Physician mortgage loans in North Carolina can help your housing dream become a reality if you’re an early-career medical professional who hasn’t had the time or resources to save for a down payment or build a long work history while you’ve been training.
More than 28,000 physicians call North Carolina home and the state hosts some of the country’s most prestigious universities and residency programs.
It’s a state where you’ll find multiple major metropolitan areas, such as Charlotte and Raleigh, fantastic hospitals and healthcare, and many options for a home purchase from the scenic Appalachian mountains to pristine suburbia and even glistening coastal beaches.
If you’re ready to get your ducks in a row to purchase a home, start your research with the best physician mortgage loans in North Carolina.
11 Best North Carolina Physician Home Loan Lenders
Here are the top physician mortgage loan lenders in NC:
- BMO Bank
- Citizens Bank
- Fifth Third Bank
- First Horizon Bank
- Flagstar Bank
- Huntington Bank
- KeyBank
- Regions Bank
- TD Bank
- Truist
- US Bank
Discover The Best Lenders in North Carolina 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) extends its Physicians’ Program to medical doctors (MD), doctors of osteopathy (DO), and dentists (DDS and DMD) at any stage in their careers.
There are three financing options from BMO in North Carolina:
- 100% financing up to $1 million
- 95% financing for $1 – $1.5 million
- 90% financing for $1.5 – $2 million
Physicians who have already been practicing for 10 years or more will be required to put down at least 10% on all loan amounts.
- 0% down payment on loans up to $1 million without PMI
- 5% down payment on loans up to $1.5 million without PMI
- 10% down payment on loans up to $2 million without PMI
Borrowers who hold a qualifying BMO Bank account and enroll in AutoPay for mortgage payments will be eligible for a $500 closing cost discount as well.
Student loan debt isn’t excluded from debt-to-income (DTI) calculations but its underwriting guidelines are flexible. In many cases, they’ll approve borrowers with DTI ratios as high as 45%, which is more lenient than many other loan programs.
The Physicians’ Program is available in standard fixed and adjustable-rate mortgage products for up to 30 years. Loans may be used to purchase or rate/term refinance a duplex, single-family home, condominium, or townhouse you’ll use as your primary residence.
Self-employed physicians can be approved for the program with two years of tax returns. Other physicians can use a signed employment contract future dated within 90 days of closing as proof of earning potential.
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2. Citizens Bank
- BBB Grade: A+
- JD Power Score: 818
The Doctor Loan Mortgage Program is Citizens Bank’s physician loan program. It will provide up to 95% financing to medical doctors, dentists, and doctors of osteopathy with a minimum credit score of 700.
Interns, residents, and fellows are also eligible, but their loan amounts are capped differently. All borrowers are required to be within the first 10 years of their careers.
Qualified borrowers are eligible for up to $850,000 with a 5% down payment, but loans up to $1 million will require at least 11%.
Licensed medical residents, fellows, and interns can borrow up to $600,000. Unlicensed early-career medical professionals are limited to a total loan amount of $450,000.
Student loan debt deferred for 12 months or more is not factored into DTI calculations.
Loans may be used to purchase or refinance a primary residence. Eligible property types include
Borrowers can choose from fixed or adjustable-rate mortgage options.
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3. Fifth Third Bank
- BBB Grade: A+
- JD Power Score: 815
Fifth Third Bank offers two physician mortgage loan options for medical professionals at any stage in their careers. Residents, fellows, and established physicians and dentists with the following designations are eligible for the program:
- MD
- DO
- DPM
- DDS
- DMD
- DVM
- OD
Residents, fellows, and new physicians are classified as anyone who is still within their first year of practicing, whereas established physicians and dentists are anyone who has practiced more than one year.
New physicians can borrow up to $750,000 without a down payment or up to $1 million with a low down payment. New physicians may also use their loans to refinance a property they already own, but established physicians may not.
Established physicians can borrow up to $750,000 without a down payment, but they’re eligible for larger loans up to $2 million with a low down payment. All loan options exclude PMI.
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4. First Horizon Bank
- BBB Grade: A+
- JD Power Score: 825
First Horizon Bank prefers interested borrowers to contact a Private Client Services Relationship Manager to get customized loan offers, so there isn’t a lot of information published readily online.
However, we know a few key facts about its home financing options for medical professionals. First, it’s open to oral surgeons, medical doctors, doctors of osteopathy, and podiatrists. Medical residents aren’t currently eligible.
Some loan amounts are eligible for 100% financing––meaning no down payment––and the program has a generous maximum loan amount of $2.5 million.
Deferred student loan debt is not factored into DTI calculations, but all borrowers must have a 670 credit score or higher.
All borrowers will be required to open an account with the bank and enroll in AutoPay.
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5. Flagstar Bank
- BBB Grade: A-
- JD Power Score: 781
Flagstar Bank offers an inclusive professional loan program to high-earning professionals in the following careers:
- 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. They must also have a 720 credit score or higher to qualify for 100% financing on loans up to $1 million. The program has a maximum loan amount of $1.5 million, but the larger loans will require a small down payment.
Flagstar Bank is unique in that it exclusively offers adjustable-rate mortgages through this program. It’s important to note as fluctuating interest rates may not be the best fit for everyone’s financial situation.
Interested party contributions, or gift funds, are allowed to be applied to closing costs, down payments, or cash reserves.
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6. Huntington Bank
- BBB Grade: A+
- JD Power Score: 821
Huntington Bank’s Doctor Program is designed to meet the needs of physicians, veterinarians, dentists, and podiatrists. Doctors with a qualifying degree are eligible for home loans up to $2 million.
Typically, the program has a minimum credit score requirement of 700, but there may be some flexibility for borrowers with lower credit scores who can afford a 5–10% down payment.
The program offers the following financing options:
- 0% down payment on loans up to $1 million
- 5% down on loans up to $1.25 million
- 10% down on loans up to $2 million
All down payment options exclude PMI.
Loans may be used to purchase or refinance a single-family home, duplex, condominium, or townhome. Rate/term and cash-out refinance are available, but the latter will be limited to $250,000.
All standard adjustable-rate and fixed-rate mortgage products up to 30 years are available, but final financing approval will depend on the borrower’s creditworthiness.
The program is particularly generous with DTI considerations. First, student loan debt deferred for 12 months or more will not be factored into DTI calculation and if you’re on an income-based repayment plan, that amount will be used.
While conventional loans typically require a DTI of 43% or less, Huntington Bank will work with borrowers with ratios as high as 50%.
Borrowers who have a signed employment contract dated within 90 days of closing can purchase a home before they start work.
Like Flagstar Bank, Huntington will allow borrowers to apply gift funds to closing costs, down payments, and cash reserves.
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7. KeyBank
- BBB Grade: A+
- JD Power Score: 809
KeyBank’s Medical Professional Mortgage Program is open to medical doctors and dentists at any stage in their careers except for retired doctors. The program has a generous maximum loan amount of $3.5 million, which is the largest loan amount on this list.
Borrowers can qualify for 100% financing on loans up to $1 million, but loans up to $1.5 million will require a down payment of at least 5%. Loans up to $2 million will require at least 15% and larger loans will require proportional down payments. PMI is waived for any down payment amount.
A loan officer can work with you to find out your exact down payment and pre-approval amount.
KeyBank home loans may be used to purchase or refinance a single-family home, condominium, or townhouse. Unlike many physician loan programs, KeyBank will provide financing for the purchase of a second home.
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8. Regions Bank
- BBB Grade: B+
- JD Power Score: 836
Regions Bank’s Doctor Mortgage Program provides 100% financing options to residents, medical doctors, doctors of osteopathy, and dentists, but other high-earning professionals such as advanced practice nurses and attorneys can qualify for low down payment options as well.
For example, medical doctors and dentists can secure a loan up to $750,000 without a down payment, but other professionals may have to put down at least 3%––that’s still a good deal.
The program will be lenient on student loan debt by providing special credit allowances. It’s also a great option for busy professionals who don’t have a lot of time to connect with their loan officer on the phone throughout the underwriting process.
Regions Bank’s Loan Application Status Portal allows borrowers to track the status of their loan and upload necessary documents, so closing can be as seamless and as efficient as possible.
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9. TD Bank
- BBB Grade: N/A
- JD Power Score: 837
TD Bank offers financing options tailored to the needs of practicing physicians, doctors, dentists, surgeons, and residents within the first 10 years of their careers through its Medical Professional Mortgage Program.
The following down payment options are offered to qualified borrowers:
- 0% down payment on loans up to $750,000
- 5% down payment on loans up to $1.25 million
- 01% down payment on loans up to $2 million
All down payment options are available with fixed or variable interest rate products. Loans may be used to purchase a single-family home, condominium, co-op, or townhouse that will be used as your primary residence.
All down payment options exclude PMI. TD Bank doesn’t elaborate on how it calculates the DTI ratio, but it does use a flexible approach that may make it easier for borrowers with high student loan debt to qualify.
Signed employment contracts for new opportunities are also considered verifiable proof of income, which can help upcoming residents or doctors move for work.
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10. Truist Bank
- BBB Grade: A+
- JD Power Score: N/A
Truist Bank was founded in 2019 after SunTrust and BB&T merged. Despite its relative newness, Truist’s physician mortgage program offers a competitive value for physicians and dentists within the first 15 years of their careers.
The program maxes out at $2 million. Early-career physicians who have been practicing for 10 years or less are eligible for 100% financing options, but more experienced physicians will be required to put down at least 10%.
Loans may be used to purchase or refinance a primary residence. The bank will provide refinancing options of up to 80% of the property’s appraised value.
In the case of cash-out refinancing, borrowers may take up to $50,000 in cash from the equity of their home, but all other funds must be used to pay off debts.
It won’t completely disregard student loan debt, but it will be more lenient than conventional mortgage programs.
To find out more information about your financing options, contact a Truist Bank loan officer.
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11. U.S. Bank
- BBB Grade: B+
- JD Power Score: 807
U.S. Bank provides up to $2.5 million in financing to medical doctors and doctors of osteopathy, including current residents.
The down payment options depend on the total loan amount, but all borrowers will need a 710 minimum credit score to qualify.
For example, loans up to $1 million will require a 5% down payment, but loans up to $2 million will require at least 15%.
The program will use income-driven repayment amounts or 2% of the loan balance for deferred student loans when calculating DTI ratios.
Borrowers who open a U.S. Bank Platinum checking account qualify for a lender credit of 0.25% of the total loan amount––up to $1,000.
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How Physician Mortgage Loans Work in North Carolina
Physician mortgage loans work by allowing qualified medical doctors, doctors of osteopathy, dentists, and other medical professionals to purchase or refinance their homes in North Carolina with little to no down payment.
- No PMI: While conventional loans will typically require private mortgage insurance when you put less than 20% down, physician loan programs waive this requirement regardless of your down payment amount. PMI can be as much as 1% of your total loan balance annually, which can amount to thousands of dollars in extra monthly fees until you reach 20% home equity. Because physician loans circumvent this entire requirement your monthly payments can remain affordable, even if you borrow a substantial loan amount.
- Higher Financing Amounts: Many physician loan programs will provide 85–100% financing, which can leave you with more funds available to apply to closing costs, furnishing your home, or other moving expenses.
- Fixed Rate or Adjustable Rate: Physician loans are available as fixed-rate or adjustable-rate mortgages. Fixed-rate mortgages will have loan term options of 15, 20, or 30 years and the interest rate will remain the same the entire time unless you choose to refinance. Adjustable-rate mortgages can be an attractive option because they begin with an initial fixed rate option and then there’s the option for rates to rise or fall over the loan term. In some cases, adjustable-rate mortgages can result in lower monthly payments than fixed-rate mortgage products, but this isn’t always the case.
Pros and Cons
Weighing the pros and cons of doctor mortgage loans can help you make an informed decision about your financing options in North Carolina.
Pros
- Flexible down payment options: Physician mortgage loans offer low down payment options. In some cases, you can finance 95–100% of your home’s purchase price.
- Lenient on student loan debt: Doctor mortgage loans are more lenient on student loan debt, often excluding deferred loans from debt-to-income ratio calculations altogether.
- Refinance: Doctor loan programs are eligible for the purchase or refinancing of an owner-occupied property. Rate/term and cash-out refinancing options are available depending on your mortgage lender.
- No PMI: Borrowers are not required to pay private mortgage insurance, which can save you thousands on your monthly payments over your loan term.
- Purchase with an employment contract: Physicians who haven’t yet built up a work history can qualify for a physician home loan with an employment contract dated within 60–90 days of closing.
- Customized support: Doctor mortgage loan officers are knowledgeable about the needs of medical professionals, so they can provide worthwhile advice and guidance at every step of the home-buying process.
Cons
- Higher interest rates: Some physician mortgage loans have higher interest rates than conventional loans of the same amount.
- Primary residence requirements: Physician mortgage loans are typically reserved for the purchase or refinance of your primary residence––not second homes or investment properties.
- Large mortgage payments: Because physician loans aren’t held to the same loan amount limits as other mortgage options, your monthly loan payments are likely to be significant.
- Good-to-excellent credit: Many doctor mortgage loans require a 700 minimum credit score, which is more restrictive than FHA, VA, and conventional financing options.
Frequently Asked Questions
Do doctors get better mortgage rates?
Doctors do not always get better mortgage rates, but they can access specialized mortgage programs that allow them to purchase or refinance a home when they may otherwise not qualify for a conventional loan.
Mortgage brokers aren’t beholden to any one financial institution, so they can help physicians shop around for the loan program with the best rate.
How does a physician buy a house?
A physician buys a house by following a lot of the same steps as the general population, however, physicians may have access to specialized loan programs for high-earning medical professionals.
To find out what you need to do to qualify for a home, reach out to a loan officer who can walk you through every step of the home-buying process.
What are physician loans?
Physician loans are customized loan programs to help early-career medical professionals purchase a home. Physician loans are more lenient than conventional mortgages in some ways but more restrictive in other ways.
For example, physician loan programs will often exclude your student loan debt from your debt-to-income calculations, which can make it easier to qualify, but you may only be able to purchase your primary residence.
In other words, physician loans typically can’t be used to purchase an investment home or vacation property.
What is a jumbo loan?
A jumbo loan is any loan that exceeds the loan limit set by Freddie Mac and Fannie Mae. In North Carolina, the conforming loan limit is $715,000. Any mortgage that exceeds $715,000 would then be considered a jumbo loan in North Carolina.
Who is a Physician Loan in North Carolina Best For?
Physician loans in North Carolina aren’t the best financing option for every budget, but they can be a great choice for early-career physicians, self-employed medical professionals, or other high-earners that may not qualify for other loan options.
Self-employed dentists and veterinarians
Self-employed physicians often have to consider the massive overhead of running their own practices, so it may not always be prudent to set money aside in a savings account for a substantial down payment.
A physician home loan allows self-employed medical doctors to purchase a new home without taking money away from their business. Doctor mortgage loans also have the benefit of waiving PMI requirements, which can reduce monthly payments by hundreds of dollars.
Medical professionals with deferred student loan debt
Many physician loan programs won’t factor deferred student loan debt into your debt-to-income ratio calculations.
The average physician graduates medical school with more than $200,000 in student loan debt, not including undergraduate school and other living expenses.
The average first-year medical resident makes about $54,000 annually in North Carolina, so their student loan debt would massively outweigh their annual income.
Physician loan programs are often more flexible with debt-to-income ratio requirements, which can allow you to purchase a home early on in your career.
Medical doctors relocating for a new employment contract
Physicians are highly sought after, especially when you consider the various healthcare shortages across the country. Many physicians, recent medical school graduates, and other medical professionals will relocate to continue their careers.
Physician loan programs can allow you to purchase and settle on a home before you start your next job as long as you can provide a signed employment contract.
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