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, DVM, 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 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, DVM, DC and PharmD.
- No PMI 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 areas). Conventional mortgages can 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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7 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. 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.
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.
For more information, reach out to Bill Kekatos via email or call 847-443-5978.
3. 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.
4. U.S. Bank
The physician mortgage loan program from U.S. Bank is available to physicians, residents and fellows looking for great financing options.
- 5% down for up to $1 million
- 10% down for up to $1.5 million
- 15% down for up to $2 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.
Email Jonathan Brozek or call 916-602-4080 for more information about U.S. Bank’s doctor mortgage program in South Dakota.
5. BMO Harris
Another great option for a doctor mortgage loan in South Dakota is the BMO Harris Physicians Mortgage Program. As a licensed medical doctor with MD, DDS, DMD or DO designation, you could qualify even if you have student loan debt, are starting residency soon, and have an employment contract with a start date within 90 days of closing.
If you have more than ten years of post-residency experience, you could get up to 90% financing.
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
Some of the features include no PMI requirement and flexible debt-to-income underwriting options.
Contact: Patrick O’Malley. Email Patrick or call him at 623-283-1433.
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 a minimum credit score of 700 is required for doctor loans.
7. First National Bank of Omaha (FNBO)
The FNBO physician mortgage loan program is available to practicing physicians, dentists and other select healthcare professionals in South Dakota. 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.
Student loans may be excluded from your debt-to income 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.
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. — borrowers often have less 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 in 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.
It’s 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% down payment and generous underwriting options for those with student loan debt could go towards home renovations or simply more money in your pocket.
