What you need to know:
- Physicians in Hawaii could get 0% down payment or low down payment options plus no private mortgage insurance (PMI) with a doctor mortgage.
- Receive up to 100% financing for loans of $1 million or more as a doctor, dentist, nurse or other qualifying health professional.
- Take advantage of generous terms and underwriting options even with high amounts of student loan debt.
With a population of just over 1.4 million residents, Hawaii is considered the Aloha State for good reason. The state is known for its beautiful beaches, clean white shores and its vacation lifestyle all year long. If you’re a doctor or dentist hoping to buy a home in Hawaii, you’ll find a special home loan program just for you.
The physician mortgage loan in Hawaii allows medical professionals to take advantage of exclusive perks and benefits unique to their financial situation. Yes, even if you have high amounts of student loan debt from graduate school, you could still get attractive perks like 0% down and no PMI on your home loan.
Read on to learn more about what a physician loan in Hawaii includes and what it could mean for your dreams of homeownership.
What is a Hawaii physician mortgage loan?
In Hawaii, a physician home mortgage is a loan program specifically designed for medical professionals such as dentists, nurses, veterinarians and doctors. For this reason, it’s often called a doctor mortgage.
But as mentioned, these types of loans aren’t just for doctors. Anyone who has MD, DO, DDS, DP, DPM, OD, DMV, DC or PharmD designation can quality, too. Typically professionals in the medical field have high income and high debt, due to large amounts of student loans. Luckily, this is not a deterrent to qualifying for a physician mortgage.
Here are three of the primary benefits of a physician mortgage in Hawaii.
Zero down payment
Usually with a conventional mortgage borrowers need to bring at least 20% of the home’s cost to the table during closing. Eliminating this could mean savings of thousands or even hundreds of thousands of dollars when purchasing a home.
But this is not the case with a physician mortgage! As a health professional, you could qualify for 0% down with a doctor mortgage, depending on the total cost of the home.
No private mortgage insurance (PMI)
A huge per-month savings with a doctor mortgage is the fact that private mortgage insurance (or PMI for short) is not required. According to FreddieMac, the average cost of PMI is between $30 to 70 per month for every $100,000 borrowed.
Using this average, if a home costs $1.5 million you would pay between $450 and 1,050 extra per month in PMI with a conventional mortgage. However, a physician mortgage in Hawaii does not charge PMI, therefore saving you hundreds or even thousands of dollars each month.
Student loan debt friendly
Physician mortgage loan programs expect their borrowers to have excessive student loan debt from medical school. But thanks to generous underwriting guidelines, the terms are usually flexible when calculating the debt-to-income ratio (DTI).
In some cases, lenders use the actual monthly payment from a federal repayment plan, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE).
There are also allowances for new physicians and those in residency. Many lenders allow attendings, residents, fellows and even interns to use an employment contract. Just be sure the start date is between 60 and 90 days prior to closing.
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4 top physician mortgage lenders in Hawaii
Here are four of the top lenders offering physician loans in Hawaii, each with its own specific set of terms and perks. Review the details of each mortgage loan amount offered and reach out to the loan officers listed for more information.
We recommend getting two to three quotes to compare lenders and find the best deal possible.
1. BMO Harris
The BMO Harris Physicians’ Mortgage Program is open to residents, fellows and existing or newly licensed medical doctors. Qualified professionals are those with MD, DDS, DMD and DO designations.
New physicians can receive up to 95% financing on a mortgage of $1.5 million. Keep your employment contract handy to prove you begin employment within 90 days of closing.
Physicians that have been practicing for more than 10 years can receive up to 90% financing. Additionally, you could receive up to $200 off closing costs if you’re a current BMO Harris customer.
2. KeyBank Mortgage
KeyBank’s Medical Professional Loans Program offers one of the highest loan limits in the physician mortgage space, with loans up to $3.5 million. And, unlike other banks that limit their program to new physicians, you can apply for a physician mortgage with KeyBank no matter how long you’ve been in practice.
Learn more about KeyBank’s physician mortgage loans available in Hawaii by contacting J. Mansisidor via email or calling 757-926-0106.
3. Northpointe Bank
Northpointe Bank’s Doctor Loan program is designed for borrowers with high student loan debt or limited savings. If you qualify, there is 0% down required on home loans up to $1.1 million or as little as 15% down on loans up to $2 million. Plus, there is no mortgage insurance required and special financing is available for new doctors with proof of employment.
4. U.S. Bank
Compared to some of the other lenders on this list, U.S. Bank has slightly higher down payment requirements. But their customer service with medical personnel is highly rated.
Physicians with a credit score of 710 or higher can receive 95% financing for up to $548,250 (or up to $822,375 in select counties). Or, if your loan will be upwards of $2.5 million, get 75% financing if you qualify.
Learn more about U.S. Bank’s physician mortgage loans available in Hawaii by contacting Jonathan Brozek via email or calling at 916-602-4080.
If you want even more choices for doctor mortgage loans in Hawaii, check out our full list of lenders in all 50 states.
Is a doctor mortgage in Hawaii right for you?
The average home value in Hawaii is nearly $870,00 with estimates climbing more than 22% over the past year. But that doesn’t stop the 3,700 practicing physicians from calling Hawaii home. If owning a home in the gorgeous state of Hawaii is your dream, you can make it happen — thanks to a physician loan mortgage.
If you’re concerned about the risk of getting such a high mortgage loan along with your student debt, keep in mind that these programs are designed for this! Think of your career in the health field as a pro, not a con. Plus, depending on your income, the mortgage interest paid on your home could be used as a tax deduction.
Lastly, remember that making mortgage payments on a doctor loan is a long-term investment for you and your family. That’s why we recommend getting started by filling out the form below to get in touch with the top mortgage lenders in Hawaii.