Best Physician Mortgage Loans in Ohio

Doctors in Ohio often don’t qualify for traditional mortgage financing because of their high student loan debt.

Fortunately, physician loans in Ohio make it easy for new and established doctors to buy the home of their dreams.

9 Best Ohio Physician Home Loan Lenders

These nine banks have the best physician mortgage loans in Ohio.

1. Citizens Bank
2. Fifth Third Bank
3. First National Bank
4. Huntington Bank
5. KeyBank
6. Northwest Bank
7. Truist Financial
8. US Bank
9. Evolve Bank & Trust

1. Citizens Bank

• BBB Score: A+
• The JD Power Score: 818

Citizens Bank is one of the oldest banks in the United States. Their mission focuses on putting customers first, including offering physician mortgage loans in Ohio. Their program is for MDs, DOs, DDSs, and DMDs only and is open for the first ten years of their career. Citizen Bank offers doctors and dentists fixed and adjustable-rate loan options.

One downside is the loan limits offered to doctors and dentists in Ohio, as they cap their loans

at $1 million and always require a down payment. However, the down payment is usually no more than 10%, which is better than most conventional or jumbo loan options.

The Citizen’s Bank physician loan program is open to self-employed doctors and doctors employed with a medical facility. Self-employed doctors don’t need a 2-year history like conventional loans require, and doctors who haven’t started their position yet, but have an employment contract beginning within 90 days may be eligible.

Learn More:

• Citizens Bank Physician Loans Review

2. Fifth Third Bank

• BBB Score: A+
• The JD Power Score: 818

Fifth Third Bank has a long history and many branches throughout Ohio. Their physician loan program is broken down into two categories – a New Doctor and Established Doctor Program.

The New Doctor program helps physicians secure mortgage financing in their residency, fellowship, or internship. It also applies to doctors who have just started their careers.

New doctors can borrow up to $1 million with no money down or $1 million to $2 million with a low down payment. There is no PMI, and doctors can choose from a fixed or adjustable-rate loan.

The Established Doctor Program is for doctors with at least one year of experience out of residency. It has the same requirements with no down payment necessary up to $1 million and a low down payment on loans between $1 million and $2 million. In addition, there is no PMI required on these loans.

The Fifth Third Physician Loan program is only eligible for primary residences and is open to the following:

• MD
• DO
• DPM
• DDS
• DMD
• DVM
• OD

Learn More:

• Fifth Third Bank Physician Loans Review

3. First National Bank

• BBB Score: A+
• The JD Power Score: 801

First National Bank has been in business for 150+ years, helping doctors secure attractive financing options. They are well-known for their excellent customer service, and like most physician loans on this list, they don’t charge PMI and offer fixed and adjustable-rate options.

Doctors in Ohio can choose from fixed or adjustable-rate loans with low down payments. The program is only open to select doctors, including:

• MD
• DO
• DDS
• DVM
• DMD

First National Bank allows doctors in Ohio to secure financing on a primary residence with no down payment on loans lower than $1 million and up to 10% down on higher loans. First National Bank also offers financing on second homes, but you’ll need a 20% down payment. In addition, physicians can use the loan program on 1 to 2-unit properties.

Learn More:

• First National Bank Physician Loans Review

4. Huntington Bank

• BBB Score: A+
• The JD Power Score: 821

Huntington Bank has a long history of providing communities throughout Ohio with the banking products they need, including physician loans. Their physician loan program includes a purchase and refinance program with various down payment options and fixed or adjustable-rate loans.

The physician loan program at Huntington Bank is only eligible on primary residences. Physicians can borrow up to $1 million without a down payment or put 5% down on loans up to $1.25 million and 10% on up to $2 million.

Huntington Bank has relaxed requirements like most banks but requires cash reserves for physicians to qualify. But, again, like most banks on this list, doctors can get approved with an employment letter up to 90 days before starting work.

The eligible doctors for the physician loan program include:

• MD
• DO
• DMD
• DVM
• DDS

Learn More:

• Huntington Bank Physician Loans Review

5. KeyBank

• BBB Score: A+
• The JD Power Score: 809

KeyBank is an established bank serving the physicians and medical professionals of Ohio. They offer 100% financing on fixed and adjustable-rate loans. KeyBank doesn’t charge PMI, like most banks offering physician loans, but their loan amounts are much higher than most banks, with some doctors borrowing as much as $3.5 million.

The KeyBank physician loan program is available on single-family homes, PUDs, and condos,

and doctors can use the program on primary, secondary, and investment homes.

The KeyBank physician loan program is available to the following medical professionals:

• MD
• DO
• DPM
• DDS
• DMD

Learn More:

• KeyBank Physician Loans Review

6. Northwest Bank

• BBB Score: A+
• The JD Power Score: N/A

Northwest Bank focuses on its customers and not just the money or technology. They pride themselves in putting customers first by not letting technology replace personal service like many banks have done today.

Among the many products Northwest Bank offers is the physician’s loan program. It’s open to doctors and residents with the following designations:

• MD
• DO
• OD
• DDS
• DMD
• DPM

Like many banks on this list, they offer no down payment options, with fixed and adjustable-rate loans available. Medical professionals can use the loan to purchase or refinance their primary residence, and loans are available up to $1.5 million, depending on your qualifying factors.

Learn More:

• Northwest Bank Physician Loans Review

7. Truist Financial

• BBB Score: A+
• The JD Power Score: N/A

Truist Bank works with physicians in Ohio to get attractive financing, including 100% loans of up to $1 million. Truist isn’t one of the most well-known banks on our list, but they are a top 10 bank in the US.

Like most lenders on this list, they don’t charge PMI and exclude student loan debt from your debt-to-income ratio. If you need to borrow over $1 million, you’ll need a 5% down payment on loans up to $1.5 million and 10% on loans up to $2 million. The loan program is only available on your primary residence.

Learn More:

• Truist Financial Physician Loans Review

8. US Bank

• BBB Score: B+
• The JD Power Score: 807

US Bank is a household name and provides attractive physician loans in Ohio. The program is only open to doctors (not dentists); all borrowers will need a down payment. However, the tradeoff is securing a loan from a reputable bank, operating since 1863.

US Bank is known for its excellent customer service and attractive financing options, including the physician’s loan open to residents, fellows, and doctors early in their careers.

US Bank requires 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. Again, the program is only open to the following:

• MD
• DO

Learn More:

• US Bank Physician Loans Review

9. Evolve Bank & Trust

• BBB Score: A+
• The JD Power Score: N/A

Evolve Bank & Trust is a trusted bank in Ohio offering unique loan programs, such as physician loans. They focus on servicing professionals and entrepreneurs and excel in customer service.

Their physician loan program is available to fellows, residents, and new doctors buying single or multi-family homes. If you’re buying a single-family home, the underwriting guidelines are relaxed, and you may borrow up to $2 million.

However, buying a multi-unit property may require a higher credit score or a larger down payment.

Evolve Bank offers its program to the largest list of professionals in our list of banks, including:

• MD
• OD
• DDS
• DMD
• Veterinarians
• Pharmacists
• Nurse practitioners
• Clinical nurse specialists

Learn More:

• Evolve Bank & Trust Physician Loan Review

How Physician Mortgage Loans Work in Ohio

Physician mortgage loans are loans for doctors and other medical professionals with relaxed underwriting guidelines making it easier to secure mortgage financing.

Doctors and other medical professionals can put down less than 20% on a home, not pay PMI, and be able to borrow much higher loan amounts than most other loan programs offer.

Because of the relaxed guidelines and heightened risk, physician loans have higher interest rates. Still, many lenders offer competitive rates and fees to attract more medical professionals to their loan program.

Ways to Use an Ohio Physician Mortgage Loan

Most lenders only allow physician loans on the purchase of a primary residence. However, a few exceptions allow use on a vacation home or refinance a primary residence.

The only exception is house hacking. This method lets you buy a multi-unit property and live in one unit. Then, you can rent the other properties and earn income, using the funds to pay your mortgage.

Physician Loan vs. Conventional Loan

Traditional conventional loans require a 20% down payment, excellent credit, and a low debt-to-income ratio, which can be hard for medical professionals right out of med school.

Physician mortgages make it much easier by providing the following benefits versus conventional loans:

• No down payment – Many doctor loans don’t require a down payment; if they do, it’s much less than 20%.
• Higher loan amounts – Most lenders offer physician loans for as much as $1 to $2 million.
• No current employment required – You can usually borrow a physician loan before you’ve started your job, as long as you have a job offer that begins within 90 days.
• Excludes student loans from DTI – The average med school student leaves med school with $202,450 in debt, and that doesn’t include undergrad debt. Many lenders will exclude the debt; if they include it, they only include the income-based repayment amount.
• No PMI – Physician loans don’t require Private Mortgage Insurance even with no down payment.

Pros and Cons

Before borrowing a physician’s loan in Ohio, it’s important to understand the good and bad about the program. Like any mortgage loan, there are factors to consider to ensure it’s right for you.

Pros

• No or Low Down Payment – Every lender on this list offers the opportunity to borrow $1 million or more with no money down or a low down payment. Most other loan programs would require 20%+ down on such a high loan amount. This makes it much easier for doctors to buy their dream homes while still getting established.
• Exclude Student Loans – Many lenders don’t include student loans in your debt-to-income ratio, making qualifying for a physician loan easier. This is especially important for doctors with a lot of student debt but not enough income to pay them down yet.
• No Private Mortgage Insurance – Most physician loan lenders don’t require Private Mortgage Insurance. This is a tremendous difference from conventional loans, which require PMI until you owe less than 20% of the home’s value. Not needing a down payment and not paying PMI can save you thousands of dollars.
• Open to Many Medical Professionals – Many physician loan lenders open their program to various medical professionals, including those who haven’t started their job yet but have an employment contract. Most lenders will accept it as proof of income if your job begins within 90 days.

Cons

• Easy to get in Over your Head – Because you don’t need a down payment and student loans are excluded from the DTI, it’s easy to borrow more than you can afford. So before accepting a physician loan, consider the monthly payment and overall debt you’re taking on and make sure it makes financial sense in your situation.
• Higher Interest Rates – Physician loans are risky for lenders, causing them to charge slightly higher interest rates than conventional loans. However, even if you can afford the higher payment, no one likes paying more interest than necessary, so be sure to shop around to get the lowest rates.
• Primary Residences Only – Most physician loan programs are for the primary residence only. Therefore, you usually can’t use them on vacation or investment homes. However, if a program allows the loan on multi-unit properties, you can buy the property, live in one unit and rent the others to earn more income.
• Tax Advantages: Your tax liabilities are likely high as a doctor with a large income, so any tax deductions you can take advantage of help. When you buy a house and itemize your tax deductions, you may be able to write off the interest and real estate taxes you pay each year. Plus, when you sell the property, if it’s a primary residence, you may be eligible for the capital gains exclusion if you have lived in the property for two of the last five years, excluding the first $250,000 in capital gains for single filers or $500,000 for married filing jointly couples.

Additional Factors to Consider About Physicians Loans in Ohio

Physician loans are usually available for interns, fellows, residents, and new doctors. Most lenders allow doctors to use the program for the first ten years of their careers, but some have other requirements.

When you borrow a large loan with no money down, it’s essential to consider the long-term effects. For example, if housing prices fall, you could be upside down on your mortgage. Even if you’re not, earning equity in the home could take many years.

Before getting a doctor’s loan in Ohio, consider the following:

• Are you settled? If you haven’t settled in with your career yet and are still figuring out where to work long-term, you may want to consider renting. This makes it much easier to pick up and move anywhere you want without the burden of selling a home. But if you’re ready to settle and want a house for your family, a doctor’s loan can help.
• A new house is a big responsibility. Decide if you’re ready to take on the responsibility of a new house. Not only must you make the mortgage payments, but you must maintain, decorate, and care for the home. Starting a new career as a doctor and adding the responsibility of a home can be too much for some.
• Some loans are adjustable-rate, making it hard to budget for new doctors. In addition, not knowing your cash flow quite yet, may make it necessary to wait until you are established to purchase a home.

Who Physicians Loans in Ohio Are Good For

Physician loans work for many types of medical professionals in many situations. Here’s what to

consider.

Physicians Lacking a Down Payment

If you’re ready to settle down and don’t have a down payment yet, a physician loan can help you achieve your dreams of homeownership. Many physician loan lenders allow you to borrow 100% of the home’s sales price, usually up to $1 million.

Physicians With a High DTI Ratio

Student loans can create an exceptionally high debt-to-income ratio, making qualifying for a mortgage loan hard. Physician’s loans, however, often exclude student debt or use the income-based repayment plan payment to calculate the DTI, making it easier to qualify.

Physicians Looking To Refinance a Current Loan

If you have a mortgage on your home now but need a different rate or term, you can use the physician loan program to refinance. You don’t need a lot of equity, and the qualifying requirements are flexible.

Physicians Early in Their Career

If you’re just starting your career, chances are you don’t have much to put down on a home; if you do, you want to keep it liquid. A doctor’s loan helps you buy the home you want without needing much money down, making it easy to achieve your homeownership dreams.

Physicians Who Want to Keep Their Current Savings

It’s understandable not to want to give up the liquidity of your current savings. However, tying money up in your home is risky because you can’t access it in an emergency. Fortunately, physician loans in Ohio don’t require a large down payment, and some don’t require any money down.

Physicians With Sign Contracts but Not Working

If you have a job offer but the position doesn’t start for a month or two, you can still close on your home with a physician’s loan. Most lenders require that employment begins within 90 days to use an employment contract.

Deciding if Ohio Physicians Loans Are Right for You

Taking out a mortgage loan is a big decision. Determine if a physician’s loan is right for you by looking at the following:

• The loan’s total cost, including interest
• The monthly payment
• The responsibility of owning a home early in your career
• How established you are at your practice, or if you’re still finding your ‘forever practice’

Alternatives to Physicians Loans

Physician’s loans aren’t the only option for doctors looking to buy a home. Here are some alternatives.

A Conventional Loan

A conventional loan is the most common choice but requires stricter requirements. However, a conventional loan can be a better option if you need to borrow less than the conventional loan limits of $726,200 in most areas.

You will need a down payment of at least 3%, and the lender must include your student loans in your debt-to-income ratio. However, it can be a good alternative to consider if you have a high income and/or low debts.

All conventional loans require PMI until you owe less than 80% of the home’s value.

An 80/20 and 80/10/10 Loan

A piggyback loan is another alternative to conventional loans. These loans are 80% first mortgages through a conventional lender, with the remaining funds coming from a piggyback second mortgage.

In the case of an 80/20 mortgage, you borrow a second mortgage for 20 percent of the home’s sales price. Unfortunately, this is often hard to come by as most lenders won’t lend 100%.

The 80/10/10 option is an 80% first mortgage, a 10% second mortgage, and a 10% down payment.

The nice thing about piggyback loans is you avoid PMI because you aren’t borrowing more than 80% on the first mortgage.

An FHA Loan

FHA loans are a good alternative for someone who needs flexible guidelines and doesn’t need a large loan amount.

FHA loans are government-backed loans but allow low credit scores and high debt-to-income ratios. Like conventional loans, lenders must include your student loan debt in your DTI, so this only works if you aren’t over your head in student debt.

With FHA loans, though, you must pay mortgage insurance for the life of the loan, no matter how much you owe. However, you only need a 3.5% down payment to get approved for the loan.

A VA Loan

A VA loan is for veterans of the military. If you served in any branch, including the Reserves or National Guard, you might be eligible for 100% financing.

Unlike conventional loans, VA loans don’t have a loan limit, so you can borrow as much as you qualify for with no down payment. However, VA lenders must include your student loans in the DTI, so that could limit how much you could borrow.

VA loans have flexible guidelines and don’t charge mortgage insurance, but veterans pay a funding fee to secure the loan.
Different Forms of Physician Mortgage Loans

Physician mortgage loans in Ohio are available in many forms, including:

• Fixed-rate
• Adjustable-rate
• 15 to 30-year terms

Consider your plans for the home and how much certainty you need in the mortgage payment when deciding which loan is right for you.

Features You Can Only Get With Physician Loans

Physician loans have some unique features for doctors and other medical professionals, including:

• No down payment
• Much higher loan limits
• Exclusion of student debt from the DTI
• The ability to close the loan before starting your job

Frequently Asked Questions

If you still have questions, check out these questions from people like you.

Do physicians get better rates on mortgage loans?

Physicians often pay higher mortgage rates than other borrowers because of the risk lenders take with these loans. Therefore, shopping around is important to get the best interest rate on your loan.

How many times can a physician mortgage loan be used?

Physicians may be able to use the physician loan program repeatedly, but it varies by lender. For example, some lenders only offer the program to first-time buyers, but most offer it to doctors within the first ten years of their careers.

Can you refinance a pre-existing physician mortgage loan in Ohio?

Yes, if you meet the lender’s requirements, you can refinance an existing physician mortgage loan.

Who can qualify for a physician loan?

Each lender has different requirements, but you must generally be a doctor or dentist, have good credit, and have a higher-than-average income. In addition, you must prove you can afford the payment and may need a down payment of 5% to 10%, depending on how much you borrow.

What qualifications are needed for a physician to get a mortgage?

To qualify for a physician loan, you need good credit (usually 700+) and proof you can afford the loan. Even though lenders exclude student loan debt from your DTI, you must prove you can afford the payments and have ample cash flow. Some lenders also require a certain amount of cash reserves.

Do student loans affect a physician’s qualification for a physician mortgage loan?

Most lenders exclude student loans from your physician mortgage loan application. However, if they include them, it’s usually the income-based repayment amount they include.

Are there credit score requirements for physician loans in Ohio?

Every lender has different requirements, but you need good credit to qualify for a physician loan.

Are physician loans in Ohio a good or a bad idea?

Taking out a physician loan is a big decision. It can be good in the right situation, but it can also be risky. Make sure you aren’t borrowing more than you can afford or buying a home sooner than you are ready. It’s easy to get in over your head with a physician loan.

How big of a loan should I get with a physician mortgage loan?

Only borrow what you can afford with a physician mortgage loan. Even if you can borrow as much as $2 million, it doesn’t mean you should. Keep it affordable so you don’t bite off more than you can chew.

How many years do student loans take to pay off as a physician?

Every person is different, but it can take as long as 20 to 25 years to pay off a loan as a physician.

What is the average amount of student debt physicians have?

The average student has $202,450 in student loans.

Is there PMI on physician loans?

The nice thing about physician loans is they don’t charge PMI. This can save you thousands of dollars on the loan.

Are there repayment penalties for physician loans?

Most lenders don’t charge a prepayment penalty on physician loans, which means you can repay it whenever you want.

Should you put a downpayment down on a physician loan?

Investing money in the home you buy is always a good idea. This decreases the risk of owing more than the home is worth or having a mortgage payment you can’t handle.

When should a physician loan be avoided?

If you aren’t sure you’re ready to own a home, or the thought of a large monthly payment worry you, wait to buy a home. Getting caught up in the excitement of no down payment and easy qualifying requirements is easy, but it’s not worth getting in over your head in debt.

Should You Get a Physician Loan in Ohio?

Before borrowing a physician loan, ensure you’re ready to own a home. Look at your financial situation and see how a mortgage payment fits into it. Also, be sure you’re ready to settle down and take on the responsibility of owning a home while establishing yourself as a new doctor.