Medical professionals have access to financial products that aren’t often offered to the general public. Are you a doctor interested in becoming a homeowner? If you’re considering purchasing a new home or refinancing a home you already own, physician mortgage loans in Tennessee may be the right option for you.
Tennessee has almost 19,000 physicians practicing medicine, but still, it has a shortage of primary care physicians across the state.
With more than 6.8 million residents living from Memphis to Nashville, to the Smoky Mountains and the Mississippi River, there’s an abundant need for qualified medical professionals to move to Tennessee.
If you’re new to your career or looking for your next great challenge in life, Tennessee offers endless options for settling down and establishing your roots.
You’ll also find access to amazing hospitals and universities, along with a growing healthcare community.
If you’re ready to learn more about the best physician mortgage loans in Tennessee, then consult the lenders we’ve vetted to find the best program for your unique financial situation.
11 Best Tennessee Physician Home Loan Lenders
Here are the top physician mortgage loan lenders in TN:
- BMO Bank
- Citizens Bank
- Evolve Bank & Trust
- Fifth Third Bank
- First Horizon Bank
- Flagstar Bank
- Huntington Bank
- KeyBank
- Regions Bank
- Truist Bank
- US Bank
Discover The Best Lenders in Tennessee 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 (formerly BMO Harris Bank) offers a few financing options to medical doctors (MD), doctors of osteopathy (DO), and dentists (DDS and DMD) through its Physicians’ Program. Residents and fellows are also eligible.
BMO offers three financing options in Tennessee:
- 100% financing up to $1 million
- 95% financing for $1 – $1.5 million
- 90% financing for $1.5 – $2 million
Physicians at any stage in their careers can apply for financing through the Physicians’ Program, but medical professionals who have been practicing for more than 10 years will be required to put down at least 10% for any loan amount.
Loans may be used to purchase or rate/term refinance a duplex, single-family home, condominium, or townhouse.
BMO Bank’s mortgages can be structured as fixed-rate or adjustable-rate mortgages (ARMs) with loan terms of up to 30 years.
Borrowers who open a qualifying account at BMO Bank and enroll in AutoPay will also be eligible for a $500 closing cost discount.
Physicians who are not yet working must provide an employment contract future dated within 90 days of the closing date.
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2. Citizens Bank
- BBB Grade: A+
- JD Power Score: 818
Citizens Bank dedicates a whole portion of its business to designing banking solutions for healthcare professionals. One of those offerings is the Doctor Loan Mortgage Program.
The Doctor Loan Mortgage Program is open to MDs, DOs, DDSs, and DMDs who are still within the first 10 years of their careers.
Borrowers will be required to have a 700 minimum credit score to qualify for a maximum of 95% financing. All down payment options exclude PMI.
Fully licensed physicians can put 5% down on loans up to $850,000, but loans up to $1 million will require 11% down.
Licensed residents, interns, and fellows can borrow a maximum of $600,000. Unlicensed medical residents are still eligible for the program, but they’ll be capped at $450,000.
Borrowers can choose from fixed and adjustable-rate mortgage products. Loans may only be used for the purchase or refinance of a primary residence.
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3. Evolve Bank & Trust
- BBB Grade: A+
- JD Power Score: N/A
Evolve Bank & Trust’s Doctor Mortgage Loan Program is open to the following medical professionals:
- Chiropractors (DC)
- Dental Surgeons (DDS)
- Dentists (DMD)
- Medical Doctors (MD)
- Nurse Anesthetists (CRNA)
- Nurse Practitioners (NP)
- Optometrists (OD)
- Pharmacists (RPH/PharmD)
- Physician’s Assistants (PA)
- Podiatrists (DPM)
- Veterinarians (DVM)
Its open eligibility makes it one of the more inclusive physician loan programs in Tennessee.
The program has a maximum loan amount of $2 million and all loan products exclude PMI.
Loans up to $1 million may not require a down payment, but loans up to $1.25 million will require at least a 5% down payment.
Residents and medical professionals starting new jobs can use an employment contract future dated within 90 days of closing as their income verification.
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4. Fifth Third Bank
- BBB Grade: A+
- JD Power Score: 815
Fifth Third Bank offers two physician loan programs designed to meet the needs of early-career medical professionals and established physicians. Both programs are open to the following designations:
- MD
- DO
- DPM
- DDS
- DMD
- DVM
- OD
Residents, fellows, and new physicians can borrow up to $750,000 without a down payment or up to $1 million with a low down payment. This loan option may also be used to refinance a home you already own.
Established physicians and dentists can also borrow up to $750,000 without a down payment, but their maximum loan amount is set higher at $2 million with a low down payment. Both programs exclude PMI and can be structured as fixed or adjustable-rate mortgage products.
Fifth Third Bank’s loan officers will provide support through every step of the home-buying process. After submitting an initial application, a loan originator will reach out to you to help you find the best financing option for your dream home.
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5. First Horizon Bank
- BBB Grade: A+
- JD Power Score: 825
First Horizon Bank offers specialized home financing options for medical doctors, doctors of osteopathy, oral surgeons, and podiatrists. All borrowers must have a 670 credit score or higher, but deferred student loans will not be used to calculate DTI ratios.
Additional information online is relatively sparse, likely because the financing terms can vary based on the location of your home, the loan amount, and other personal factors.
The program requires applicants to open an account with the bank. From there, borrowers are eligible for a maximum loan amount of $2.5 million. Some loan amounts may allow 100% financing.
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6. Flagstar Bank
- BBB Grade: A-
- JD Power Score: 781
Flagstar Bank’s Professional Loans are open to high-income earners across a wide variety of professions. The following professionals are eligible for special financing offers:
- 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)
All borrowers must be within the first 10 years of their careers. Borrowers with a credit score of 720 or higher can be approved for up to $1 million without a down payment or a low down payment on loans up to $1.5 million without private mortgage insurance.
It’s important to note that all of Flagstar Bank’s Professional Loan products are adjustable-rate mortgages, which means the interest rate will reset periodically throughout the loan term.
Sometimes the reset will result in a lower interest rate, but other times it will result in a higher interest rate. This unpredictability can make it difficult to budget for your monthly payments through the loan term.
For borrowers who don’t have sufficient cash reserves to cover a down payment or closing costs, interested-party contributions are acceptable.
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7. Huntington Bank
- BBB Grade: A+
- JD Power Score: 821
Huntington Bank extends its Doctor Program to medical doctors, doctors of osteopathy, dentists, podiatrists, and veterinarians. In general, the program requires a 700 minimum credit score, but 680 scores may be considered with a 5–10% down payment.
Loans may be used to purchase or refinance a 1-2 unit primary residence, townhome, or condominium, but cash-out refinances are limited to $250,000.
Borrowers may secure up to $1 million without a down payment, but the following down payments will be required for larger loan amounts:
- 5% down payment on loans up to $1.25 million
- 10% down payment on loans up to $2 million
Deferred student loan debt will be excluded from DTI calculations or you can use your income-driven repayment amount. In addition to its leniency on student loan debt, its underwriters will work with borrowers with DTI ratios as high as 50%.
Like Flagstar Bank, gift funds may be applied to the down payment, closing costs, or cash reserves.
Physicians may close on their homes up to 90 days before beginning their jobs as long as they can provide a signed employment contract with a guaranteed start date and base salary.
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8. KeyBank
- BBB Grade: A+
- JD Power Score: 809
KeyBank offers one of the most generous Medical Professional Mortgages on this list. Qualified doctors and dentists can borrow up to a maximum loan amount of $3.5 million, which is $1.5 million more than many of the other physician loan programs on the market.
KeyBank is also unique in that it will provide financing for owner-occupied residences and second homes. Fixed and variable interest rate products are available.
Loans may be used to purchase or refinance a single-family home, townhouse, or condominium.
Doctors aren’t subject to age limits with this program, but they must be practicing to qualify. In other words, retired doctors are not considered candidates for special financing.
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9. Regions Bank
- BBB Grade: B+
- JD Power Score: 836
Regions Bank’s Doctor Mortgage Program is centered around the financial needs of early-career and established physicians and dentists, but it is not exclusive to other high-earning professions.
The following professionals are eligible for special financing through the Doctor Mortgage Program:
- Chiropractors (DC)
- Doctors of Dental Medicine (DMD/DDS)
- Doctors of Osteopathy (DO)
- Licensed Attorneys
- Medical doctors (MD)
- Nurse anesthetists (CRNA)
- Nurse Practitioners (NP)
- Optometrists (OD)
- Pharmacists (PharmD)
- Physician Assistants (PA)
- Podiatrists (DPM)
- Veterinarians (DVM)
The financing options vary slightly depending on career designation, though. For example, MDs, DOs, DMDs, and DDSs can qualify for 0% down payments, but all other professions will have to put down at least 3%.
Qualified borrowers can secure 100% financing on loans up to $750,000 or 95% on loans up to $1 million.
Underwriters will be particularly flexible on student loans by providing special credit allowances tailored to the borrower’s financial situation.
Regions Bank is a particularly great mortgage lender for busy medical professionals because its Loan Application Status Approval allows for asynchronous communication, easy document uploading, updates on the underwriting process, and expedited closing.
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10. Truist Bank
- BBB Grade: A+
- JD Power Score: N/AM
Truist is a relatively new bank; it was formed in 2019 when SunTrust and BB&T merged. Despite its newness, its physician loan program is just as compelling as industry veterans.
The program is open to MDs, DOs, DPMs, DDSs, and DMDs who have been practicing for 15 years or less, including current residents.
Physicians within the first ten years of their career are eligible for 100% financing, but later career physicians will need to put down at least 10%.
The program has a maximum loan amount of $2 million. Student loans aren’t completely excluded from DTI calculations, but the lender will be lenient.
Loans may be used to purchase a new home or refinance a home you already own. Rate/term and cash-out refinances are available. Truist offers refinancing options of up to 80% of the property’s appraised value.
Borrowers can take up to $50,000 in cash when they refinance, but the rest of the loan must go toward debts.
Learn More:
11. U.S. Bank
- BBB Grade: B+
- JD Power Score: 807
U.S. Bank’s physician loan program is open to medical doctors and doctors of osteopathy, which makes it rather exclusive compared to other doctor mortgage loans. Physicians can borrow up to $2.5 million, but the required down payment will depend on the loan amount.
Borrowers can finance up to $1 million with a 5% down payment. Loans up to $1.5 million will require a 10% down payment and loans up to $2 million will require at least 15% down.
Instead of excluding student loan debt, it will use the monthly income-driven repayment amount for borrowers on income-based repayment plans or 2% of the total loan balance for deferred student loans.
Borrowers who open a platinum checking account qualify for a 0.25% lender credit up to $1,000. This credit may reduce total closing costs, which can further help physicians who are short on cash.
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How Physician Mortgage Loans Work in Tennessee
Physician loans allow doctors and other medical professionals to purchase homes by offering lenient qualifying terms.
Mortgage lenders and credit unions are willing to be more lenient with high-earning professionals because they’re less likely to default on their loans and more likely to access student loan forgiveness through public service work.
High-earning professionals are also likely to continue to bring business to the bank as they advance in their careers, so there is a significant incentive for the lender and borrower.
- Exclude Deferred Student Loan Debt: Physician loans will often exclude deferred student loan debt or use your income-driven repayment amount when calculating your monthly debt-to-income ratio, which can make it significantly easier to qualify if you have significant student loan debt and average annual wages.
- Lenient with Work History: Physician mortgage loans are also more lenient when looking at your work history. Conventional loans typically require at least two years of stable income or work history in the same field. Early-career physicians rarely meet this requirement because they’ve devoted their lives to schooling and training. Many programs will allow doctors to qualify for a mortgage if they’re able to provide a signed employment contract as proof of earning potential.
- Low Down Payments: Due to their commitment to training, medical residents and other early-career medical professionals often don’t have the funds set aside to put down a large down payment. Physician loan programs bridge this gap by offering down payment options as low as 0–5% for qualified borrowers. These loan programs also waive private mortgage insurance, which is a fee tacked on to mortgages where the owner holds less than 20% equity in the home.
In general, physician loans can only be used to purchase or refinance an owner-occupied property, so it’s usually not the best option for doctors interested in purchasing a second home or investment property.
However, there are occasionally exceptions to this rule, so it can be beneficial to discuss your options with a loan officer.
Physician loans are also non-conforming loans, which means they’re not held to the same loan limits as other loan programs. In Tennessee, any loan for a single-family property that exceeds $647,200 is considered non-conforming.
Physician loans give medical professionals in Tennessee access to higher loan amounts than other loan programs, which can make it possible to purchase your dream home without having to wait.
Pros and Cons
Taking the pros and cons of physician mortgage loans in Tennessee into account can help you make an informed decision.
Pros
- Refinance: Physician mortgage programs can be used to purchase or refinance a property.
- No PMI: Doctor mortgage loans don’t require private mortgage insurance, regardless of your down payment amount.
- Flexible debt-to-income ratio: DTI ratio calculators are more lenient on student loan debt.
- Use employment contract: Recent medical school graduates or physicians relocating for a new job can use a signed employment contract as proof of earning potential.
- Low down payment options: Many doctor loan programs offer home financing options with as little as 0–5% down.
Cons
- Higher credit score: Physician mortgage lenders will often require a 700 minimum credit score, which is higher than FHA loans and conventional loans.
- Large loan amount: Physician loans are jumbo loans, which means they exceed the loan limits set by Freddie Mac and Fannie Mae. As such, your monthly payments are going to carry a larger financial burden.
- Property restrictions: Doctor mortgage programs are only available for certain property types. Every program will have its own terms, but in general, physician loans are intended for primary residences.
- Closing costs: Borrowers will still have to make sure they have the funds for closing costs, even with 100% financing.
Frequently Asked Questions
Do doctors get better mortgage rates?
In some cases, doctors get better mortgage rates, but it will ultimately come down to that physician’s unique credit profile. We recommend talking to a mortgage broker or loan officer to find out what interest rate options you qualify for.
Physician mortgage programs are designed for early-career medical professionals who may not have sufficient income history or a down payment saved to qualify for a conventional mortgage.
These programs are often more lenient when calculating DTI ratio as well.
What is a 5/1 ARM physician loan?
A 5/1 ARM physician loan is a doctor loan program that begins with five years of fixed interest. After five years of loan payments, the interest rate will reset annually until the loan is paid off.
Interest rates can fluctuate over the loan term so it’s important to budget carefully if you choose this financing option.
How do doctors get a mortgage with no credit?
Doctors can get a mortgage with no credit by discussing their options with a loan officer. VA loans don’t have a minimal credit score requirement and FHA loans are often more lenient with credit score requirements if you can put down 10%.
In some cases, physician mortgage programs will use alternative methods to verify your payment history for applicants who don’t have established credit scores, but that’s not a guarantee.
What is the best way to find a physician mortgage?
The best way to find a physician mortgage is to do your research, discuss your options with qualified financial representatives, and shop around for a loan program that best fits your needs.
Who is a Physician Loan in Tennessee Best For?
Physician mortgage loans in Tennessee aren’t for everyone, but there are a few situations in which they can help borrowers who may not otherwise qualify for conventional mortgages.
If any of the below situations resonate with you, we recommend looking into your local doctor loan programs.
Early-career medical doctors who already own a home
Recent medical school graduates or early-career medical doctors may already own a home, but with mounting student loan debt, it can be advantageous to use a physician mortgage loan to refinance.
Physician mortgage loans can be used to rate/term refinance your home at a lower rate or provide a cash-out option so that you can use your home equity to invest in other real estate, pay down debt, or bolster your savings for future expenses.
First-time home buyers who happen to be medical professionals
Medical professionals have unique access to flexible down payment options that they should feel comfortable taking advantage of when purchasing a home.
Choosing a lower down payment option can leave you with more flexibility to make home improvements, save for a rainy day, or meet the cash reserve requirements set by your mortgage lender.
Self-employed dentists or veterinarians who want to invest in their practice
Self-employed physicians are business owners in their own right, which means every penny counts. Purchasing a home with a low down payment can allow these physicians to continue to invest in their private practice without delaying their dreams of homeownership.
Many self-employed dentists and veterinarians can qualify for a physician loan with two years of 1099 income or tax returns.
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