9 Best Physician Mortgage Loans in Tennessee: Not Just for Doctors Anymore

If you’re a doctor, dentist or another medical professional in Tennessee, you could benefit greatly in this competitive housing market by choosing a physician mortgage loan to purchase or refinance your home.

Like most of the country, rising home prices and limited inventory are boxing out many prospective homebuyers. According to the Tennessee REALTORS, the median home sales price for February 2023 was $265,016. Meanwhile, home sales across the state dropped by almost 30%, a likely byproduct of the fed hiking up interest rates throughout the year.

Therefore, you’ll likely need to pay a higher asking price or commit to a less expensive home that might need renovations, in order to make it your dream home and still be able to afford the monthly mortgage bill (due to higher interest rates making monthly payments much harder to keep up with).

Fortunately, you have a secret weapon at your disposal that can benefit you in more ways than one. A physician mortgage loan can give you access to up to 100% financing, freeing up your down payment savings for immediate remodels or other financial priorities.

Let’s explore the main benefits of a physician mortgage in Tennessee and look at which lenders are offering this exclusive program to more than just doctors and dentists.

How does a Tennessee physician mortgage loan work?

A physician mortgage loan, sometimes called a doctor loan program, is a no (or low) down payment financing solution for doctors and dentists. But many of these programs are now available to other professions with a similar career trajectory. Specifically, occupations that require high student debt in the beginning with a well-rewarded salary over time.

The primary benefits of a Tennessee physician mortgage include:

1. Up to 100% financing for eligible borrowers. Financing varies by lender and depends on your loan amount and other qualifying factors (e.g. minimum credit score and debt-to-income ratio).
2. No private mortgage insurance (PMI). Even though your down payment can be as low as $0, you won’t need to carry PMI with a physician mortgage loan.
3. Student loans are treated favorably. With this type of program, you’re expected to have a huge student loan balance. So, depending on the lender, the bank will use your actual monthly payment under an income-driven repayment (IDR) plan or a percentage (e.g. 1% or 2% of your loan amount) when determining your debt-to-income (DTI) calculation.
4. Limited income history won’t be a problem. Most physician mortgage programs will accept an employment contract with a start date within three months of closing as proof of income. Additionally, self-employed physicians might benefit from being able to qualify with fewer years of tax returns than required with a conventional mortgage.

Note that physician mortgages will typically have a higher interest rate than conventional loans because you aren’t putting down 20% of the home.

But if you’re looking to borrow more than the conventional loan limit for your area (generally $726,200 but varies in expensive counties), then a physician mortgage can offer a competitive alternative to a jumbo loan that comes with rate increases.

9 Lenders to explore for a physician mortgage loan in Tennessee

If you’re planning to purchase a new home or refinance your existing property in the state of Tennessee, check out these top Tennessee physician mortgage loans.

Keep in mind that each lender has different eligibility requirements, including which professions and properties qualify. For example, most lenders restrict their programs to an existing primary residence. But some will allow new construction or second homes.

1. BMO Bank, N.A.

With BMO Bank, N.A., you can get an affordable home loan with no PMI requirement and flexible debt-to-income underwriting options.

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. 

Financing options for Tennessee residents include:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10% down for up to $2 million

2. Fifth Third Bank

Fifth Third Bank offers doctors, dentists, podiatrists, optometrists and veterinarians the ability to access up to 100% financing. You must have an MD, DO, DPM, DDS, DMD, DVM or OD to be eligible.

If you’ve been out of residency for at least a year, your financing options are as follows:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10% down for up to $2 million

Interns, residents and fellows who are in medical residency (or scheduled to begin within 90 days of closing) can also take advantage of their zero down option. However, you’ll be limited to $1 million with that zero down payment option. This also applies to new physicians who’ve been out of residency for less than 12 months.

Contact: Sandy Salas

3. First Horizon Bank

First Horizon Bank’s physician home loan is available to borrowers who are an MD, DO, OMS or DPM with a minimum credit score of 670.

Financing options include:

• 0% down for up to $1.5 million
• 5% down for up to $2 million
• 10% down for up to $2.5 million

Unlike other physician mortgage programs, you don’t have to be within 10 years of your medical residency or fellowship to qualify — making it a great option for more seasoned physicians.

They also offer H-1B visa non-citizens loans for up to 100% financing.

4. First National Bank

Tennessee doctors and dentists (including residents, interns and fellows) with an MD, DO, DDS, DMD, DPM, or DVM might qualify for up to 100% financing with First National Bank.

Those with greater than 10 years are still eligible, but are required to put down a minimum of a 10% down payment. H-1B and green card holders are encouraged to apply. To be approved, one must provide his or her signed offer letter or employment contract.

Financing options for practicing physicians include:

• 0% down for up to $1.25 million
• 5% down for up to $1.5 million
• 10% down for up to $2 million

You can access cash out refinancing for up to 80% of the loan amount with this program. Additionally, First National Bank provides a variety of mortgage options, such as 30 or 15-year fixed-rate mortgages, and 15, 10, 7, and 5-year adjustable-rate mortgages (ARMs).

Contact: Josh Feldman

5. Huntington National Bank

The physician mortgage loan with Huntington Bank is available to doctors, dentists, podiatrists, ophthalmologists and veterinarians with an MD, DO, DDS, DMD or DVM degree.

If you have a credit score of 700 or higher, 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

Financing options for borrowers with a minimum credit score of 680 to 700 include:

• 5% down for up to $500,000
• 10% down for up to $1 million
• 25% down for up to $2 million

6. KeyBank

Qualifying Tennessee medical doctors and dentists can access up to $3.5 million for purchasing or refinancing their homes with KeyBank’s medical professional loan.

KeyBank is one of the limited number of physician mortgage lenders that allow financing for a second home.

Up to 100% financing is available for one-unit single-family, attached or detached, condos or planned unit developments.

7. Regions Bank

Regions Bank's Medical Professional Loans program offers Tennessee medical professionals and attorneys no required PMI. There are also no restrictions on how long an eligible medical professional has to have been practicing to be approved for a loan and there is no loan amount restriction.

Additionally, Regions Bank will exclude some deferred student loan payments from your DTI ratio, making it easier for you to qualify for a mortgage.

Eligible applicants include pharmacists, attorneys, nurse anesthetists, nurse practitioners, physician assistants, veterinarians, chiropractors, optometrists, podiatrists, MDs, DOs, DMDs and DDSs. Residents and fellows are also eligible. However, it is important to note that non-permanent visa holders are not eligible.

Financing options for loans include:

• 0% down for MD, DDS and DO
• 3% down for pharmacists, nurse anesthetists, nurse practitioners, physician’s assistants, veterinarians, chiropractors, optometrists, podiatrists and licensed attorneys

30- and 15-year fixed-rate and 10-, 7- and 5-year ARM options are available. You can close up to 60 days before the listed start date on your employment contract or date of transferred employment.

8. Truist

If you’re a doctor or dentist in Tennessee, you can take advantage of a Truist doctor mortgage loan. This program provides up to $1.5 million for practicing physicians (MD, DO, DPM, DDS or DMD) and up to $750,000 for licensed residents, interns and fellows in an MD, DO or DPM program.

Financing options for physicians with less than 10 years of experience include:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10.01% down for up to $2 million

If you have 10 to 15 years of post-residency experience, you’ll be limited to 89.99% financing for up to $1.5 million. You’ll need a relationship with its Medical Wealth Division if you have more than 15 years of experience.

Contact: Matt Albert

9. U.S. Bank

The professional mortgage options at U.S. Bank are available in all 50 states for medical physicians, including residents, fellows and doctors of osteopathy (DO). Dentists and nurses are not eligible at this time. However, lawyers are welcome to apply.

You can borrow up to $2.5 million, but you’ll need a minimum down payment:

• 5% down for up to $1 million
• 10% down for up to $1.5 million
• 15% down for up to $2 million

In addition to providing fast and friendly consultations, Regions Bank does not require a credit check for a rate quote.

Is a Tennessee physician mortgage right for you?

Physician mortgage loans are a great home financing solution for those who are eligible.

With relaxed income documentation requirements and flexible underwriting guidelines that account for large student loan debt balances, a Tennessee physician mortgage loan could make the home buying process easier to qualify for.

Most physician home loan lenders will require a minimum credit score in the 700 range to access the best financing options. But other low down payment options might be available for borrowers with scores in the high-600s.

So, it’s worth reaching out to a couple of physician mortgage lenders to learn more about eligibility requirements and financing options unique to your situation.

To get tailored quotes for your next home purchase or refinance, fill out the form below. You can also reach out directly to reputable loan officers who work with physician mortgages in Tennessee by clicking any of the email links provided throughout the article.