Conventional mortgage lenders are held to stringent standards to reduce the risk of borrowers defaulting on their loans.
These standards can seem like 50-foot walls blocking early-career physicians and other high-earning professionals from purchasing a home and building equity.
Professional mortgage loans are specialized loan products tailored to help prospective homeowners with advanced degrees overcome these obstacles.
What Is a Professional Mortgage Loan?
A professional mortgage loan is a type of loan program open to physicians and other high-earning professionals who have spent years in training for their careers.
Often referred to as physician mortgage loans, professional mortgage loans are designed to eliminate many of the barriers to homeownership that highly educated Americans face.
- Employment History: Due to all the years spent in school, high-earning professionals don’t have the same employment history as those who have been in the workforce for years. Professional mortgage loan programs make allowances for employment history by accepting signed employment contracts or two years of self-employment tax returns.
- DTI Calculations: Higher education often results in significant student loan debt and little ability to save for a down payment. Professional mortgage loan programs will often exclude deferred student loan debt from debt-to-income ratio (DTI) calculations. If they don’t, they may use a fraction of your total loan balance.
- Higher Financing Limits: Professional loan programs will also provide 95–100% financing in many cases, which can greatly cut down the initial costs of purchasing a home.
- Exclude PMI: Even with the low down payment amount, it’s standard for professional mortgage loans to exclude private mortgage insurance (PMI). PMI is an extra fee meant to protect the lender in the event you default on your loan. It’s typically between 0.1 and 2% of your original loan balance annually. The fee is normally added to your monthly payments until you reach 20% equity. It can add hundreds to your mortgage payments depending on your loan amount. PMI is determined relative to the borrower’s credit approval, loan balance, down payment, and loan term.
Who’s Eligible for Professional Mortgage Loans?
Professional mortgage loans are typically extended to the following professionals:
- Medical doctors (MD)
- Doctors of Osteopathic Medicine (DO)
- Dentists (DDS/DMD)
- Podiatrists (DPM)
- Veterinarians (DVM)
Some programs include other high-earning professionals:
- Accountants (CPAs)
- Nurse anesthetists (CRNA)
- Nurse practitioners (NP)
- Physician assistants (PA)
- Attorneys (JD)
- Pharmacists (PharmD)
- ATP Pilots
Pros and Cons
All financial decisions have their pros and cons.
We’ve outlined a few notable factors to consider before deciding if a professional mortgage loan is right for you.
Pros
- Larger loan amount: Qualifying borrowers can secure larger loan amounts than they can with conforming conventional mortgages. Many professional loans are jumbo loans.
- Flexible DTI calculation: Professional mortgage loan underwriters may exclude or consider student loans differently than conventional mortgage programs.
- Low down payment: Many professional mortgage loans will provide 85–100% loan-to-value financing for qualifying properties.
- Can be used for refinancing: Professional mortgage loans can be used to refinance a property you already own. Refinancing can help you leverage your home equity to pay off debts, make home renovations, or simply lower your mortgage payments.
- No private mortgage insurance: Professional loan programs do not require borrowers to add PMI to their monthly payments.
Cons
- Adjustable-rate mortgages: Many professional mortgage programs are ARMs, which means the interest rate can change over the loan term. Fluctuating interest can make it more difficult to budget for mortgage payments compared to a fixed-rate mortgage.
- High monthly payment: Because professional loans often have a larger principal balance than other types of loans, the monthly mortgage payment can be significant.
- 700 credit score: Professional mortgage loans have a higher credit score requirement than other loan programs, especially government agency-backed programs. If you’re interested in a professional mortgage program, you should have a 700 minimum credit score, though some programs have stricter requirements.
7 Best Professional Mortgage Loan Lenders
Here are the best lenders for professional mortgage loans:
Discover The Best Lenders 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. U.S. Bank
- BBB Grade: B+
- D. Power Score: 820
- State availability: AZ, AK, CA, CO, ID, IL, IN, IW, KS, KY, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, SC, SD, TN, TX, UT, WA, WI, WI
U.S. Bank offers its physician loan program to medical doctors and doctors of osteopathic medicine, including current residents and fellows. Borrowers must have a minimum credit score of 710 to qualify.
The program has a $2.5 million maximum loan amount. Loans up to $1 million require a 5% down payment, while loans up to $1.5 million require at least 10%. Loans up to $2 million require a 15% down payment.
Underwriting will use 2% of your deferred student loan balance or your income-driven repayment amount when calculating your monthly DTI ratio. The program will not sponsor construction loans, so you’ll need to purchase or refinance an existing home to qualify.
Borrowers who open a Platinum Checking Account can qualify for a lender credit of 0.25% of their loan amount––up to $1,000. This lender credit can reduce your closing costs.
Like many professional loan programs, it does not require PMI.
Learn More:
2. Flagstar Bank
- BBB Grade: NR
- D. Power Score: 781
- State availability: CA, IN, MI, OH, WI
Flagstar Bank offers one of the more inclusive professional loan programs in the nation. It is open to the following high-earning professionals within the first 10 years of their careers:
- ATP Pilot
- Attorney (JD)
- 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)
- Nurse Anesthetist (CRNA)
- Nurse Practitioner (NP(
- Physician Assistant (PA)
- Registered Nurse (RN)
- Veterinarian (DVM)
Flagstar Bank requires borrowers to have a 720 minimum credit score to qualify for 100% financing on loans up to $1 million. Professionals can also borrow up to $1.5 million with a low down payment.
All of Flagstar Bank’s Professional Loan products are adjustable-rate mortgages (ARMs), meaning the interest rate will fluctuate over the life of the loan.
Borrowers will also be approved with interested-party contributions or gift funds.
Learn More:
3. KeyBank
- BBB Grade: A+
- D. Power Score: 794
- State availability: AL, CO, CT, DE, FL, ID, IL, IN, IW, ME, MD, MA, MI, MN, NJ, NY, OH, OR, PA, RI, TX, UT, VT, VA, WA, DC
KeyBank extends its Medical Professional Program to physicians and dentists, including medical doctors, doctors of osteopathic medicine, and podiatrists. Unlike other programs on this list, it does not have an age limit for borrowers.
Borrowers can be at any stage in their careers, but they must be currently practicing. Retired medical professionals are ineligible.
The program will provide up to $3.5 million in financing for the purchase or refinancing of a primary or secondary home. Secondary homes are rarely eligible for professional mortgage loans, so that makes KeyBank stand apart from the pack.
Down payment requirements will depend on the exact loan amount and credit approval.
Borrowers may purchase an attached or detached single-family home, condominium, or townhouse.
Loans may be structured with fixed or variable interest rates.
The program will connect borrowers with knowledgeable loan officers who will provide personalized service every step of the way, so you can feel empowered to make an informed decision.
Learn More:
4. Evolve Bank & Trust
- BBB Grade: A+
- D. Power Score: N/A
- State availability: AL, AZ, AR, CA, CO, CT, DE, FL, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC
Evolve Bank & Trust extends its professional mortgage loan program to the following designations:
- MD (including current residents and fellows)
- DO
- DDS
- DMD
- PA
- NP
- DVM
- CRNA
- DC
- OD
- DPM
- PharmD
- Clinical Nurse Specialists
Borrowers must be within 10 years of completing residency to qualify for the program. Loans may be used to purchase existing 1-4 unit family homes and condominiums or build a new construction property.
This lender will work with lower credit scores than its competitors and it will be flexible with DTI ratio calculations. Its underwriters will make exceptions on an individual basis.
For incoming residents or doctors relocating for new employment opportunities, it will accept employment contracts as proof of earning potential.
Evolve Bank & Trust will provide 100% financing on loans of up to $1 million. Loans up to $1.25 million will require a minimum down payment of 5%, up to $1.5 million will require a 10% down payment, and up to $2 million will require at least a 15% down payment.
Borrowers who don’t meet the minimum requirements can use a non-occupant co-signer and gift funds to meet the terms. The lender may even provide discounts on closing costs where applicable.
There will be a minimum cash reserves requirement, but it will depend on the total loan amount.
Learn More:
5. TD Bank
- BBB Grade: NR
- D. Power Score: 837
- State availability: CT, DE, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA, DC
TD Bank offers specialized mortgage programs for doctors, dentists, residents, and fellows within the first 10 years of their careers. The TD Medical Professional Mortgage Program will provide loans for the purchase or refinancing of a primary residence.
Eligible properties include single-family homes, condominiums, townhouses, and co-ops in select markets. Fixed and adjustable-rate mortgage products are available.
Qualified borrowers can secure up to $750,000 without a down payment. Loans up to $1.25 million will require a small down payment of 5%. The program has a maximum loan amount of $1.5 million with a 10.01% down payment.
Borrowers will not have to pay PMI. Underwriters will also be lenient on student loan debt. Employment contracts may also be used as proof of earning potential so you can close before you start working.
Learn More:
6. Huntington Bank
- BBB Grade: A+
- D. Power Score: 821
- State availability: CO, FL, IL, IN, KY, MI, MN, OH, PA, WV, WI
Huntington Bank will provide PMI-free mortgages to physicians, dentists, and veterinarians who want to purchase or refinance their primary residence.
Borrowers will be required to provide proof of income through an employment contract and sufficient cash reserves.
Cash reserves can be money in a standard savings account, but in some cases, life insurance policies and retirement accounts count.
The minimum reserve requirements depend on the total loan amount. The program will provide up to $1 million without a down payment, but larger loans will require a small down payment.
Loans up to $1.25 million will require a 5% down payment. The program has a maximum loan amount of $2 million with a down payment of 10%.
Cash-out refinances are limited to $250,000.
Learn More:
7. Truist Bank
- BBB Grade: A+
- D. Power Score: N/A
- State availability: AL, FL, GA, IN, KY, MD, NJ, NC, OH, PA, SC, TN, TX, VA, WV, DC
Truist Bank’s physician mortgage loans are available to medical doctors, doctors of osteopathic medicine, dentists, and podiatrists. Residents are also eligible.
Borrowers within the first 10 years of their career can qualify for up to $2 million without a down payment, but later career physicians will need to put down at least 10%.
Student loan debt isn’t wholly excluded from DTI calculations, but underwriters will be more lenient than conventional mortgages.
Borrowers may also use the program to cash out refinance their primary residence. Cash-out refinances will lend up to 80% of your home’s appraised value so you can pay off your debts. You can also take up to $50,000 cash to do as you please.
Learn More:
Other Home Loan Options for Professionals
Physician mortgage loans aren’t the only home loan options available to interested home buyers.
Before making a final decision on your mortgage, it can be a good idea to talk to a loan officer about the advantages of each of the below loan products.
| Loan Type | Quick Info |
| Conventional Loan (most common mortgage option) |
Minimum Credit Score: 640 Minimum Down Payment: 3% Maximum DTI ratio: 43% Interest: Fixed or variable Open to: Anyone who qualifies Fees: PMI with less than 20% down Property types: Any |
| FHA Loan (sponsored by Federal Housing Authority, serviced by private lenders) |
Minimum Credit Score: 500* Minimum Down Payment: 3.5% Maximum DTI ratio: 43% Interest: Fixed Open to: Anyone who qualifies Fees: Upfront funding fee of 1.75% Property types: Primary residences that meet FHA minimum standards |
| USDA Loan (sponsored by the U.S. Department of Agriculture, serviced by private lenders) |
Minimum Credit Score: 640 Minimum Down Payment: N/A Maximum DTI ratio: 41% Interest: Fixed Open to: Low to moderate-income families in rural areas Fees: Annual fee of 0.35% Property types: Single-family homes used as your primary residence |
| VA Loan (sponsored by Department of Veteran Affairs, serviced by private lenders) |
Minimum Credit Score: N/A Minimum Down Payment: N/A Maximum DTI ratio: 41% Interest: Fixed or variable Open to: Active duty military and veterans Fees: Upfront funding fee of 1.65% Property types: Any property where at least 50% remains owner-occupied for three years |
| 80/10/10 Mortgage (Finance 80% of purchase cost, take out 10% home equity loan, put a 10% down payment) |
Minimum Credit Score: 640 Minimum Down Payment: 10% Maximum DTI ratio: 43% Interest: Fixed or variable Open to: Anyone who qualifies Fees: N/A Property types: Any |
*FHA loans will work with borrowers with credit scores as low as 500, but they will need to put at least 10% of the home’s purchase price as a down payment. A credit score of 590 is recommended for more favorable FHA loan terms.
Frequently Asked Questions
What are the 3 different types of mortgage loan originators?
The three different types of mortgage loan originators are retail banks/credit unions, mortgage brokers, and mortgage bankers. All three types of mortgage loan originators create loans.
You can confirm you’re working with a reputable mortgage loan originator by asking for their Nationwide Multistate Licensing System (NMLS) number. The NMLS assigns a unique number to each person or company licensed by the organization.
It allows consumers to look up their loan officers’ records and qualifications through the NMLS Consumer Access portal.
What is the difference between a homeowner mortgage and a professional mortgage?
The difference between a homeowner mortgage and a professional mortgage is that homeowner mortgages are the more standard loan product. Anyone who qualifies can secure a homeowner mortgage, but a professional mortgage is restricted to certain occupations.
What are the advantages of a professional mortgage?
There are a few advantages of a professional loan:
- Higher loan amount
- Low down payment
- Open to a variety of medical professionals
- May exclude student loan debt from your DTI calculation
- No private mortgage insurance
Perhaps the biggest benefit of professional mortgage programs is the exclusion of private mortgage insurance. PMI can add thousands of dollars to your mortgage payments over the life of the loan.
A professional mortgage can enable you to purchase a home you can use to build equity without having to put together a down payment that could take away from your other priorities.
