What you need to know:
- An Alaska physician mortgage comes with high loan limits and options for up to 100% financing.
- This exclusive program does not require private mortgage insurance (PMI), which could mean big savings.
- Physician home loans can make it easier to qualify for a mortgage, even if you have high student loan debt.
In a competitive housing market, the dream of owning a home as a medical professional can feel out of reach. You may think doctors or dentists who graduate with large student loan balances won’t have many opportunities for purchasing a new home.
However, thanks to a secret weapon called the physician mortgage loan, that is not true. This type of home loan is specifically designed for those in professional health fields like doctors, nurses, dentists, veterinarians and pharmacists. Because of this, it’s often called a doctor mortgage. Thankfully, it’s available to more than just doctors.
Some banks and lenders work specifically with high-earning, high-student debt professionals like you to provide an affordable home loan in Alaska. Now is a great time to take advantage of a doctor mortgage loan in the Last Frontier State. Let’s explore the benefits and features of an Alaska physician mortgage that you need to know.
Alaska physician mortgage loan benefits and features
A physician mortgage loan in Alaska offers many financial benefits that are attractive to medical professionals when purchasing a home, even those with student loan debt. Here are some of the main advantages of doctor mortgage loans in Alaska.
- No money down financing options available.
- Up to 100% financing on loans as high as $1 million or more.
- No PMI (private mortgage insurance) requirements.
- Flexible debt-to-income underwriting guidelines for those with high student loan debt.
- Allowances for new physicians to close before they start their new position.
- Relaxed income history requirements for residents or fellows.
- Lower interest rates than a JUMBO loan.
In many cases, interest rates and terms for physician home loans are comparable to conventional mortgages but have many more options. Physician mortgages have larger loan limits and more attractive interest rates than conventional mortgages. They may even have lower down payment options versus FHA loans.
Plus, borrowers can avoid PMI, skip putting money down and get lower interest rates than most JUMBO mortgages. For these reasons, an Alaska physician mortgage loan can be a much more budget-friendly option for those with careers in medicine.
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Top physician mortgage lenders in Alaska
After doing a lot of research, here are the top physician mortgage lenders in Alaska and the features they offer doctors, attending physicians and those still in residency. Some banks will also allow dentists, nurses and veterinarians to purchase a home under their physician mortgage programs.
1. U.S. Bank
With U.S. Bank’s physician mortgage program, eligible MDs, DOs, residents and fellows could get up to 95% financing on a home loan. Plus, U.S. Bank customers could get access to very attractive savings and reduced loan fees.
Mortgage financing options from U.S. Bank:
- 5% down for up to $1 million
- 10% down for up to $1.5 million
- 15% down for up to $2 million
2. Flagstar Bank
Flagstar Bank offers doctor mortgage loans for home purchases and refinancing in all 50 states for up to 100% financing with no PMI.
Mortgage financing options from Flagstar Bank:
- 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 residents, 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, one must be 10 years or less from starting one’s career. There is no 30 year fixed rate option.
The only mortgage type available is adjusted-rate mortgages (ARMs).
H-1B visas and/or green card holders are eligible.
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.
If you’re a 1099 worker, you need to supply documentation of at least two years of income.
Contact Tish Kumar. Email Tish.
KeyBank’s exclusive Medical Professional Loan program is an excellent choice for physicians and dentists. They have one of the highest lender limits in the country, with loan amounts available up to $3.5 million. Medical doctors and dentists can also refinance their current home or purchase a second home with KeyBank.
Mortgage financing options from KeyBank:
- Up to 100% financing on qualified loans.
- Loan amounts up to $3.5 million.
- No PMI required.
4. S&T Bank
With S&T Bank’s Professional Mortgage Program, physicians and other eligible professionals can get a loan for 5% down with no required maximum loan amount. No restrictions apply on a physician’s age. Newly self-employed (1099 independent contractor) physicians are allowed with a provided employment agreement.
To be eligible, one must be a medical resident, medical fellow, attorney, or hold a MD, DDS, DMD, DO, DVM, or PhD in a non-medical science. H-1B visas and/or green card holders can be served. VA loans are also available; although, you will find better deals with their Professional Mortgage Program, by comparison.
A 700 or higher FICO score is recommended when using S&T Bank.
Cash out refinances are limited to 80% LTV (Loan-to-Value) and no cash out limit.
30, 20, 15, and 10 year fixed rate options and 5 and 7 year ARM’s options are available.
Contact: Mike Wagner. Email Mike.
If you want even more choices for doctor mortgage loans in Alaska, check out our full list of the best lenders in all 50 states.
Is a doctor home loan in Alaska right for you?
Alaska is one of the least populated states in the country, with only about 731,000 residents. However, a less populated state can be a real advantage when buying a home or refinancing.
Less competition for jobs and housing can mean getting more real estate for your money. This is why now is the perfect time to apply for a doctor mortgage in Alaska and make your dreams of homeownership a reality.
Plus, if you are looking for a more urban lifestyle in Alaska, you can live in towns like Anchorage and still pay less for a house than in Washington state. According to Zillow, the average cost of a home in Alaska is $315,353, with home values increasing only about 5% in the past year.
Alaska faces unique challenges due to a more rural lifestyle and cold temperatures. Despite this, Alaska physician home loans aren’t any less appealing for many practicing physicians. In fact, nearly 2,000 active physicians call the great state of Alaska home.
It’s a wonderful state to live in if you seek adventure and a healthy outdoor lifestyle. Alaska has one of the most picturesque landscapes in the world, thanks to rugged wilderness and unspoiled beauty. Whether you’re a practicing physician or entering a residency program in Alaska, a doctor mortgage can help make it happen.
To get started, fill out the form below or choose from our list of the preferred loan officers mentioned above.