7 Best Physician Mortgage Loans in South Dakota

Are you a doctor looking to purchase or refinance a home in South Dakota? 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 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 $726,200 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.

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. BMO Bank, N.A.

Another great option for a doctor mortgage loan in South Dakota is the BMO Bank, N.A. Physician 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

2. 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. 

3. Evolve Bank & Trust

Evolve Bank offers doctor mortgage loans for a variety of professions, including those outside of the medical field. You can apply if you're a:

• Medical residents
• MD
• DDS
• DMD
• OD
• PharmD
• DPM
• DVM
• DO
• RN
• PA
• NP
• Clinical nurse specialists
• ATP pilots
• CPA
• Attorneys
• 1099 worker

You must provide two years of income documentation if you're a 1099 worker. Evolve Bank also serves applicants with an H-1B visa or a green card who can provide 25% down.

Financing choices range from 0% down for up to $1 million or 5% down for up to $1.5 million (with a minimum credit score of 700).

While 100% financing and no PMI are excellent options, Evolve Bank doesn't have a 30-year fixed-rate mortgage loan. Instead, they offer adjustable-rate mortgages (ARMs).

4. 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
• Pharmacists

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

5. 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. 

Contact: Bill Kekatos

6. NEO Home Loans

NEO's Physician Home Loans program caters to doctors in nearly all 50 states who possess an MD, DO, DDS, DMD, DPM or DVM. If you are looking to purchase a primary residence, NEO's program should be part of your search. NEO also offers the option of cash out refinances, at 95% LTV for up to $1 million.

This program only offers the rate option of a 30-year ARM. However, if that doesn't bother you, keep reading for their available financing options:

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

Applicants can still qualify with deferred or IBR student loans. A bonus, using gifted or borrowed funds for a down payment is accepted by this program. Those who are approved by this program must close 90 days before his or employment start date.

7. U.S. Bank 

The physician mortgage loan program from U.S. Bank is available to lawyers, 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. 

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 over 2,100 physicians actively practicing in 2023 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 up 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 $275,866, according to the April 2023 Zillow report. However, home values have gone up 8.4% 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.