What you need to know:
- A physician mortgage loan in Louisiana offers up to 100% financing with no private mortgage insurance (PMI) requirement.
- An MD, DO, DDS, DMD or DVM is generally required, but some physician mortgage lenders have expanded eligibility requirements to include other professions.
- Physician mortgage loans can benefit young medical professionals with minimal savings and high student loan debt.
Louisiana provides a unique blend of iconic architecture, rich musical heritage and festival fun to keep residents and visitors busy year-round. But finding a home in the Bayou State has become more difficult as housing costs continue to rise.
The median sales price for a single-family home in Louisiana increased by 11.4% from 2020 to 2021, as reported in the Louisiana REALTORS Annual Report. Meanwhile, the number of homes available for sale plummeted by 32.1%.
Additionally, prospective homeowners must tackle traditional home-buying obstacles, such as saving up for a large down payment and meeting strict underwriting criteria.
But select professions have access to a little-known homeownership program called a physician home loan. Read on to learn more about physician mortgage loans in Louisiana.
Top benefits of a physician mortgage loan in Louisiana
Medical doctors, dentists, veterinarians and other select professions can use a physician mortgage loan to purchase a home with no down payment. Other benefits include:
- Down payment options range from 0% to 15% without requiring PMI.
- Student loan debt is expected, so it’s treated more favorably when calculating your debt-to-income ratio (DTI).
- Ability to buy a home before starting a new position by showing proof of an employment contract with a start date within two to three months of closing (varies by lender).
- Loan amounts available higher than the conventional limit ($647,200), allowing you to purchase a home in the $750,000 to $2 million range while maintaining competitive interest rates.
This special homeownership program is intended for the purchase or refinance of a primary residence. Depending on the physician mortgage lender, a second house or vacation home might qualify.
Additionally, some lenders allow two-unit properties to qualify if you plan to occupy one of the units, which can give you the opportunity to house-hack your mortgage by renting out the other space. However, investment properties are explicitly excluded.
To learn more, use the form below or keep reading about top physician loan lenders in Louisiana.
What mortgage product would you like a quote for?
What is Your Occupation Status Currently?
Are you currently working with a realtor?
Are you a veteran?
What most closely represents the price range of the house you’re searching for?
What is your preferred down payment?
What stage are you at in the home buying process?
How soon do you hope to secure a mortgage approval?
How many banks would you like quotes from?
Have you experienced any bankruptcies or short sales?
State where you want to purchase your home
Metro area where you would like to purchase your home
Would you like to add any additional details?
6 Louisiana physician mortgage lenders to consider
If you’re ready to find a new home in the Bayou State, use this list of best physician home loans in Louisiana to expedite your mortgage search.
1. BMO Harris Bank
Louisiana medical doctors, dentists, residents and fellows can use the BMO Harris physician loan program to access up to $2 million in home financing with little money down.
Financing options include:
- 0% down for loan amounts up to $1 million.
- 5% down for loan amounts up to $1.5 million.
- 10% down for loan amounts up to $2 million.
However, these low down payment options are reserved for physicians with less than 10 years of experience. You’ll need a minimum 10% down payment (regardless of the loan amount) if you completed your residency more than a decade ago.
2. First Horizon Bank
First Horizon Bank’s physician mortgage program is available to MD, DO, OMS and DPM physicians with all levels of experience in Louisiana.
Financing options include:
- 0% down for loan amounts up to $1.5 million.
- 5% down for up to $2 million.
- 10% down for up to $2.5 million.
Most physician mortgages are designed for new physicians, so this is a great option for physicians who are in the latter stages of their careers. They also offer H-1B visa non-citizens loans with up to 100% financing.
3. Flagstar Bank
Flagstar’s program offers zero down financing and no PMI, so this is a physician mortgage program worth considering. An additional benefit is that H-1B visa and/or green card holders are eligible. 1099 workers are also eligible to apply; however, they must supply at least two years’ worth of income documentation to be approved.
- 0% down for up to $1 million
- 5% down for up to $1.5 million
Flagstar Bank allows anyone with the following degrees to apply: medical resident, MD, DDS, DMD, OD, Doctor of Pharmacy, DPM, DO, RN, physician assistants, nurse practitioners, clinical nurse specialists, ATP pilots, CPA, attorneys, and veterinarians. To be eligible, you need to be 10 years or less from starting your career.
To be approved for 5% down, you must have at least a credit score of 700. To be approved for 0% down, you must have at least a credit score of 720.
Contact Tish Kumar. Email Tish.
4. U.S. Bank
Financing options available from U.S. Bank include:
- 5% down for up to $1 million
- 10% down for up to $1.5 million
- 15% down for up to $2 million
Loan amounts up to $2.5 million are available with a traditional down payment of 20% to 25%.
Contact Jonathan Brozek (NMLS #850168) for more information.
5. Red River Bank
Red River Bank was founded in 1999, and now has community bank locations across the state of Louisiana. Its physician mortgage program provides up to 100% financing for loan amounts up to $1 million.
As part of its private banking services for physicians, Red River Bank also customizes home
equity loans and lines of credit, interim construction loans, vacation home loans and investment property loans.
6. Regions Bank
It is definitely worth looking into the Regions Bank Medical Professional Loan program, if you want to avoid PMI and don’t want your eligibility based on how long you’ve been practicing.
The bank can also exclude some deferred student loan payments from your DTI ratio to help you qualify for a mortgage.
Eligible applicants include attorneys, pharmacists, nurse anesthetists, nurse practitioners, physician assistants, veterinarians, chiropractors, optometrists, podiatrists, MDs, DOs, DMDs and DDSs. Residents and fellows are also eligible, but non-permanent visa holders aren’t eligible at this time.
Financing options include:
- 0% down for MD, DDS and DO.
- 3% down for pharmacists, nurse anesthetists, nurse practitioners, physician’s assistants, veterinarians, chiropractors, optometrists, podiatrists and licensed attorneys.
You can close up to 60 days before the listed start date on your employment contract or date of transferred employment.
Contact Regions Bank for more info. There is no credit check needed for a rate quote. Regions Bank offers fast and friendly consultations.
Is a Louisiana physician mortgage right for you?
A physician mortgage loan can fast-track your home buying process since you won’t have to save for a large down payment or wait until you can meet conventional underwriting requirements.
If your profession makes you eligible for a physician mortgage program, it’s worth exploring with at least two lenders to compare options.
Most physician mortgage programs require a minimum credit score of 700 to qualify for 100% financing. However, some lenders begin eligibility requirements or have other low down payment alternatives for borrowers with a 680 or higher.
We encourage you to reach out to any of the loan officers listed above or fill out the form below to start receiving quotes for your home purchase or refinance.