What you need to know:
- Physicians and dentists can apply for Massachusetts physician mortgage loans that offer generous financing options with no down payment.
- A physician mortgage loan doesn’t require traditional private mortgage insurance (PMI).
- Other high-earning professionals may qualify for a physician mortgage loan, depending on the lender.
The average Massachusetts physician earns about $188,000 a year, with some earning much more and some earning less. While that’s a great salary, physicians typically carry high six-figure student loan debt that can make major milestones like owning a home more challenging.
According to the Massachusetts Association of Realtors, the median price for a single-family home in August 2021 was $552,000. If you look at historical data, the median price was $120,000 less just two years ago. As housing prices continue to soar, securing a mortgage may become more difficult for medical professionals carrying high student loan balances.
Fortunately, many doctors and dentists across the state might qualify for a Massachusetts physician mortgage loan with huge benefits.
Read on to learn about physician mortgage loans in Massachusetts.
How do Massachusetts physician mortgage loans work?
Physician mortgage loans, often called “doctor mortgage loans”, are designed to meet the needs of high-earning, high-debt carrying medical professionals. They create a pathway to homeownership without the burden of a large down payment. But they come with other exclusive perks that can save you money.
Conventional loans typically require a 20% down payment. Otherwise, lenders require the homeowner to carry private mortgage insurance, or PMI for short. Depending on your home loan, PMI can cost hundreds of dollars each month.
Massachusetts physician loans don’t require PMI, regardless of your down payment amount. In fact, many physician mortgage lenders offer 100% financing (meaning $0 down) — while others might require 5% to 15% down depending on the loan amount you want to finance.
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Additionally, this type of loan makes owning a home more attainable by treating student loan debt more favorably when assessing your credit risk. It also allows new physicians to secure a mortgage with proof of future income (e.g. job offer letter) instead of having to wait.
The main downside of a physician mortgage — and it’s a big one if you aren’t careful — is that they have loan limits often in the millions. That’s great if you can afford a million-dollar home. But if you can’t, you might still get approved for an amount well over what your budget will allow.
10 Massachusetts physician mortgage lenders to consider
If you’re still interested in pursuing a Massachusetts physician mortgage loan, consider contacting a mortgage loan officer from one of these lending institutions.
1. Berkshire Bank
Founded in 1846, Berkshire Bank has grown into the largest regional bank in Massachusetts. It offers physician mortgages through its Doctor’s Advantage Home Loan.
It caters to new and established doctors looking to get a mortgage or refinance an existing home loan. Through the Doctor’s Advantage Home Loan, you can get as little as 5% down on mortgages up to $850,000. Berkshire Bank also offers home equity loans and lines of credit.
Eligible homebuyers include physician, dentist, and veterinarian residents (or fellows currently employed in residency of fellowship), practicing physicians (MD, DPM, or DO), practicing dentists (DDS, DMD), oral surgeons, and practicing veterinarians. Practicing doctors must be out of residency/internship/fellowship for less than 10 years. Non-practicing doctors, such as those in academia or research, are not eligible.
Berkshire Bank also offers home equity loans and lines of credit. Eligible properties include single family, condominiums, planned urban development, and non-warrantable condominiums. Private Mortgage insurance is not required and the maximum DTI ratio is 45%.
Financing options include:
- 0% down for up to $1 million
- 5% down for up to $1.25 million
- 10% down for up to $2 million
Berkshire has 30 year fixed and 15 year fixed options, as well as the 7/1 and 10/1 ARM Products.
Reserves are required and the range is 2-6 months of your monthly mortgage payment.
1099 independent contractor work for less than 12 months is allowed.
Projected income is acceptable for qualifying purposes when a borrower is scheduled to start a new job within 90 days of the loan closing.
2. Huntington National Bank
Massachusetts doctors, dentists, podiatrists, ophthalmologists and veterinarians can access Huntington Bank’s physician mortgage loan.
Financing options include:
- 0% down for up to $1 million.
- 5% down for up to $1.25 million.
- 10% down for up to $2 million.
Low down payment options are available for borrowers with a minimum credit score of 680.
Contact: Bill Kekatos, NMLS #216590
3. KeyBank
The KeyBank Medical Professional Loan provides up to 100% financing for purchases and cash-out refinances of primary residences and second homes.
Medical doctors and dentists might be eligible for fixed or adjustable-rate mortgages of amounts up to $3.5 million.
Eligible property types for this Massachusetts physician mortgage include single-family homes, attached or detached, condos or planned unit developments.
4. Evolve Bank & Trust
Evolve Bank’s doctor mortgage loan program offers home purchases and refinancing. With no required PMI, this is an attractive option for homebuyers.
Financing options include:
- 0% down for up to $1 million
- 5% down for up to $1.5 million
Careers eligible for this program include medical resident, MD, DDS, DMD, OD, Doctor of Pharmacy, DPM, DO, RN, physician assistants, nurse practitioners, clinical nurse specialist, ATP pilot, CPA, attorney and veterinarian. It is important to note that to be eligible, you must be 10 years or less from starting your career. Also, if you are a 1099 worker, two years’ worth of income documentation is required.
To be approved for 0% or 5% down, you must have at least a credit score of 700.
Contact: Tish Kumar
5. TD Bank
Doctors (MD and DO), dentists (DDS and DMD), podiatrists, oral surgeons, residents and fellows can use the TD Bank medical professional mortgage to buy a home with little to no money down.
Financing options include:
- 0% down for up to $750,000.
- 5% down for up to $1.25 million.
- 10.01% down for up to $1.5 million.
Contact: Neil Surgenor
6. Truist
The Truist doctor mortgage loan is available to eligible MD, DO, DPM, DDS or DMD physicians. Additionally, residents, interns and fellows in an MD, DO or DPM program might qualify for up to $750,000 in home financing.
Financing options for physicians with less than 10 years of experience include:
- 0% down for up to $1 million.
- 5% down for up to $1.5 million.
- 10.01% down for up to $2 million.
If you have 10 to 15 years of post-residency experience, you’ll be limited to 89.99% financing for up to $1.5 million. Physicians with more than 15 years of experience will need to have an existing relationship with its Medical Wealth Division to qualify.
Contact: Matt Albert
7. U.S. Bank
U.S. Bank’s physician mortgage program is available to lawyers and medical physicians, including residents, fellows, and doctors of osteopathy (DO). Dentists and nurses are not eligible at this time.
You can borrow up to $2.5 million, but you’ll need a minimum down payment:
Financing options include:
- 5% down for up to $1 million
- 10% down for up to $1.5 million
- 15% down for up to $2 million
Contact: Jonathan Brozek
8. Citizens Bank
The Citizens Bank Doctor Loan program provides up to $1.5 million in financing to eligible doctors and dentists. You might qualify for this Massachusetts physician mortgage program if you’re either:
- A licensed Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Dental Surgery (DDS) or Doctor of Dental Medicine (DMD) and have completed your residency within the last ten years, or
- A current medical resident, fellow or intern.
Financing options include:
- 5% down for up to $850,000
- 11% down for up to $1 million
- 15% down for up to $1.5 million
This program is available for purchases and limited cash-out refinances for your primary residence.
9. First Citizens Bank
First Citizens Bank provides up to 100% financing for purchases, new builds and refinancing your primary residence. This program is available to medical professionals with the following designations:
- MD, DO, DM, DPO, DDS and DMD, as well as
- Physician Assistant (PA), Certified Registered Nurse Anesthetist (CRNA), Certified Registered Nurse Practitioner (CRNP), or Doctor of Physical Therapy (DPT).
Other requirements for this Massachusetts physician mortgage loan program include:
- Minimum credit score of 700
- Proof of an employment contract or three years (or more) of tax returns
- Automatic payments from a First Citizens checking account
Note that First Citizens provides the option to split your mortgage into an 80/20 mortgage, but it isn’t a requirement. In this case, 80% of financing is through a traditional 15-, 20- or 30-year term mortgage and the remaining 20% is with a home equity loan.
10. Flagstar Bank
Flagstar Bank’s physician mortgage program offers qualifying medical professionals and other high-earning professionals the option of purchasing or refinancing on a primary residence.
Financing options include:
- 0% down for up to $1 million
- 5% down for up to $1.5 million
It’s important to note that a credit score of 700 is needed for the 5% down financing option and a credit score of 720 is needed for the zero down financing option.
Is a Massachusetts physician mortgage loan right for you?
Massachusetts physician mortgage loans have competitive mortgage rates and loan terms. But this exclusive type of loan also has significant perks for doctors and dentists.
You can realize your home-owning dreams much sooner with a physician mortgage considering you won’t have to spend years saving up for a large down payment.
Plus, you won’t tie up hundreds of dollars each month that would normally go to paying PMI with a conventional mortgage. That freed-up money can be used for home renovations, to pay down student debt or for making smart investments.
But these jumbo loans with relaxed requirements aren’t for everyone. It can be extremely tempting to buy more house than what you can afford, especially since physician mortgages often have high loan limits in the millions.
So, do your research and stick to your budget. Just because you get approved for more than you need, doesn’t mean you should sign for it — much like student loans.
Start your search for loan options by using our referral page for physician and dentist mortgage loans broken down by state.
