- MD, DO, DDS or DMD or other doctor and dentist degrees might qualify for a physician mortgage loan with Lake Michigan Credit Union.
- The program is also open to doctors and dentists enrolled in or who have completed residency.
- Deferred student loans aren’t included in the calculations.
- No private mortgage insurance (PMI) requirements.
- Doctor mortgage programs often recommend a minimum FICO credit score of 700.
Medical professionals, such as physicians, podiatrists and dentists, often have the potential for a high income. However, getting an advanced degree as a healthcare professional can result in a high amount of medical student loan debt.
Even if you can handle your monthly student loan payments, making monthly payments for a home might be hard. Plus, meeting the underwriting requirements can be difficult.
Lake Michigan Credit Union (LMCU) offers a mortgage program designed to help doctors and dentists qualify for a primary residence. Let’s take a look at the details so you can decide if it’s right for you.
Lowest down payment
0% for up to $1 million
5% for up to $1.25 million
10% for up to $1.5 million
20% for up to $2 million
10% for up to $1.25 million
15% for up to $1.5 million
20% for up to $2 million
Maximum loan amount
How they treat student loans
Deferred student loan debt doesn’t count toward qualification
Degrees that qualify
MD, DO, DDS, DMD, residents, other doctor degrees
MI and FL
Lake Michigan Credit Union physician mortgage loan details
Lake Michigan Credit Union was founded in 1933 by a school teacher from Grand Rapids as a teacher credit union to help teachers through the Great Depression. It’s an NCUA member and equal housing lender.
You must live, work or worship in the lower peninsula in Michigan or anywhere in Florida to join LMCU or have an immediate family member who is a member. You can also join by donating to the ALS Foundation.
What mortgage product do you need?
Your Occupation As Of September 2023
Are You Currently Working With a Realtor?
Home Price Range
Preferred Down Payment
Stage You're At in the Home Buying Process
When Do You Want a Mortgage Approval?
How Many Banks Would You Like Quotes From?
Any Bankruptcies or Short Sales?
State Where You Plan to Purchase
Metro Area Where You Plan to Purchase
Would You Like to Add Any Additional Details?
LMCU physician mortgage loan: Pros and cons
When reviewing your home buying options, including those for medical professionals, review the origination fees and closing costs. Pay attention to disclosures and fine print. Check with your loan originator if you have questions.
Like any mortgage lender, LMCU offers advantages and disadvantages. Here’s what to consider when choosing a doctor loan.
Lake Michigan Credit Union physician mortgage loan pros
With LMCU, you can access doctor loans and other loan options with low interest rates, relaxed underwriting criteria and other features.
0% down payment options
If the purchase price of your home is less than $1 million, you might qualify for 0% down. This represents the ability to have 100% loan-to-value (LTV).
Different mortgage options
Lake Michigan Credit Union offers different loan options, including fixed and adjustable-rate mortgages. You can get a 15 or 30-year fixed rate, and adjustable-rate options include three-, five- and seven-year ARMs.
Use a physician mortgage loan calculator to determine what works best for you. As a dental or medical professional, you might have access to a jumbo loan or other loans without some of the stricter requirements often seen with a conventional mortgage or FHA loan.
One cost of having a low down payment is private mortgage insurance (PMI). However, LMCU is willing to work with medical professionals to get a mortgage that doesn’t require mortgage insurance, even with a down payment of less than 20%.
Lake Michigan Credit Union physician mortgage loan cons
Before moving forward with LMCU or any other financial institution for mortgage products, you should understand the downsides of their programs. A physician loan program has disadvantages, and you must carefully consider what works best for your new home financing.
Small down payments often mean higher monthly payments
Because doctor and dentist loan programs often allow you to buy an expensive home with no money down and looser requirements, it can be tempting to get a jumbo loan. However, if you end up house poor because of your payments, you might not be happy in the long run.
Limited transparency around its doctor loan program
Much information about the LMCU loan program and underwriting process isn’t readily available on LMCU.org. You might need to speak with a loan officer to see if you qualify and to verify that your medical degree is accepted.
Credit score minimum
Although a minimum FICO score isn’t listed for the LMCU doctor loan program, many other programs expect you to have a score of at least 700. Good credit is required for the best interest rates.
Some other loan programs, like FHA and VA loans, have lower purchase price limits, but more flexible credit score requirements.
How to apply for an LMCU physician mortgage loan
Whenever you buy a home, compare three to five lenders. Look at criteria like income ratio, down payment, the underwriting process and other terms and factors.
If you decide Lake Michigan Credit Union is best for your needs, contact them to start your mortgage application.
Step 1: Contact LMCU
To start the approval process for a physician or dentist loan, you or your real estate agent can reach out to a loan officer.
Before you make your call, be ready with the following information:
- Phone number
- Loan purpose
- Loan amount
- Purchase price
- Property location (including ZIP code)
- Proof of employment
Step 2: Gather the necessary documentation
Lenders want specific information and documentation with your application. Your mortgage loan officer at Lake Michigan Credit Union can give you more information about potential documents, including:
- Purchase agreement.
- Employment contract.
- Recent bank statements.
- Tax returns.
- Driver’s license or other ID.
- Other documents, as requested.
Whether you’re a pro or a first-time homebuyer, getting the documents together ahead of time can make the process faster.
Step 3: If approved, accept the loan
If LMCU approves you, it‘s time to decide whether to accept the home loan and its terms. Confirm that the paperwork matches what you were told. If everything looks right, move to the closing and claim your home.
Should you apply for a physician mortgage loan with Lake Michigan Credit Union?
If the numbers work for your budget, the dentist and physician mortgage loan programs at LMCU might help you get into a home that fits your needs.
Review your financial situation and determine if you’re truly ready to buy a home. Then, compare LMCU to other physician mortgage lenders. You can also fill out the form below for more information about comparing doctor mortgage programs.