6 Best Physician Mortgage Loans in Arizona: Zero Down and Flexible Underwriting

As one of the fastest-growing states in the U.S., people are flocking to Arizona to enjoy its desert landscape and overall low cost of living. With about 18,875 practicing physicians across the state, it’s a great place to live with growing healthcare opportunities.

But like most of the country, populated areas of the Grand Canyon State, such as Phoenix, have experienced significant increases in housing costs due to limited inventory.

According to the Arizona Association of REALTORS’ housing report, the median home sales price was $319,707 in February 2023. That’s actually a 2.3% decrease from last year, likely due to the fed increasing mortgage interest rates throughout the last year. However, it's still a 28.4% increase from the pre-pandemic median home sales price (in February 2020).

With rising housing prices, homeownership can feel even more out of reach. But doctors, dentists and certain other high-earning professions can take advantage of Arizona physician mortgage programs that offer no-down-payment options and flexible underwriting guidelines — meaning your timeline for purchasing your dream home could be a lot sooner.

Let’s look at how you could benefit from a physician mortgage loan in Arizona.

How do Arizona physician mortgage loans work?

Physician home loan programs are no (or low) down payment financing solutions specifically for medical doctors and dentists. However, some programs extend eligibility to other professions with high salaries that generally require a large student debt load. For example, pharmacists and veterinarians might qualify, depending on the lender.

Main benefits of using a physician mortgage program

Here are some of the primary perks of using this exclusive mortgage program:

• Up to 100% financing. Arizona physician mortgage programs offer $0 down and other low down payment loan options. Therefore, you won’t need to spend years saving up for a large down payment.
• No private mortgage insurance (PMI) requirement. Regardless of your down payment amount, physician mortgage loans have no PMI. This benefit alone can save you thousands of dollars each year.
• Favorable treatment of student loans. Mortgage lenders look at your debt-to-income ratio, or DTI for short, as part of their underwriting requirements. But student loans are treated differently with a physician home loan. Depending on the lender, they might use your actual income-driven repayment (IDR) monthly amount, a percentage of your loan balance or exclude deferred loans altogether.
• Relaxed income history requirements. Haven’t started your new position yet? Most physician mortgage programs allow eligible borrowers to use an employment contract as proof of future income. Generally, the contract must have a start date from 60 to 90 days of closing, depending on the lender.
• Competitive alternative to a jumbo loan. If you’re looking to borrow more than the conventional loan limit ($647,200 for most counties across the U.S.), then you might be able to secure a lower interest rate with a doctor home loan rather than using a jumbo loan.

Because this type of program has more flexible underwriting guidelines, you’ll likely qualify for a larger loan amount than you would with a conventional mortgage. Be diligent about what you can realistically afford for a mortgage payment to avoid financial problems down the road.

If you want to get quotes, the easiest way is to use our form below. Keep reading of course to get more details of the banks' programs in Arizona.

6 Lenders that offer a physician mortgage loan in Arizona

If you’re looking to put down roots in Arizona, explore these top physician mortgage lenders.

We’ve included contact information for our partner lenders, so you can speak directly with a knowledgeable lender who understands the physician mortgage process.

1. BMO Bank, N.A.

Arizona residents, fellows and existing or newly licensed medical doctors can apply for the physician mortgage program with BMO Bank, N.A.. Eligible degree designations include MD, DDS, DMD or DO designation.

Financing options include:

• 0% down for up to $1 million.
• 5% down for up to $1.5 million.
• 10% down for up to $2 million.

If you’ve been in practice for more than 10 years, you’ll be limited to 90% financing.

For new doctors and dentists, you’ll need to provide evidence of employment with a start date within 90 days of loan closing.

2. KeyBank

The KeyBank medical professional mortgage loan provides up to 100% financing for eligible Arizona medical doctors and dentists.

Loan amounts are available for up to $3.5 million to purchase or refinance a primary residence or second home.

If you have an eligible KeyBank checking and savings account, you might qualify for a 0.25% interest rate discount on your mortgage.

3. Regions Bank

This program is most definitely something worth looking into for Arizona medical professionals, due to no required PMI and the option for Regions Bank (with review) to exclude some deferred student loan payments from your DTI ratio, making it easier to qualify for the mortgage amount you are seeking.

Eligible applicants include attorneys and many in the healthcare field, such as pharmacists, nurse anesthetists, nurse practitioners, physician assistants, veterinarians, chiropractors, optometrists, podiatrists, MDs, DOs, DMDs and DDSs. Residents and fellows are also eligible.

30 and 15-year fixed-rate and 10, 7 and 5-year ARMs options are available, as are construction-to-permanent loans. 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 90 days before the listed start date on your employment contract or date of transferred employment.

The program is not open to non-permanent visa holders at this time.

4. UMB Bank

UMB Bank’s Doctorate Professional Mortgage Loan offers no required private mortgage insurance (PMI), up to 80% cash-out refinancing, no age restrictions, and low down payment options to those with an MD, DO, DDS, DMD, OD, and PharmD, as well as attorneys.

Borrowers must have an employment contract or signed offer letter, a copy of their license, and close within 60 days of contract acceptance.

Financing options include:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10% down for up to $2 million

If you are a resident, don't despair, you are still eligible. However, in order to be accepted by this program, you must have a minimum household income of $150,000.

15, 20, and 30 year fixed-rate and 5/1, 7/1, and 10/1 year adjusted-rate mortgage options are available.

For more information, contact Andrew Berry.

5. U.S. Bank

Physicians, residents, fellows, and lawyers with a minimum credit score of 710 might qualify for the U.S. Bank doctor mortgage loan. Eligible degree designations include MD and DO.

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

Depending on your loan amount, you’ll need three, six or 12 months’ worth of cash reserves.

Additionally, your DTI ratio will include either your actual IDR monthly payment or 2% of your outstanding loan balance if your loans are in deferment.

6. Wintrust Mortgage

If you're a medical professional in Arizona, you'll find Wintrust Mortgage's Doctor Loan Program can fit your needs. The program is available to those with an MD, DO, DPM, DDS, DMD, Chiropractor, or PharmD. It's also a good choice if you're nearing the end of your residency with six months or less to go.

Arizona's medical professionals can access loans up to $3 million, with financing options that include:

• 100% for up to $850k
• 97% for up to $1.25 million
• 95% for up to $1.5 million
• 90% for up to $2 million
• 80% for up to $3 million

You'll also have the option to use future income if the closing is within 90 days of starting employment. The property types eligible for these loans include single-family residences, townhomes, and condos, as long as they are the primary residence.

For more information about this program, contact Mike DeRaspe.

Banks that used to offer a Physician Mortgage in Arizona

1. Evolve Bank

Evolve Bank used to offer a physician loan, but shed their program.

Is an Arizona doctor home loan right for you?

Arizona physician mortgage loan programs offer exclusive benefits to eligible borrowers, including no PMI requirement and $0 down financing options.

By using this type of mortgage program, you can avoid draining your savings on a large down payment. Instead, that money can be used for the many costs of purchasing real estate, such as furnishing or renovating your new home. Alternatively, you can use it for other financial goals, like paying off your student loans faster or investing for retirement.

We recommend reaching out to at least two physician mortgage lenders to secure the best interest rate. Compare offers with other mortgage programs you might be eligible for, such as an FHA loan or VA loan.

To get started, use our doctor mortgage loan finder to get in direct contact with lenders who are ready to serve you.