Midland States Bank Physician Mortgage Loan Review

Homeownership right after you finish medical school can feel like it might never happen. There’s a good chance you finished school with high student loan debt, and might not be financially confident about buying a home.

Midland States Bank’s physician loan is aimed at doctors, with underwriting criteria that’s different from what you’d see with more traditional home loan borrowers.

Midland States Bank physician mortgage loan details 

Along with more conventional mortgages, Midland States also offers doctor loan programs. Based mainly in Illinois and Missouri, it’s a member-FDIC and an equal housing lender.Midland States Bank offers doctor mortgage loans to medical doctors, as well as to podiatrists. It offers competitive rates and other financial services, including checking accounts and savings accounts.

Midland States Bank physician mortgage loan: Pros and cons 

As you compare mortgage lenders, make sure you understand all their terms, including closing costs and disclosures, as well as any payment terms and insurance requirements to consider.

Review the pros and cons of Midland States Bank before making a decision. 

Midland States Bank physician mortgage loan pros

With Midland States Bank, you can access physician loans and other financial products with relaxed underwriting standards and competitive interest rates. You can also access lines of credit and other financial services in addition to your home mortgage.

Up to 100% financing

A 0% down payment isn’t offered by all physician loan programs, although many offer this choice. With Midland States, you can get 100% financing up to $500,000. This is less than some other programs; however, the cap might help you avoid getting more home than you can afford.

Available for students entering residency

As long as your residency begins within 90 days of your new home purchase, you can get a doctor loan with Midlands Bank. This can be helpful for residents with employment contracts who might not have the typical income for a more traditional mortgage loan.

Before moving forward, though, consider your wealth management strategy. Use a physician mortgage loan calculator to see if buying a home during residency makes sense for you.

No private mortgage insurance

Most doctor loan programs won’t charge private mortgage insurance (PMI). Midland States Bank doesn’t charge PMI, even if your down payment is less than 20% of the home’s purchase price.

Midland States Bank physician mortgage loan cons

When reviewing loan options, you also need to pay attention to the downsides. Here are some of the drawbacks to a doctor loan with Midland States Bank. 

Small down payments can lead to higher monthly payments

Physician loan programs can make it easier to get a bigger mortgage with a lower down payment. It can lead to higher monthly payments overall. Plus, once you start repaying your student loans, the combination can feel overwhelming. It can lead you to feel house poor.

Not much transparency around its doctor loan program 

Unfortunately, a lot of the information about this loan program and underwriting process isn’t readily available online. You might need to contact a loan officer or speak with someone about what mortgage options are available, and specifically ask about the physician loan program.

Limited loan types

Although it’s possible to get fixed-rate and adjustable-rate mortgages with Midland States Bank, there aren’t a lot of other choices. The loans are for purchase only, so you might not have access to refinancing. You might look into FHA loans or VA loans if you qualify for other types of mortgage programs.

How to apply for a Midland States Bank physician mortgage loan 

As you decide on a lender, make sure to compare three to five choices. Don’t forget to compare doctor mortgage loan terms to the possibility of a traditional mortgage government-backed program.

If you decide that Midland States Bank is the best program for you, follow these steps:

Step 1: Contact Midland States Bank

Begin by having your real estate agent reach out to a bank representative. You can also request information through midlandsb.com or fill out the form below.

Be ready with the following information:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Property location 
• Property zip code 
• Degree
• Employment contract
• Proof of medical license

Step 2: Gather necessary documentation 

Lenders require certain documentation for home loans. Your mortgage loan officer can fill you in. Some common documents you might need include:

• Purchase agreement
• Employment contract
• Pay stubs

• Recent bank statements
• Tax returns
• Driver’s license or other ID
• Other documents, as requested

Whether you’ve done this before or you’re a first-time homebuyer, having what you need ahead of time can help you with a faster process. 

Step 3: If approved, accept the loan 

If Midland States Bank approves you, double-check the terms and confirm that the disclosures and other closing terms match what you expect.

Should you apply for a physician mortgage loan with Midland States Bank? 

If the numbers work for you, the doctor mortgage loan program at Midland States Bank could be a good choice. Also, consider your wealth management strategy to see if you’re ready to buy a home. To get started, compare Midland States Bank to other physician mortgage lenders.