8 Best Physician Mortgage Loans in Delaware

With a population of just under 1 million residents, Delaware is a more affordable state than some of the other population centers of the Northeast. Many physicians, dentists, and other professional families choose The First State to get more home for the money. 

From 2021 to 2022, Delaware saw a modest but respectable growth rate of 1.35% in population, while other states and cities in the Northeast saw population declines. 

With 1,750 active physicians, as of 2022 data, and close proximity to all the amenities of New York, DC, Philadelphia and Baltimore, without the high price tag, Delaware can be an ideal choice for a place to live where you don't have to worry about as much professional competition with other physicians and dentists. An added bonus is that the number of homes for sale in Delaware in 2023 has risen by 29.4%, compared to January 2022, and this trend is expected to continue through the spring.

If you’re a physician or dentist looking to secure a physician mortgage loan in Delaware, you have a unique tool in your toolbox to handle today’s housing market: the physician mortgage loan.

Conventional mortgages typically require a 20% down payment. This type of mortgage generally has a $726,200 max loan size in most parts of the country. For many physicians looking to buy their dream home out of training, a conventional mortgage might require a huge down payment or more income history than they can provide.

How a Delaware physician mortgage allows for home buying benefits

Physician home loans have a similar interest rate to conventional mortgages but with no PMI. Low down payments are also available, with as little as 0%, 5%, or 10% down for most home purchases.

Banks restrict these mortgage programs to individuals with specific graduate degrees, such as MD, DO, DMD, DDS, DPM, DVM and occasionally some others.

A doctor loan also makes it easier to qualify for when you have significant student debt.

If you want to get started, check out the quote form below, or keep reading to see the names of each of the Delaware banks offering doctor mortgages.

8 Top physician mortgages available in Delaware

We put together a list of top physician mortgage companies in Delaware to start your search.

1. BMO Bank, N.A.

With BMO Bank, N.A., you can get an affordable home loan with no PMI requirement and flexible debt-to-income underwriting options.

As a licensed medical doctor with MD, DDS, DMD or DO designation, you could qualify even if you have student loan debt, are starting residency soon, and have an employment contract with a start date within 90 days of closing. 

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

2. Citizens

Citizens allows for down payments as little as 5%. Their max physician home loan amount is $1.5 million. They offer fixed-rate mortgages from ten to 30 years, as well as adjustable-rate mortgages from three to ten years.

3. First National Bank

First National Bank’s Doctor Loan program is available to eligible MDs (Doctor of Medicine), DOs (Doctor of Osteopathic Medicine), dentists, veterinarians and podiatrists who are less than ten years from training. Those with greater than ten years are still eligible, but are required to put down a minimum of a 10% down payment.

H-1B and green card holders are encouraged to apply. To be approved, one must provide his or her signed offer letter or employment contract.

Financing options include:

• 0% down for up to $1.25 million
• 5% down for up to $1.5 million
• 10% down for up to $2 million

First National Bank offers the option of cash-out refinancing for up to 80% of the loan amount. In addition, you can choose from a range of mortgage types, including 30- or 15-year fixed-rate mortgages, and 15-, 10-, 7- and 5-year adjustable-rate mortgages (ARMs).

For more info, contact Josh Feldman.

4. Fulton Mortgage Company

Fulton Mortgage Company’s physician mortgage loan program is very generous. They provide up to $3 million in financing for podiatrists, pharmacists and veterinarians. Medical professionals up to 15 years out since residency or training can qualify for this program.

In addition, Fulton allows parent co-signers and has no reserve requirements. This could be ideal for resident doctors looking to buy a home.

Financing options include:

• 0% down for up to $1.5 million
• 5% down for up to $2 million
• 10% down for up to $3 million

Eligible borrowers can close on their new home up to 90 days before starting a new position with an acceptable employment contract.

For more information, contact Jim Webster.

5. Huntington National Bank

Huntington Bank’s doctor mortgage loan is available to physicians, dentists, veterinarians and podiatrists with a minimum credit score of 700.

Key standouts that make Huntington National Bank a great choice include being able to borrow up to $2 million with no PMI. Plus, loans up to $1 million offer 100% financing.

This is also an excellent option for new residents. Simply provide a copy of your employment contract and a letter from your employer to qualify.

Financing options include:

• 0% down for up to $1 million
• 5% down for up to $1.25 million
• 10% down for up to $2 million

6. TD Bank

TD Bank doctor mortgages are a great option for physicians, dentists, and podiatrists seeking up to 100% financing with no PMI. Residents and fellows can also qualify, with an added bonus of being able to close up to 90 days in advance of your start date.

You need one of the following degree types to qualify: MD, DO, DPM, DDS, or DMD.

Financing options include:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10.01% down for up to $2 million

TD Bank has 30 year fixed- as well as adjustable-rate mortgage (ARM) financing options. They also offer flexible underwriting to those with large student loan balances. Doctors with green cards and those on H-1B visas can also qualify.

To be approved for one of the aforementioned loan amounts, you will need a minimum FICO score of 740.

To learn more, contact Neil Surgenor.

7. Truist

Arkansas physicians, dentists and podiatrists with an MD, DO, DPM, DDS or DMD degree can qualify for the Truist doctor mortgage loan program. 

If you’re a practicing physician within 10 years of completing your training, you can choose from the following loan options:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10.01% down for up to $2 million

To unlock the best financing options, you need a minimum credit score of 720.

8. U.S. Bank

The professional mortgage options at U.S. Bank are available for medical physicians, including residents, fellows, and doctors of osteopathy (DO). Lawyers are also eligible. Dentists and nurses are not eligible at this time.

The loan must be for a primary home and includes no PMI. These loans are for relatively recent graduates of med school, residency, or a fellowship program.

You can borrow up to $2.5 million, but you’ll need a minimum down payment:

• 5% down for up to $1 million
• 10% down for up to $1.5 million
• 15% down for up to $2 million

Is a Delaware physician home loan right for you?

If you purchase a home with a reasonable price compared to your income, then a physician mortgage can make a lot of sense. 

Mortgage interest on a principal amount of $750,000 or less can be tax deductible if you itemize. If you have student loans, that interest is not tax deductible.

Hence, if you’re paying down student debt, a tax-efficient strategy is to borrow more on your mortgage so you can pay down your student loans faster. You can also look into Delaware student loan forgiveness options.

In addition, you can use other cash you had saved for a down payment on accomplishing your other homeownership goals such as renovating or buying furniture.

If you want to explore your options, fill out the form below and start receiving quotes.