6 Best Physician Mortgage Loans in North Carolina

What you need to know:

• North Carolina physician mortgage loans are available to qualifying physicians and dentists with little or no down payment.
• A physician mortgage loan doesn’t require private mortgage insurance (PMI), which could save you hundreds of dollars each month.
• Physician mortgage loan programs have higher loan limits than conventional mortgage loans.

North Carolina’s rolling mountains and beautiful beaches make it a hot spot for tourists and property owners. 2020 data from the National Association of Realtors shows the median price for single-family homes in North Carolina was $251,859. But with a housing shortage in popular areas of the state, like Jacksonville and Greensboro, your NC dream home could come at a premium.

According to the Bureau of Labor Statistics, the average physician salary in North Carolina is just shy of $200,000. But when you consider that doctors and dentists often graduate with large six-figure student loan debt, a high salary isn’t always enough to meet mortgage loan requirements.

Fortunately, physicians, dentists and other medical professionals can take advantage of a physician mortgage loan. This type of loan considers the timeline of a physician’s career as a whole, including the likelihood of student loan debt and the potential for a high salary.

Never heard of a physician mortgage? Here’s what you need to know about physician mortgage loans in North Carolina.

How do North Carolina physician mortgage loans work?

With a traditional mortgage loan, you’re typically required to put forth a 20% down payment deposit or carry private mortgage insurance (PMI), which can cost hundreds of dollars each month. But with a physician loan, certain North Carolina medical professionals — and sometimes dental professionals — have access to more flexible down payment options, while still maintaining competitive interest rate loans.

There are many physician mortgage loans that don’t require a down payment at all. But in some cases, a small percentage is required for jumbo loans. However, regardless of whether a down payment is needed, PMI isn’t a requirement making a physician mortgage a big savings opportunity.

As an added bonus, credit factors are assessed with a physician’s career trajectory in mind (e.g. high earning potential and income stability), meaning your student loan debt will be treated more favorably than with a traditional mortgage.

Physician mortgage loans also come with high loan limits, sometimes in the millions. This means you might get approved for a lot more than you can realistically afford. So, stick to your budget and don’t chase more expensive homes just because the bank says you can.

6 Lenders that offer physician mortgage loans in North Carolina

The following North Carolina physician mortgage lenders are member FDIC institutions and have their own set of eligibility requirements and financing structure. From First Citizens Bank to KeyBank physician mortgage loans, you’ll find the basics of each loan program, but you’ll need to reach out to each lender for further specifics.

Note that North Carolina physician mortgage loans are usually intended for professionals who plan to live in the house, and not for rental or investment properties. However, some lenders might allow mortgages for a second home.

1. Fifth Third Bank

New and established doctors, dentists and veterinarians (MD, DO, DPM, DDS, DMD, DVM and OD) may be eligible for Fifth Third Bank’s physician mortgage loan program.

Established physicians and dentists, meaning those who have been employed for one year or self-employed for at least two years, might be eligible for:

• Up to $750,000 financing with no down payment
• Up to $2 million with a 10% down payment
• Fixed and adjustable-rate mortgage loans are available

Residents, fellows and new physicians also qualify for these same terms, except they’re capped at $1 million with a low down payment.

To learn more about the program, email Sandy Salas or call her at 708-564-3381.

2. KeyBank Mortgage

KeyBank’s physician mortgage program offers up to $3.5 million in financing for both physicians and dentists.

Depending on the loan amount, eligible borrowers may qualify for up to 100% financing with no down payment.

Note that KeyBank includes second homes as an eligible property type for its physician mortgage loan program. It also includes condos and planned unit developments.

To learn more about this program, email J. Mansisidor or call 757-926-0106.

3. Truist

The Truist doctor mortgage loan program provides low interest rates and favorable repayment terms to new and established physicians.

Financing options for practicing doctors (MD, DO, DDS, DMD or DPM) include:

• 0% down for loan amounts up to $750,000.
• 5% down for up to $1 million.
• 10.01% for up to $1.5 million.

Licensed residents and fellows are capped at a $750,000 maximum loan amount with up to 100% financing.

To find out more information, contact Matt Albert or call 336-439-3560.

4. Citizens Bank

Citizens Bank offers a doctor loan program that benefits licensed Doctors of Medicine (MD), Doctors of Osteopathic Medicine (DO), Doctors of Dental Medicine (DMD) and Doctors of Dental Surgery (DDS). But to qualify, you must have completed your residency within the last ten years or be a current medical resident, fellow or intern.

Financing options for Citizens Bank physician mortgage include:

• 5% down for loan amounts up to $850,000
• 11% down for up to $1 million
• 15% for up to $1.5 million

Borrowers can choose from fixed or adjustable-rate loan options.

5. First Citizens Bank

First Citizens Bank offers physician mortgage loans to medical professionals with the following designations: MD, DM, DO, DPO, DDS, PA, CRNA, CRNP and DPT.

The First Citizens Bank physician mortgage loan features include:

• 100% financing with no down payment
• Ability to purchase a primary residence, build your home or refinance an existing home
• Option to split your mortgage into an 80/20 mortgage (80% will be a first mortgage with 15-, 20- and 30-year terms, and 20% will be a home equity loan)

Additional requirements include a minimum credit score of 700 and a valid employment contract or at least three years of tax returns.

6. Regions Bank

Regions Bank’s physician mortgage loan is available to medical doctors, fellows, residents and designations like DMDs, DDS and DOs.

Its physician mortgage details include:

• 100% financing for up to $750,000.
• 95% financing for up to $1 million.

You also have the ability to close the loan before your start date.

Is a North Carolina physician mortgage right for you?

A North Carolina physician mortgage can help you qualify for a higher loan amount than a conventional loan. It can also give you the ability to buy a home with no money down and free up funds that would traditionally be needed for PMI payments.

But it can be tempting to financially overextend yourself, considering you’ll likely get approved for a higher amount than you would with a conventional mortgage. More house doesn’t equal more happiness, but it could mean more debilitating debt if you aren’t careful.

Use our referral page for physician and dentist mortgage loan options by state to start your search. But be sure to cast a wide net for lenders and consider all types of mortgage options that you’re eligible for before moving forward with a physician mortgage loan.