- New Jersey physician mortgage loans are designed to benefit physicians, dentists and other high-earning medical professionals by offering financing options with little or no money down.
- Unlike with a conventional loan, there is no private mortgage insurance (PMI) requirement when using a physician mortgage loan program.
- Physician loans are typically reserved for a primary residence, but some lenders might approve financing for a second home.
According to data from New Jersey Realtors, the median home price in New Jersey in January 2023 was $415,000. Whether you're interested in the high quality New Jersey schools or just trying to get more elbow room, demand for housing in the Garden State is strong. With a volatile market the past few years, you'll want to make the strongest offer you can while also getting the best financing terms possible.
If you’re a physician or a dentist, you might qualify for a New Jersey physician mortgage loan. This type of loan has exclusive perks, such as mortgage options with no down payment, no PMI and favorable consideration of student loan debt.
Here’s what you need to know about physician mortgage loans in New Jersey.
New Jersey physician mortgage loans: How do they work?
Sometimes called a “doctor mortgage”, a physician mortgage loan is a low down payment mortgage option for physicians and certain other medical and dental professionals. One of the biggest perks is that physician mortgage loans don’t require PMI even with 0% down.
In contrast, a conventional mortgage loan will typically need a down payment equivalent to 20% of the home’s purchase price. Anything less will likely require you to carry PMI which can cost hundreds extra every month.
Other potential benefits of a New Jersey physician mortgage loan include:
- Interest rates that compete with jumbo mortgage loan options if you plan to finance over $548,250,
- Favorable treatment of student loan debt when assessing your debt-to-income (DTI) ratio
- The ability to use an employment contract or job offer letter as proof of future income, in order to qualify
However, because a New Jersey physician mortgage loan is a type of jumbo loan (in some cases up to several million dollars), you should exercise caution when moving forward with this mortgage option.
What mortgage product do you need?
Your Occupation As Of September 2023
Are You Currently Working With a Realtor?
Home Price Range
Preferred Down Payment
Stage You're At in the Home Buying Process
When Do You Want a Mortgage Approval?
How Many Banks Would You Like Quotes From?
Any Bankruptcies or Short Sales?
State Where You Plan to Purchase
Metro Area Where You Plan to Purchase
Would You Like to Add Any Additional Details?
You’ll likely qualify for more than you think with a physician mortgage loan. So, it’s important to limit your home purchase to how much you can realistically afford regardless of how much you qualify for.
10 Lenders worth exploring for New Jersey physician mortgage loans
Although they’re generally referred to as a physician mortgage loan, some lenders will extend the program to dentists and other high-earning professionals. Depending on the lender, there also might be options for those still in residency or fellowship.
Each of the following New Jersey physician mortgage lenders has its own requirements, loan terms and financing options. Be sure to explore all options to find the right fit.
1. Citizens Bank
The Citizens Bank Doctor Loan program is available to licensed Doctors of Medicine (MD), Doctors of Osteopathic Medicine (DO), Doctors of Dental Surgery (DDS), and Doctors of Dental Medicine (DMD) who have completed residency within the last ten years. It also offers mortgage options for current medical residents, fellows, and interns.
The basics of this loan program include:
- Up to 95% financing for loan amounts up to $850,000, up to 89% for loans up to $1 million, and up to 85% for up to $1.5 million
- Ability to exclude student loan debt if it’s deferred for at least 12 months following closing or use federal income-driven payment in DTI assessment
- Fixed-rate or adjustable-rate mortgage (ARM) options
Note the Citizens Bank Doctor Loan is only available for purchases and limited cash-out refinances for primary residences.
2. Evolve Bank & Trust
Getting into a home with no down payment and no private mortgage insurance (PMI) is possible when you get an adjustable-rate mortgage (ARM) from Evolve Bank. Homeowners can refinance with the same advantages!
Evolve Bank is unique among doctor loan options because it is open to applicants outside the medical field. Doctors, dentists, podiatrists, optometrists, pharmacists, veterinarians, PAs, NPs, RNs, and clinical nurse specialists are eligible. Additionally, you can apply if you're an ATP pilot, CPA or attorney.
Those with 1099 income documentation are eligible. H-1B visas or green cards are also eligible, but must put 25% down.
Before applying for the financing options of 0% or 5% down, make sure you have a 700 or better credit score, in order to be approved.
The 0% and 5% down payment options include:
- 0% down for up to $1 million with 720 minimum credit score
- 5% down for up to $1.5 million with 700 minimum credit score
The physician loan program from Evolve Bank is a great option for financing (or refinancing).
3. First Horizon Bank
First Horizon Bank has a flexible physician mortgage option for MD, DO, OMS and DPM professionals. It comes with no upfront PMI, higher loan amounts and very low credit score requirements — borrowers with a score of 670 can qualify. You can also close up to 90 days before starting a new job, so long as you have an employment contract in hand.
Financing choices include:
- 0% down for up to $1.5 million
- 5% down for up to $2 million
- 10% down for up to $2.5 million
They also offer H-1B visa non-citizens loans and 100% financing.
4. Fulton Mortgage Company
Pharmacists, veterinarians and podiatrists are eligible for the Fulton Bank doctor loan program. Medical professionals up to 15 years out since residency can qualify for this program.
Resident doctors in particular may want to take a look at this program, due to Fulton allowing parent co-signers and having no reserve requirements.
Key details include:
- 100% financing for up to $1.5 million, 95% for up to $2 million, and 90% for up to $3 million
- Up to 6% seller-paid closing cost and prepaids allowed
- Deferred student loan payments (12 months or more) not included in the credit approval process
This physician mortgage loan program allows borrowers to close on the home up to 90 days prior to starting employment.
Contact: Jim Webster
5. Huntington National Bank
The physician mortgage loan with Huntington Bank is available to doctors, dentists and veterinarians with an MD, DO, DDS, DDS, DMD, or DVM designation. Podiatrists and ophthalmologists are also eligible.
Financing options for borrowers with a minimum credit score of 700 include:
- 0% down for up to $1 million
- 5% down for up to $1.25 million
- 10% down for up to $2 million
For borrowers with a credit score ranging from 680 to 699, financing options include:
- 5% down for up to $500,000
- 10% down for up to $1 million
- 25% down for up to $2 million
This program is limited to the purchase or refinance of a primary residence.
Contact: Bill Kekatos
KeyBank's Medical Professional Loan allows medical doctors and dentists to seek up to $3.5 million of financing.
This physician mortgage loan program includes:
- Up to 100% financing, depending on the loan amount
- Eligible property types include one-unit, single-family homes, attached or detached, condos or planned unit developments
- Fixed and variable-rate mortgage loans are available
Note this loan program is for primary residences and second homes occupied by the owner.
7. NEO Home Loans
The physician home loans program at NEO offer the options of zero down for up to $1 million, 5% down for up to $1.25 million, and 10% down for up to $2 million.
Qualified careers include: MD, DO, DDS, DMD, DPM or DVM.
The only rate option under this program is a 30-year ARM.
Veterans are welcome to apply, as well as weigh the benefits of using NEO's physician home loan program versus NEO's VA loans.
J1 visa holders are also encouraged to apply.
If you would like to use gifted or borrowed funds for a down payment, this program will allow that.
8. S&T Bank
The doctor mortgage from S&T Bank is more of a professional mortgage because it includes medical professionals and high-income earners outside the field of medicine.
To be eligible, you must be a medical resident, medical fellow, attorney, or hold a MD, DDS, DMD, DO, DVM, or PhD in a non-medical science. Newly self-employed 1099 independent contractor physicians and H-1B visa and/or green card holders can also qualify.
Financing options include:
- Up to 95% financing
- 5% down with no max loan amount
- 10, 15, 20 and 30 year repayment terms
In addition to the professional mortgage program, S&T Bank offers VA home loans. Cash-out refinancing with 80% LTV (loan-to-value) and no cash out limit is also available.
Contact: Mike Wagner
9. TD Bank
New Jersey residents, fellows, doctors, dentists, podiatrists, and oral surgeons are eligible for the TD Bank medical professional mortgage program.
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
Applicants should note that they need to have a FICO score of 740 or higher to be approved.
Contact: Neil Surgenor
New Jersey doctors and dentists (MD, DO, DDS, DMD or DPM) are eligible for the Truist doctor mortgage loan program.
Program details for practicing physicians are as follows:
- Up to 100% financing for up to $1 million, up to 95% for up to $1.5 million, and 89.99% for up to $2 million
- Physicians who are 10 to 15 years post-residency or fellowship can access 89.99% financing
Licensed residents, interns and fellows in an MD, DO or DPM program may be eligible for up to 100% financing for a maximum loan amount of $750,000.
Contact: Matt Albert
Should you take out a New Jersey physician mortgage?
Whether you’re just starting out or have an established career, a large down payment can be burdensome for physicians. Considering there are many New Jersey physician mortgage loans with competitive rates and terms, this type of loan can save you money in multiple ways.
Saving up for a conventional mortgage can delay both personal and financial goals. A New Jersey physician mortgage loan with no (or a low) down payment can get you into a home sooner. But it can also save you hundreds of dollars each month on PMI that is otherwise required with a conventional mortgage if your down payment is less than 20% of the home’s purchase price.
However, if you think you’ll be tempted by the high loan limits, this type of loan might not be best for you. Remember, just because you qualify for a large amount doesn’t mean you should sign for it.
Be sure to shop around for a variety of home financing options to find the best fit for your location, profession and financial situation. Check out our referral page for physician and dentist mortgage loan options by state.