KeyBank Physician Mortgage Loan Review

As a doctor or dentist working in healthcare, you work long hours and take care of others for a living. Your job is rewarding, and although you might earn a high income, you might be saddled with high student loan debt.

If you’re wondering whether you’d be approved for a mortgage loan, you have a unique advantage. Many banks have a special loan program catered to doctors or dentists who want to buy real estate.

KeyBank is one of these lenders and is a leading national bank with almost two centuries of history. Based in Cleveland, Ohio with a staggering $181 billion in assets, KeyBank is just one lender that offers physician mortgage loans to eligible candidates.  Read on for Student Loan Planner’s KeyBank physician loan review.

Minimum down payment	Zero down up to $1 million 5% down up to $1.5 million 15% down up to $2 million
Residents allowed	Yes
Maximum loan amount	$3.5 million
Degrees that qualify	MD, DO, DPM, DDS, DMD
Eligible states	AK, AZ, CA, CO, CT, FL, GA, HI, ID, IL, IN, KY, ME, MD, MA, MI, MO, MT, NV, NH, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WI, WY, Washington DC

KeyBank physician mortgage details

The KeyBank physician loan is available to dentists and doctors in a wide variety of states and offers competitive rates. You can also borrow up to $3.5 million dollars with no private mortgage insurance (PMI). Here are the key details you should know.

KeyBank physician mortgage loans: pros and cons

Physician home loans can help you buy a home faster, but it’s also a big commitment. That’s why comparing the pros and cons is important before signing paperwork or choosing one individual mortgage lender.

KeyBank physician mortgage loan pros

All-in-one mortgage lender

KeyBank acts as a main hub for all physician mortgage loans and does all of the heavy lifting without any outside forces. In other words, KeyBank physician loans are underwritten by the bank, originated by the bank and serviced by the bank. This streamlines the process and makes it more efficient for borrowers.

Available in many states and no time limits

One of the top perks of working with a national and established bank like KeyBank is that they serve borrowers in many states. As of this writing, physicians and dentists who live in 37 states, plus the District of Columbia, might be eligible for a KeyBank physician loan.

The sheer number of states it serves opens up possibilities for many borrowers interested in a doctor loan program. Additionally, Keybank doesn’t have time limits, such as being within 10 years of completing training, as is the case with some other lenders.

High maximum loan amount and low rates

You’ve probably read the headlines that home costs are rising as are interest rates. This can make homeownership feel out of reach. But with a KeyBank physician loan, the maximum loan amount is up to $3.5 million.

Although it’s always a smart idea to only borrow what you can reasonably afford within your budget, this can help you navigate buying a home in this high-cost environment. KeyBank also generally offers below-market rates making homeownership more affordable.

KeyBank physician loan cons

Higher monthly payments

On one hand, having access to up to $3.5 million can mean more possibilities and opportunities. On the other hand, it can mean higher monthly payments. That in and of itself might not be a bad thing, if you can afford it.

But if you borrow too much, it can topple the balance and lead to a high debt-to-income ratio (DTI). This could result in paying more interest, overextending your budget and leaving limited funds for savings, investing, or “fun”.

Limited profession and visa eligibility

Some other physician mortgage lenders may allow optometrists or veterinarians to qualify. KeyBank generally works with only doctors and dentists, so a fairly narrow doctor definition.

However, KeyBank does work with qualifying candidates who have an H-1B visa. Unfortunately, that’s the only visa type that’s eligible for the KeyBank physician loan. So, if you have a different type of visa, KeyBank isn’t a viable lender at this point in time.

Not eligible for multiple units

To qualify for a KeyBank physician loan, the property must be a single unit (such as single-family homes), a condo, or planned unit development. Additionally, primary residences and second homes are also eligible. If the home is a two-unit property or more, this home loan program doesn’t qualify.

How to apply for a KeyBank physician loan

If you’re interested in moving forward with a KeyBank physician loan here are next steps.

Step 1: Review eligibility requirements

Before applying for a physician mortgage loan, review the eligibility requirements. KeyBank allows residents, fellows, and attending doctors and dentists to apply for their specialized home loan program. Plus, with 37 states and D.C., KeyBank serves much of the nation.

Starting a new job? You can still apply 90 days before your start date, with proof of an employment contract.

Step 2: Reach out to a KeyBank representative

Once you confirm eligibility, reach out to a KeyBank representative who can walk you through the KeyBank physician loan process.

Step 3: Get your financial documents in order

When applying for a KeyBank physician loan, you can contact a representative regarding the specific paperwork you’ll need to submit for your application. However, getting financial documents in order is part of the process to assess your eligibility and see how much you can afford. Some of these documents may include:

• Tax returns.
• Pay stubs, showing proof of income.
• Employment contract.
• Business profit and loss statements.

Also, check your credit score and credit report at AnnualCreditReport.com beforehand to see where your credit stands and correct any potential errors. Additionally, pay off credit cards in full to help your credit.

Step 4: Apply for a KeyBank physician loan

After gathering everything, you can officially apply for a KeyBank physician loan. You can choose from fixed interest rates or variable interest rates if approved. Fixed rate mortgages have 10-, 15-, 20-, 25- or 30-year terms.

When it comes to adjustable rate mortgages (ARMs), you can get a 5/6 ARM, 7/6 ARM or 10/6 ARM. In addition to the loan terms, review closing costs and fees, and ask any questions you might have before everything goes through.

Should you apply for a physician mortgage with KeyBank?

KeyBank is one of the premier national banks that offers physician mortgage loans. Available in many states for doctors and dentists, KeyBank allows borrowers good rates and flexible terms.

Since it does all of the underwriting and servicing, you can work with the bank to have your questions answered. To get started, fill out the mortgage form below or check out our full list of physician mortgage lenders and loan options.