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 $647,200 for most of the country for 2022.
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.
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7 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. 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, email Bill Kekatos or call him at 847-443-5978.
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. They serve H-1B visas and/or green card holders.
Financing choices include:
- 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.
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.
3. U.S. Bank
The U.S. Bank doctor mortgage loan is available to 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.
For more information, email Jonathan Brozek or call him directly at 916-602-4080.
4. 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.
5. BMO Harris Bank
Medical doctors, dentists, residents and fellows have access to the BMO Harris 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.
Contact: Patrick O’Malley. Email Patrick or call him at 623-283-1433.
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. FNBO (First National Bank of Omaha)
The FNBO physician mortgage loan program is available to practicing physicians, dentists and other select healthcare professionals in Minnesota. It offers low down payment options (100% financing is available for qualifying professions) with no PMI.
In addition to their physician mortgage program, they have one of the broadest professional mortgage programs that includes those with a CPA, CFA, JD, PA, NP, CRNA, or DVM who are eligible.
Student loans may be excluded from your DTI ratio if your loans are deferred for 12 months.
Who’s eligible (loan amounts up to $1.25 million):
- Practicing medical doctors and residents
- Anesthesiologists
- Dentists
Financing options include:
- 0% down for up to $850,000
- 5% down for $850,000 to $1.25 million
- 10% down for $1.25 million to $1.5 million
Who’s eligible (loan amounts up to $1 million):
- Physician Assistants
- Nurse Practitioners
- Certified Registered Nurse Anesthetists
- Veterinarians
Financing options include:
- 5% down for up to $750,000
- 10% down for up to $1 million
Contact: Abe Huerta. Email Abe or call him at 469-575-4730.
8. 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.
Is a Minnesota physician mortgage right for you?
According to the Minnesota REALTORS February 2022 market update, the average sales price across the state was $353,409. 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.
