physician Mortgage Loans Work in Montana
Physician mortgage loans in Montana don’t work differently in Montana than they do in other areas of the country. Montana physician loans are tailored mortgage programs designed to help medical doctors purchase new homes or refinance their existing homes without needing to meet the terms of a conventional loan.
Physician mortgage lenders understand that advanced degree medical professionals graduate with the cost of medical school hanging over their heads. Mounting student loan debt is often seen as a barrier to homeownership, but physician mortgage underwriters are flexible in this area.
Flexibility with Student Loan Debt
In many cases, deferred student loan debt may not be used to determine creditworthiness. In other cases, a portion of student loan debt may be used to calculate the DTI ratio. This flexibility makes physician mortgage loans easier to qualify for than conventional mortgages.
Flexibility with Employment History
Physician mortgage loans will also extend home loans to physicians starting new jobs. Many medical residents and new physicians have to relocate to continue their careers.
Physician mortgage loan providers want to make homeownership accessible to these folks, so lenders are often willing to work with physicians who can provide a signed employment contract and a start date within 90 days of closing.
Eligibility Requirements
Every program will have its own eligibility requirements. For example, nearly all programs will be open to medical doctors and doctors of osteopathic medicine, but only some programs will include veterinarians and dentists.
Low to No Down Payment Options
Physician loan programs also intend to eliminate some of the down payment barriers early career medical professionals face. Most programs will provide 85–100% financing for the purchase of a primary residence, but borrowers will still need to have sufficient savings for closing costs.
For borrowers with decent credit scores and advanced medical degrees, it can be worth it to compare the costs of a physician loan to an FHA loan. Shopping around can help first-time home buyers find the best rate.
Higher Borrowing Limits
Physician loans also aren’t subject to the same loan limits as conforming loans. Qualifying borrowers can access higher loan amounts than they would be able to if they applied for a conventional mortgage.
No Private Mortgage Insurance
One of the biggest benefits of physician mortgage loans is the lack of private mortgage insurance. While conventional mortgages will often require PMI until homeowners reach 20% equity in their homes, physician mortgage loans never require it. Waiving this requirement can save medical professionals thousands over the life of the loan.
Property Restrictions
Unlike conventional loans, physician mortgage loans will have property restrictions. For example, the loan terms may specify financing is only available for single-family homes, townhouses, or condominiums. Physician loans are also limited to the purchase or refinance of a primary residence.
Credit Score Requirements
Physician mortgage loans are especially strict in regard to credit scores. Borrowers will need a minimum credit score of 700 to qualify in many cases, but some mortgage lenders will work with lower credit scores if you can put more money down.
Pros and Cons
Weighing the pros and cons of physician mortgage loans in Montana can help you make the best decision for your financial future while you navigate the home-buying process:
Pros
- Low down payment mortgage options: Physician mortgage loans in Montana will often finance 85–100% of the home’s purchase price, which can make homeownership much more accessible to borrowers who haven’t had the ability to save much.
- Buy before you start a new job: Many doctor mortgage loans will accept fully executed employment contracts as proof of earning potential as long as you will start working within 90 days of closing.
- No private mortgage insurance: Private mortgage insurance isn’t required when you secure a physician home loan.
- Underwriting may be more lenient: Because physicians and other high-income earners often graduate with significant student loan debt, doctor loan programs are more lenient when they calculate the debt-to-income ratio.
- Refinancing options: Doctor mortgage loans may be used to refinance a property you already own, which can allow you to renegotiate your interest rate or leverage your equity in the home.
- Not subject to conventional loan limits: Doctor mortgage loans will lend millions of dollars, which can make it easier for physicians to purchase their dream homes early in their careers.
Cons
- Higher credit score: Physician mortgage loans typically require a 700 minimum credit score, while other home loan programs will work with borrowers with scores in the 600s.
- Higher interest rates: Many doctor mortgages are structured as adjustable-rate mortgages, which means the interest rate will reset to a new––often higher––rate after the initial introductory offer expires.
- Primary residence requirement: Physician mortgage loans are designed for the purchase or refinancing of an owner-occupied residence, meaning they usually can’t be used for a second home or investment property.
- Not offered by all mortgage lenders: Because doctor mortgages are specialty loans, not all mortgage lenders are equipped to offer them. As such, you may have to shop around for a lender that meets your needs.
Frequently Asked Questions
How do you apply for a physician mortgage loan in Montana?
You can apply for a physician mortgage loan in Montana by reaching out to a mortgage broker, making an appointment with a loan officer at a bank or credit union, or starting the preapproval process online.
Not all lenders advertise physician mortgage loans, so you’ll always want to inquire about the option when you’re shopping around. When you apply, you’ll be asked to provide identification, such as your driver’s license, proof of income, and information about your current debts.
Be prepared to provide pay stubs, W-2s, and at least two months of bank and credit card statements. If you haven’t yet started your job, you may be able to qualify with a future-dated employment contract that outlines your base salary clearly.
What is the average monthly payment for a physician loan?
The average monthly payment for a physician loan depends on the down payment, loan amount, taxes, insurance, and interest rate required for each property. As such, the average monthly payment for a physician loan is incalculable without significant data.
Your lender should be able to work with you to estimate your monthly payment once you’ve been preapproved for a loan and have signed a purchase agreement.
Do doctors get better mortgage rates in Montana?
No, doctors don’t get better mortgage rates in Montana, but they do get access to highly specialized loan programs with qualifying terms designed to fit their current and future financial situation.
Physicians and other advanced degree professionals may have an easier time qualifying for a doctor mortgage loan because banks see them as less likely to default on their loans due to their high earning potential.
Physicians and other high earners may also qualify for student loan forgiveness after ten years of public service, which allows lenders to overlook student loan debt in many cases.
Is a physician loan the same as a conventional loan?
No, a physician loan isn’t the same as a conventional loan. Physician loans, also known as doctor mortgages, are custom loan programs designed to meet the needs of medical professionals and they aren’t open to the general public.
Some loan programs even have an age limit, such as applicants must be within 10 years of beginning their careers to qualify.
Conventional loans aren’t subject to these age limits or professional designations, but they will have larger down payment requirements and stricter employment history guidelines.
Who is a Physician Loan in Montana Best For?
We’ve prepared a few notable situations that most often benefit from physician mortgage loans in Montana.
Seeing examples of other individuals who have benefited from physician mortgage loans in Montana can give you the confidence you need to decide if it’s the right home loan option for you.
Medical residents relocating to Montana for work
Residency programs often require participants to relocate. If you’re looking at moving to Montana for work, chances are it will cost a small fortune to relocate, especially if you have a family, multiple cars, or pets in the picture.
Physician loans can make it possible to purchase a home and set down roots when relocating, so you don’t have to spend time searching for a place to live when you’re settling into your new job.
Private practice owners
Private practice owners are small business operators and small businesses have significant expenses. Many physician loan programs will work with self-employed veterinarians, dentists, and primary care physicians who can provide two years of tax returns.
Physician loans are advantageous for private practice owners because it allows them to keep money that would otherwise go toward a down payment in the business. Keeping money in the business allows it to expand, grow, and better serve the community.
First-time home buyers with high income and excellent credit
Many physician loan programs aren’t exclusive to medical professionals, but it’s important to discuss your options with a loan officer and do your own research to find the best program for your needs.
FHA loans are a common consideration for first-time home buyers, but highly educated professionals with substantial income potential and excellent credit have other options.
Like FHA loans, physician loans require a minimal down payment. With that said, physician loans may provide as much as 100% financing for the purchase or refinance of a primary residence.
Physician loans don’t have additional fees or stringent property requirements, which can make them more flexible than FHA loans.
Medical professionals within the first 10 years of their career who can’t cover a down payment, closing costs, and cash reserves
Advanced degree nurses, physician assistants, and other medical professionals who are still within the first 10 years of their career can take advantage of a physician loan if they have savings, but not enough to cover the entirety of the down payment, closing costs, or cash reserves.
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