A physician mortgage loan in New York can get you even closer to your dream of owning real estate in the Empire State.
You’ll become one of nearly 97,400 physicians who choose to practice there, working alongside gifted medical professionals at prestigious residency programs in Albany, Rochester, and every borough in the city.
New York continues to be one of the most populous states thanks to New York City, but the state offers diverse populations and a variety of scenery.
Working with a lender who specializes in doctor home loans in New York can help you throughout the entire home-buying process, whether you are a first-time homebuyer or you’re relocating your primary residence to continue your career.
9 Best New York Physician Home Loan Lenders
Here are the top physician mortgage loan lenders in NY:
- Berkshire Bank
- Citizens Bank
- Evolve Bank & Trust
- First National bank
- Flagstar bank
- Northwest Bank
- TD Bank
- US Bank
Discover The Best Lenders in New York
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. Berkshire Bank
- BBB Grade: A+
- JD Power Score: N/A
Berkshire Bank offers a suite of physician loan products with various down payment options. If you have a credit score of at least 700, you could be eligible for any of the following:
- Zero down, 100% financing up to $1 million
- 5% down, 95% financing up to $1.25 million
- 10% down, 90% financing up to $2 million
Berkshire Bank also doesn’t consider student loan debt if you’re in deferment. Medical doctors, podiatrists, doctors of osteopathy, dentists, oral surgeons, and veterinarians are included as long as you have completed your training within the last 10 years.
You also must be practicing, research and academic doctors are not eligible for the program.
2. Citizens Bank
- BBB Grade: A+
- JD Power Score: 818
Citizens Bank’s Doctor Loan is designed for Doctors of Medicine (MD), Doctors of Osteopathic Medicine (DO), Doctors of Dental Surgery (DDS), and Doctors of Dental Medicine (DMD).
Attending physicians and other practicing doctors can put just 5% down on loans up to $850,000 and 11% down on loans up to $1,000,000.
Medical residents, fellows, and interns are limited to a loan amount of $600,000. Unlicensed medical professionals can secure up to $400,000.
The Doctor Loan is only available for physicians who plan to use their property as their primary residence. There are also restrictions on the type of property you can purchase.
For example, you can’t purchase a detached single-family home (not a problem if you live in New York City) but you can purchase a condo or a home in a planned unit development.
3. Evolve Bank & Trust
- BBB Grade: A+
- JD Power Score: N/A
Evolve Bank & Trust calls its physician loan program Physicians Capital. Medical Doctors, Dentists, Dental Surgeons, Veterinarians, Pharmacists (RPH), Nurse Anesthetists, Nurse Practitioners (NP), Physician’s Assistants (PA), Optometrist (OD) Chiropractors (DC), Podiatrists (DPM) are considered eligible.
- 100% financing on loans of up to $1,000,000
- 95% financing on loans of up to $1,250,000
- 90% financing on loans of up to $1,500,000
- 85% financing on loans of up to $2,000,000
While the large loan amount can leave you on the hook for high mortgage payments, private mortgage insurance (PMI) is not required and you can close on a house within 60 days of your employment start date.
4. First National Bank
- BBB Grade: A+
- JD Power Score: 801
First National Bank’s physician loan program offers up to 100% financing on loans up to $1 million with no PMI requirement. Fixed and adjustable rate options are available to meet your needs.
Unlike many other physician home loans, First National Bank provides financing for second homes and vacation homes, as long as they won’t be used as an investment property.
The physician home loan program can be used to purchased a new construction property, an existing property, or refinance a property you already owned.
Its private bankers will work with you to gather the proper documentation to apply for your loan and the underwriting process is designed to be flexible by considering your unique circumstances.
5. Flagstar Bank
- BBB Grade: A+
- JD Power Score: 781
Flagstar Bank’s physician loan program provides up to 100% financing on loans up to $1 million and 95% financing on loans up to $1.5 million.
Residents, fellows, and other professionals with the following degrees are invited to apply:
- Clinical nurse specialists
- ATP pilots
Flagstar Bank is also available for professionals with H1-B visas or green cards. It’s also worth noting that Flagstar Bank’s physician loan program only offers adjustable-rate mortgages, which means your payment can fluctuate over time.
- BBB Grade: A+
- JD Power Score: 794
KeyBank’s Medical Professional Mortgage program is available to interns, residents, fellows, doctors, dentists, clinical professors, researchers, and managing physicians with a current license and a degree of Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Podiatric Medicine (DPM), Doctor of Dental Surgery (DDS), or Doctor of Dental Medicine (DMD).
PMI is not required. Borrowers can finance up to $3.5 million for an attached or detached single-family home, condo or planned unit development.
The program allows physicians to purchase a primary residence or a second home. Fixed and variable interest rates are available.
7. Northwest Bank
- BBB Grade: A+
- JD Power Score: 850
Physicians, podiatrists, and dentists (including residents and fellows) can finance up to $950,000 with 0% down, up to $1.25 million with 5% down, and up to $1.5 million with 10% down with Northwest Bank’s Physician Loan program.
It’s not clear if new construction homes are eligible for the program. Student loan debt is excluded from consideration, which can make this program particularly attractive for residents, fellows, and practicing physicians with very high student loan debt.
8. TD Bank
- BBB Grade: A
- JD Power Score: 836
TD Bank’s Medical Professional Mortgages can be used to purchase single-family homes, condos, properties in planned unit developments, and in some cases, co-ops. Fixed and adjustable rate loan progrates are available.
Underwriters use the percentage of physicians’ monthly payments relative to their income to calculate debt-to-income ratio and PMI is not required, which may allow for lower monthly payments than conventional loans.
The Medical Professional Mortgage program offers the following down payment options:
- Up to $750,000 for 0% down
- Up to $1,250,000 for 5% down
- Up to $1,500,00 for $10.01%
New employment contracts are accepted as proof of earning potential.
9. US Bank
- BBB Grade: B+
- JD Power Score: 807
U.S. Bank provides up to $2.5 million in financing for M.D.s, D.O.s, and J.D.s. Compared to other programs, U.S. Bank’s physician mortgages have a shorter list of eligible degrees.
Borrowers who open a platinum checking account with the bank can receive up to a $1,000 discount on closing costs. Construction loans are not available.
Student loan debt is considered based on monthly income-driven repayment or 2% of the total balance for those in deferment.
How Physician Mortgage Loans Work in New York
Physician mortgage loans in New York don’t operate much differently than in other areas of the country, but many doctor loans available in other states aren’t available in New York according to the disclosures.
Your lending officer will be able to confirm the loan program you’re interested in is available in your state or set you up with a doctor loan offered in New York.
In general, physician loans will require you to hold one of the following degrees:
- Advanced Degree Nurses (NP, DNP, RN)
- Chiropractors (DC)
- Dentists (DDS or DMD)
- Medical doctors (MD or DO)
- Optometrists (OD)
- Pharmacists (PharmD)
- Physical therapists and occupational therapists
- Physician Assistants (PA)
- Podiatrists (DPM)
- Veterinarians (DVM)
Doctor mortgages are designed to be attractive to medical residents and other high-earning professionals because they are seen as less likely to default on their loans.
Some of the laxer requirements of physician loans include:
- Low or no down payment
- No PMI
- Transcripts and employment contracts accepted as proof of earning potential
A physician loan may be right for you if you’re a doctor interested in homeownership in NY, but you don’t have the cash on hand or the employment history to satisfy conventional loan requirements.
To begin the process, your loan officer will request the following:
- An accounting of your present personal debt, including credit cards and student loans
- Employment contract with a clear start date
- Medical license
- Past tax returns
- Two to three months of bank statements, including checking and savings accounts
- Your social security number
Pros & Cons
There are upsides and downsides to any major life decision. We’ve prepared a few notable pros and cons of physician mortgage loans in New York so you can make an informed choice.
- Adjusted debt-to-income ratio: Because lenders know that doctors have a lot of student loan debt from medical school, many will be more lenient about debt-to-income ratio requirements.
- Low down payment: Compared to conventional loans, physician loans require lower down payments. In some cases, 100% financing is available.
- No PMI: Physician mortgage loans typically do not require private mortgage insurance, which can help reduce monthly loan payments.
- Personalized product: Many mortgage lenders will work with physicians to find a mortgage loan tailored to their needs.
- Purchase with employment contract: Many doctor loans will allow medical residents to purchase homes before they start their jobs if they can provide an employment contract as proof of earning potential.
- Closing costs: Even with 100% financing, borrowers will still be required to pay closing costs before settling on the home.
- Interest rates: Physician loans will often have higher interest rates than conventional loans due to the smaller down payment.
- Jumbo loan: Many doctor loans exceed the maximum loan amount set by the Federal Housing Finance Agency, which can lead to physicians purchasing more house than they can reasonably afford.
- Must be your primary residence: With a few exceptions, it’s typical for physician mortgages to reserve financing for owner-occupied properties.
- Zero equity: When doctors finance 100% of their home purchase, they start out with zero home equity. Building equity takes years of payments. Without equity, doctors who relocate for future jobs may have to sell their homes at a loss.
Frequently Asked Questions
Can a doctor get a physician loan with bad credit in New York?
No, a doctor can’t get a physician loan with bad credit in New York. In general, physician loans require qualifying applicants to have a credit score of at least 680.
If your credit score is below 669, you should take steps to improve your credit before applying for a physician loan.
VA loans don’t have a minimum credit score requirement because lenders are required to look at the entire loan profile before qualifying or disqualifying applicants.
FHA loans are another worthwhile consideration as their minimum credit score requirement is 580.
However higher credit scores will result in more favorable loan terms.
What can you do to make a physician loan more affordable?
There are a few things you can do to make a physician loan more affordable:
- Refinance: If you purchased your home when interest rates were high, you can consider refinancing to take advantage of lower interest rates. You can also switch from an adjustable-rate mortgage to a fixed-rate mortgage. Refinancing can also reduce your monthly payments by considering your current loan balance. For example, if you’ve paid $40,000 over several years and your original loan was $300,000 over 30 years, your current loan balance is $260,0000. Refinancing would reduce your mortgage payments if you chose a 30-year loan term.
- Extend your loan term: If you selected a 15-year mortgage term hoping to be debt-free sooner, you can refinance or request a loan modification. Shorter loan terms will have higher mortgage payments and longer loan terms will have lower payments.
- Reconsider your homeowners’ insurance: It’s normal to shop around for the best homeowners insurance rates for the best coverage. If it’s been a while since you requested a homeowners insurance quote, you could be overpaying.
Do doctors get better mortgage rates?
No, doctors don’t get better mortgage rates. Instead, medical doctors and other healthcare professionals are eligible for loan programs with more lenient terms. Physician loans often have higher interest rates than conventional loans due to the lower down payment.
What are the qualifications for a physician loan in New York?
The qualifications for physician loans in New York vary based across lenders, but there are a few similarities worth noting:
- Qualifying degree: Many physician mortgage loans are only available for certain degrees in medicine or dentistry, such as M.D., D.O., D.D.M., and D.D.S.
- Transcripts, offer letter, or employment contract: Lenders want proof that borrowers can pay their loans. If you haven’t started working yet, these documents can provide proof of your earning potential.
- Recent graduate: It’s typical for physician mortgage loans to reserve financing for medical professionals within 10 years of graduation.
- Decent credit score: The minimum credit score physician loan programs will consider is around 700. In general, the higher your credit score, the better your interest rates will be.
- Purchasing a primary residence: Most physician loans require borrowers to use the property as their primary residence.
Who is a Physician Loan in New York Best For?
Only you can decide if a physician loan is the right choice for you, but below are a few examples of medical professionals who may benefit.
Doctors and other high-earners with most of their savings invested
When you earn a high income, it can be easier to squirrel money away to make investments or save for retirement.
If you’re interested in buying a home and you have one of the qualifying degrees, a doctor’s mortgage can make it possible without withdrawing the down payment from your investments.
Reach out to a mortgage officer to discuss your down payment options.
Recent graduates with a high debt-to-income ratio
If you graduated medical school within the last 10 years and you’re still paying off student loans, you may not have had the wiggle room to save for a down payment. You may also be disqualified from conventional loans due to your high debt-to-income ratio.
Physician loan officers are more relaxed in their calculations of the debt-to-income ratio. In many cases, they’ll use your income-driven repayment amount or 2% of your total debt if you’re in deferment.
Medical residents starting jobs and wanting to put down roots
If you are beginning residency close to home or in an area you hope to stay in for a long time, a physician loan can enable you to purchase a home even before you’ve started your job.
Many physician loan servicers will accept your employment contract as proof of employment potential and you can be approved for a home if you’ll start work within 90 days of closing.
Dentists and primary care providers who have been self-employed for at least two years
According to American Dental Association, 73% of dentists were self-employed and owned their practice. There can be significant costs in operating a dental or primary care practice, as is the case with any business.
If you are a dentist or a primary care provider with high debt, low savings, or other challenges that may disqualify you from a conventional mortgage, a doctor mortgage can help.
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