- A physical therapist mortgage loan can give PTs the opportunity to own a home with little to no money down.
- DPT mortgages have down payment options ranging from 0% to 10% with no private mortgage insurance.
- Physical therapists can benefit from relaxed underwriting guidelines that make qualifying easier than a conventional mortgage.
According to the American Physical Therapy Association, “The cost of a doctor of physical therapy degree has created a significant barrier to the ability of recent graduates to achieve financial stability.” Considering physical therapist salaries don’t yet match the prestige of earning a doctorate level degree, many PTs delay their dream of owning a home due to their student debt burden and other traditional home buying barriers, such as saving for a large 20% down payment.
However, thanks to a special home financing opportunity called a DPT Mortgage, physical therapists can take advantage of low down payment options that come with more flexible underwriting criteria. Read on to learn how you can benefit from a physical therapist mortgage loan.
What’s a physical therapist mortgage loan?
A DPT mortgage, also referred to as a physician mortgage loan, is a low down payment financing solution for certain healthcare providers.
The key benefits of a DPT mortgage include:
- Down payment options are much lower than a conventional 20% down payment requirement.
- No private mortgage insurance (PMI) regardless of down payment amount.
- The ability to close on a home up to three months before starting a new position.
- Modified treatment of DPT student loan debt when calculating your debt-to-income ratio (DTI).
- Some physician mortgage lenders are more 1099-friendly, requiring fewer years of tax returns for self-employed physical therapists than conventional mortgage guidelines.
Additionally, this type of loan often results in borrowers qualifying for higher loan amounts overall. This is because most physician mortgage programs have higher loan limits that exceed the conventional limit, which is generally $647,200 for most counties.
However, this benefit can quickly become a negative if you aren’t careful about how much house you can realistically afford. After all, a larger loan amount translates to a large monthly mortgage payment.
5 Best lenders offering a DPT mortgage
Physical therapists are often excluded from many physician mortgage programs as many are still focused on medical doctors and dentists, unfortunately. But some lenders have expanded their eligibility requirements to include the PT profession.
Here are some of the top physician home loan providers who offer a DPT mortgage, listed alphabetically. We’ve included loan officer contact information when available.
1. First Merchants Bank (formerly Level One Bank)
First Merchants Bank provides a medical professional loan that might include physical therapists on a case-by-case basis. Qualifying borrowers can access up to $350,000 with just 3% down and no PMI.
This lender can close on a new home up to 60 days before starting a new position with proof of an employment contract. Additionally, it’s known for its efficient closing process, allowing you to get into a new home quickly.
States available: IL, IN, MI, OH
2. Intercap Lending
Intercap Lending provides home loans for healthcare professionals, including physical therapists, with a minimum credit score of 740. It offers a 0% down option with a loan limit of up to $1.5 million.
States available: AZ, CO, ID, NV, NM, OR, UT, WA
3. Premier Bank
Physical therapists might benefit from a DPT mortgage with Premier Bank. This program provides up to 100% financing for loan amounts up to $750,000. However, qualified borrowers can access up to $1 million with a 5% down payment.
For borrowers with deferred student loans, your student debt will be excluded from your DTI calculation.
States available: IN, MI, OH, PA, WV
4. NEO Home Loans
NEO Home Loans offers a DPT mortgage with up to $2 million in home financing with only 5% down. This program will work with self-employed physical therapists who have less than two years of 1099 income. Additionally, physical therapists can qualify up to 90 days prior to their employment start date.
States available: AZ, CA, CO, FL, GA, PA, TX, UT, WA
5. U.S. Bank
U.S. Bank’s physician mortgage program is reserved for medical doctors only. But physical therapists who don’t qualify for other DPT mortgage loans might still have a low down payment option via its 80-10-10 loan.
This type of piggyback loan isn’t right for everyone. However, it gives borrowers the opportunity to put 10% down with no PMI. To do this, you’ll take out a first mortgage at 80% of the home’s purchase price and a second mortgage for the final 10%.
States available: AL, AK, AZ, CA, CO, DC, ID, IL, MA, MD, MT, MI, MN, MS, NE, NV, ND, NM, NY, NJ, OK, OR, RI, SD, TX, UT, WA, WY, WI
Should you use a physical therapist mortgage loan?
A DPT mortgage can give physical therapists an edge in today’s competitive housing market. For one, you won’t have to spend years saving for a large down payment. But you’ll also benefit from more relaxed underwriting and other generous perks, such as no PMI.
Additionally, you’ll be able to choose from a variety of fixed- or adjustable-rate mortgage options that have competitive interest rates — some of which are lower than conventional rates at the moment.
If you happen to be married to someone in a high-paying field (e.g., medical doctor, attorney, etc.), you might qualify for additional physician mortgage programs. Be sure to explore all profession-based resources and mortgage options available to your household.