What you need to know:
- Getting a physician home loan in South Dakota gives borrowers access to benefits like no private mortgage insurance (PMI).
- Depending on the loan, the program is open to a wide variety of medical professionals including MD, DO, DDS, OD, DP, DPM, DMV, DC, and PharmD.
- Pay 0% down for loans as high as $1 million or more as a physician, dentist, veterinarian, resident, or other qualified medical professional.
Are you a doctor looking to purchase or refinance a home in South Dakota? Then we have great news! There’s an exclusive homeownership program to help you achieve your dreams. It’s called the physician mortgage loan.
A physician mortgage loan is also known as a doctor loan, but the eligibility requirements aren’t just for doctors. These home loan programs in South Dakota allow for dentists, veterinarians, nurse practitioners, pharmacists, and even those still in residency to qualify.
Keep reading to find out how a physician mortgage in South Dakota works and the requirements you should know before applying.
How do South Dakota physician mortgage loans work?
Buying a home in South Dakota as a medical professional means flexible down payment options and no private mortgage insurance (PMI) requirements. However, you’ll need to have a qualifying degree in order to take advantage of these benefits.
Here are some of the benefits of getting a physician mortgage loan in South Dakota:
- Zero down or low down payment options for up to 100% financing.
- Open to medical professionals including MD, DO, DDS, OD, DP, DPM, DMV, DC, and PharmD.
- No private mortgage insurance needed, regardless of down payment.
- Favorable treatment of student loan debt when calculating debt-to-income ratio (DTI) during underwriting.
We recommend seeking out a physician loan mortgage in South Dakota if the cost of your mortgage is expected to be well above the conventional loan limit (which is around $647,200 in most states). Conventional mortgages also require a 20% down payment, which is not the case with a doctor mortgage.
With attractive features like lower interest rates than most JUMBO mortgages and options to qualify even if you’re a resident starting a new job, a physician mortgage loan could be the right choice.
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6 Best Physician Mortgage Lenders in South Dakota
Here is a list of the best South Dakota physician mortgage lenders and some of the benefits of each program. These are the best options we’ve found through our research.
1. Northpointe Bank
Northpointe Bank’s physician mortgage program is open to a wide variety of medical professionals in all 50 states, including South Dakota. If you have an MD, DO, DDS, OD, DP, DPM, DMV, DC or PharmD designations, check out this program.
Northpointe Bank is a solid lender that has been around for nearly two decades and offers these financing options.
- 0% down for up to $1 million.
- 5% down for up to $1.6 million.
- 10% down for up to $1.85 million.
- 15% down for up to $2 million.
2. Huntington Bank
If you are a physician, dentist or veterinarian with an MD, DO, DDS, DMD, or DVM designation check out Huntington National Bank. Their program is also open to recent grads as long as it accompanies a letter and signed contract from your new employer. Here are the financing details.
- 0% down for up to $1 million.
- 5% down for up to $1.25 million.
- 10% down for up to $2 million.
If you have a credit score of 700 or higher, you could qualify for the above loan options. However, if you’re a borrower with a credit score ranging from 680 to 699, there are other low down payment options available for you.
KeyBank is a well-known name in the lending industry. They have generous options for physicians, podiatrists, and dentists who want to purchase a new home in South Dakota. Here are the financing options they offer.
- 0% down up to $750,000
- 5% down up to $1 million
- 10% down up to $1.5 million
Plus, one option that makes it easier to qualify is that student loan borrowers only need 2 months of reserves to not have their loans affect underwriting decisions. KeyBank’s physician mortgage deal also offers a maximum home loan of up to $3.5 million, the highest of any lender in South Dakota offering this program.
4. U.S. Bank
The physician mortgage loan program from U.S. Bank is available to physicians, residents, and fellows who are looking for great financing options.
- 5% down for up to $548,250 (or up to $822,375 in select counties).
- 10% down for up to $1.25 million.
- 15% down for up to $1.5 million.
- 20% down for up to $2 million.
- 25% down for up to $2.5 million.
The home loan must be for a primary home and borrowers must have a minimum of a 710 credit score or higher. However, there are no PMI requirements.
4. BMO Harris
Another great option for a doctor mortgage loan in South Dakota is the BMO Harris Physicians Mortgage Program. It’s available to medical doctors, dentists, residents, and fellows. If you have more than 10 years of post-residency experience, you could get up to 90% financing.
- 5% down for up to $1.5 million.
- 10% down for up to $2 million.
Some of the features include no PMI requirement and flexible debt-to-income underwriting options.
6. Citizens Bank
The Citizens Bank Doctor Loan Program is designated for professionals with MD, DO, DDS, and DMD designations. It allows for down payments as little as 5% for up to $600,000, with maximum loans up to $1.5 million.
Borrowers can choose between a fixed-rate or adjustable-rate mortgage, with no PMI requirements. Please note that for doctor loans a minimum credit score of 700 is required.
If you want to see even more options for doctor mortgage loans in South Dakota, here is our full list of lenders for all 50 states.
Is a doctor mortgage in South Dakota right for you?
If you’re looking to join the approximately 2,100 physicians actively practicing in South Dakota, now is the perfect time to buy the home of your dreams. In today’s ever-changing housing market, you need to jump on a good deal fast. And there isn’t a lot of time to save a down payment or pay off student loans before buying a home.
The average home price in South Dakota is more budget-friendly than other parts of the country, coming in at $282,226, according to Zillow. However, home values have gone up 16.6% in the past year so waiting too long could mean paying a lot more.
This is why applying for a doctor mortgage program from one of the lenders listed above, could be the right choice. The savings you could get thanks to a 0% downpayment and generous underwriting options for those with student loan debt, could go towards home renovations or simply more money in your pocket.