8 Best Physician Mortgage Loans in Minnesota: Relaxed Underwriting for Physicians

What you need to know:

• A physician mortgage loan in Minnesota can open the door to $0 down financing options for doctors, dentists and other qualifying professions.
• Physician mortgage loans don’t require private mortgage insurance.
• Medical residents, interns, fellows and new physicians benefit from flexible underwriting guidelines that account for your large student debt and limited income history.

If you’re a medical doctor, dentist, podiatrist or veterinarian looking to purchase or refinance a home in Minnesota, there’s an exclusive homeownership program made specifically for you. It’s called a physician mortgage loan.

Don’t let the name throw you off, though. Although this type of program was originally designed for medical doctors, eligibility requirements among physician mortgage lenders in Minnesota now include other professions with high student debt and stable earning potential.

Read on to learn about the many benefits of using a physician mortgage loan in Minnesota.

How do Minnesota physician mortgages work?

Physician mortgage programs offer up to 100% financing with no private mortgage insurance (PMI) requirement. But you’ll need to have a qualifying degree to benefit from this exclusive program.

Most physician home loans require an MD, DO, DDS or DMD designation. But some programs now include other professions, such as podiatrists, ophthalmologists, veterinarians and more.

If you’re able to take advantage of a physician mortgage, you’ll benefit from:

• Down payment options range from 0% to 15%, depending on your loan amount and other qualifying factors (e.g. minimum credit score).
• No PMI requirement regardless of down payment, potentially saving you hundreds of dollars each month.
• Alternative student loan debt calculations that’ll weigh more favorably for your debt-to-income ratio.
• Relaxed income documentation requirements allow you to qualify with proof of an employment contract for residents and physicians starting a new job.

Additionally, a physician mortgage loan can give you access to loan amounts much higher than conventional loan limits while still maintaining competitive interest rates. For reference, the conventional limit is $726,200 for most of the country for 2023.

So, if you’re looking for a home in a desirable market, a physician mortgage can open the door to financing well beyond what you’ll likely qualify for with a traditional mortgage.

8 Top physician mortgage lenders in Minnesota

Physician mortgage loans generally apply to purchasing or refinancing an existing primary residence. However, some exceptions allow for new construction, second homes or vacation properties. Investment properties aren’t eligible.

If you’re looking to purchase a home, we’ve put together a list of the best physician mortgage lenders in Minnesota. We’ve included direct contact information for loan officers specializing in this type of mortgage program.

1. Alerus Bank

The doctor loan program with Alerus Bank is available to Minnesota medical doctors and dentists during residency or their first two years of practice.

Financing options include 100% financing for up to $750,000 and 95% financing for up to $1 million.

2. BMO Bank, N.A.

Medical doctors, dentists, residents and fellows have access to the BMO Bank, N.A. physician mortgage program with a low down payment.

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

However, if you have more than 10 years of post-residency experience, up to 90% financing is available.

For more information, contact Patrick O’Malley.

3. Evolve Bank & Trust

Evolve Bank offers doctor mortgage loans for home purchases and refinancing.

No PMI is required and borrowers can potentially put zero dollars down.

Down payment choices include:

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

Eligible applicants include those who are 10 years or less from starting his or her career and are a medical resident, MD, DDS, DMD, OD, Doctor of Pharmacy, DPM, DO, RN, physician assistant, nurse practitioner, clinical nurse specialist, ATP pilot, CPA, attorney, or veterinarian.

For you to be approved for 0% or 5% down, you must have at least a credit score of 700.

4. Flagstar Bank

Flagstar Bank has a wide reach for their physician mortgage loan program, since they offer it in all 50 states.

Qualified borrowers include medical residents, doctors, dentists, optometrists, ophthalmologists, podiatrists, pharmacists, accountants, attorneys, physician assistants, registered nurses, nurse practitioners, clinical nurse specialists, ATP pilots and veterinarians.

If you are looking to purchase or refinance a primary residence, Flagstar's program could be a great fit for you. However, take note, condominiums, townhomes and vacation homes aren’t eligible under this program.

5. Huntington National Bank

A physician mortgage with Huntington Bank can provide up to $2 million in financing to eligible doctors, dentists, veterinarians, podiatrists and ophthalmologists.

If you have a credit score of 700 or more, 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

However, low down payment options are also available for borrowers with credit scores ranging from 680 to 699.

For more information, contact Bill Kekatos.

6. Laurel Road

Laurel Road’s physician mortgage is available to many professions, including practicing doctors, podiatrists, dentists, residents, fellows and interns. Clinical professors, researchers and managing physicians might also be eligible.

Qualified borrowers can access up to $1 million with as little as 0% down for purchasing a primary residence. Second homes are allowed, but you’ll need a larger down payment.

7. NEO Home Loans

NEO's Physician Home Loans program is available to those who qualify who are in one of the following careers: MD, DO, DDS, DMD, DPM, DVM.

This program only offers one rate option, a 30-year ARM. With this rate, you can score one of the following financing options:

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

If you are a veteran or J1 visa holder who is in one of the aforementioned careers, you are encouraged to apply to NEO's program.

Cash out refinancing is also available, at 95% LTV for up to $1 million.

8. U.S. Bank

The U.S. Bank doctor mortgage loan is available to lawyers, physicians (MD and DO), residents and fellows with a low down payment.

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

Note that dentists and other medical professionals aren’t eligible at this time.

Is a Minnesota physician mortgage right for you?

According to the Minnesota REALTORS February 2023 market update, the average sales price across the state was $363,294. The most expensive markets include homes in the central region and the Twin Cities metropolitan area.

So, let’s say your ideal home is located in Minneapolis for $500,000 to $750,000. With a conventional mortgage, you’ll need to put down 20%. If you don’t have any savings yet, it could be years before you’re able to save up $100,000 to $150,000. Even if that amount is achievable in the near future, there might be other ways you could strategically use that capital.

For example, you could immediately increase your home’s value by remodeling the kitchen and bathrooms or addressing other necessary renovations. Alternatively, you might benefit more overall by using your down payment savings to pay off your student debt or other obligations.

There’s a lot to consider in the home buying process, so we recommend reaching out to a few mortgage lenders in Minnesota to compare your options.

Start the free quote process for a physician mortgage loan in Minnesota by using the form below.