5 Best Physician Mortgage Loans in Vermont: Up to 100% Financing

When my physician wife and I were considering taking a job at the Dartmouth-Hitchcock Medical Center in New England, I posted in a Facebook group requesting to hear the pros and cons of living in Vermont, and I almost started a digital riot. The pro-Vermont and pro-New Hampshire crowd clearly had strong opinions, and I saw the intense passion residents of the Green Mountain State have for all that Vermont has to offer.

Although one of the smaller U.S. states, Vermont is a destination for many medical professionals and their families. But the soaring cost of housing in Vermont and rising interest rates have made homeownership more difficult than ever. According to Vermont Business Magazine, the average home price in Vermont increased by 16.9% from 2022 to 2023, coming out to $386,285 for the average price in 2023.

Fortunately, physicians, dentists and other medical professionals can utilize a physician mortgage loan to buy their dream home faster.

How are Vermont physician mortgage loans different? 

Physician mortgages have much higher limits than conventional mortgages, while still offering the chance to pay as little as 0% down.

Conventional mortgages have a $726,200 limit in most places, leading many physicians and dentists to turn to a jumbo mortgage to purchase their homes right out of training.

However, when we applied for a jumbo mortgage, the interest rates we got back were 1% higher than conventional. Physician home loans have interest rates comparable to conventional while accepting lower down payments than even FHA mortgages in some cases.

If you had planned on a large down payment, you could use that cash for other important aspects of homeownership, such as renovations and furnishing your new place.

Banks usually require you to have an MD, DO, DDS or DMD degree to qualify for this unique type of home loan. That said, many banks have decided to expand doctor mortgages into “professional mortgages” for other medical professionals, lawyers and accountants.

Physician mortgage loan benefits include:

• No PMI requirement
• Favorable treatment by underwriting due to your medical or dental education
• Small and flexible down payment choices for home mortgages that are well into the seven figures

You can start the quote process with the form below or keep reading to learn more.

Top 5 Vermont physician mortgage loans

If you want to see if a Vermont physician mortgage loan is right for you, check out the group of lenders below to start your search.

1. Berkshire Bank

Berkshire Bank is the largest regional bank in New England, having been around since the 1840s. It offers physician mortgages through its Doctor’s Advantage Home Loan program.

Through Berkshire Bank’s Doctor’s Advantage Home Loan, you can put as little as 5% down on mortgage loans up to $850,000. You can also use them for home equity loans and lines of credit.

Eligible homebuyers include physician, dentist and veterinarian residents (or fellows currently employed in residency of fellowship), practicing physicians (MD, DPM or DO), practicing dentists (DDS, DMD), oral surgeons and practicing veterinarians. Practicing doctors must be out of residency/internship/fellowship for less than ten years. Non-practicing doctors, such as those in academia or research, are not eligible.

Berkshire Bank also offers home equity loans and lines of credit. Eligible properties include single-family, condominiums, planned urban development and non-warrantable condominiums. PMI is not required, and the maximum DTI ratio is 45%.

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

Berkshire has 30-year fixed and 15-year fixed options, as well as the 7/6 and 5/6 ARM (adjustable rate mortgage) products.

Reserves are required and the range is two to six months of your monthly mortgage payment. Plus, 1099 independent contractor work for less than 12 months is allowed.

If you're a recent graduate, you can use projected income for qualifying purposes if you're scheduled to start a new job within 90 days of the loan closing.

Contact: Stephen Morrison

*Mortgage products are provided by Berkshire Bank: Member FDIC. Equal Housing Lender. Berkshire Bank is a Massachusetts chartered bank. All applications must be submitted in writing. All lending products are subject to credit and property approval. Products are not available in all states. Certain conditions and restrictions apply. Refinancing to reduce total monthly payments may lengthen repayment term or increase total interest expense compared with your current situation. Berkshire Bank NMLS 506896. Equal Housing Lender.

2. 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 Vermont student loan debt, are starting residency soon, and have an employment contract with a start date within 90 days of closing. 

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

Read our full BMO Bank, N.A. review

3. Huntington Bank

The doctor mortgage program at Huntington Bank is available to dentists, physicians and veterinarians.

Loan choices include:

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

If you’re just finishing training, you can put as little as 0% down with a letter from your employer and proof of an employment contract. This is especially helpful as a first-time home buyer.

4. TD Bank

TD Bank offers doctor home loans for physicians and dentists exclusively. You can also qualify while you’re still in residency or fellowship.

TD Bank offers the following financing choices:

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

While Vermont’s high state income tax, many physicians might want to itemize mortgage interest on their tax returns. A TD Bank doctor loan with no PMI and a low down payment can allow you to borrow more for your house and pay down less tax-efficient student debt more rapidly.

When I bought my home with a physician mortgage (thanks to my wife’s medical degree), TD Bank came in second among the lenders we looked at. The bank we went with was regional to North Carolina where we live and does not lend in Vermont.

Contact: Neil Surgenor

5. U.S. Bank

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

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

Is a Vermont physician mortgage loan right for you?

In today’s real estate market, most physicians, dentists and other medical professionals will have a more difficult time than in the past using a conventional mortgage while also purchasing the home they want.

Given that mortgage interest is also tax-deductible if you itemize, and student loan interest is generally not, a doctor mortgage could be just the thing that allows you to buy your next house in Vermont.

If you’re ready to start the home buying process, fill out the quote form below.