SouthState Bank Physician Mortgage Loan Review: Zero Down and No PMI

Many medical doctors, dentists and veterinarians have a lot of student loan debt, which can limit traditional mortgage options, due to a high debt-to-income ratio. Additionally, residents might have difficulty saving up for a down payment toward their dream home.

Some financial institutions, like SouthState Bank, offer access to special homeownership programs that offer flexible underwriting and credit history requirements to physicians, dentists and veterinarians. 

Here’s what to know about SouthState’s physician mortgage loan program.

SouthState Bank physician mortgage loan details

SouthState Bank has many of its branches in South Carolina. It’s a member FDIC and offers a number of banking products, including deposit accounts, credit cards and home loans, including physician mortgages.

SouthState offers physician mortgage loans to residents as well as practicing physicians, including doctors, dentists and veterinarians. It’s part of NMLS, meaning it meets applicable state licensing program requirements.

Minimum down payment	5% down for up to $1.5 million 10% down for up to $2.25 million
Residents or fellows allowed	Yes
Maximum loan amount	$2.25 million
Degrees that qualify	MD, DO, DDS, DMD, DVM
Eligible states	FL, AL, GA, NC, SC, VA

SouthState Bank physician mortgage loan: Pros and cons 

It can be difficult to meet the requirements of a conventional mortgage to get a new home after medical school or during a residency. This is where doctor loan programs can help. It’s even possible to get jumbo loans of more than $1 million when you use a program like that offered through SouthState Bank.

Before moving forward with any program, understand its pros and cons.

SouthState Bank physician mortgage loan pros

Special financing options are available for those with degrees as physicians, dentists and veterinarians, including residents.

Up to 100% financing

SouthState Bank offers a no down payment option on a home purchase price of up to $1.5 million. There are also low down payment options of 5% and 10% for homes of up to $1.5 million and $2.25 million, respectively.

If you’re trying to figure out your payments and interest rates based on down payments, you can use a physician mortgage calculator to run the numbers on a sample principal. 

Buy a secondary home

Many doctor loan programs require you to only purchase a primary residence. However, the physician loan program at SouthState offers you the ability to purchase a secondary home. You can also use the money for a new home once it’s completed.

No PMI

Many physician loans don’t charge private mortgage insurance (PMI); StateBank is no exception. Even if you don’t put 20% of your purchase price down, you can still avoid PMI when you get a physician mortgage through SouthState Bank.

SouthState Bank physician mortgage loan cons

When reviewing home financing options, consider some of the disadvantages that might come with a physician mortgage loan program.  

Small down payments can lead to higher monthly payments

Doctor mortgage programs offer the chance to get jumbo loans that you might not have access to with more conventional loan types. However, this can cause problems during repayment.

You might have higher monthly payments and feel house-poor. You might also have a higher interest rate with these loans.

Credit score requirements

While every lender is different, needing a credit score of at least 700 isn’t uncommon to qualify for a physician mortgage. If you don’t meet those requirements, you might need to consider alternatives, like FHA loans.

Limited availability 

You might not be eligible for a mortgage loan from SouthState Bank programs if you live outside the service area. Double-check that the real estate you plan to buy is in the service area and that you meet the qualifications for the loan program.

Other home loan lenders might offer their own doctor and medical professional loan programs, so compare different lenders to see what’s available.

How to apply for a SouthState Bank physician mortgage loan 

Compare at least three lenders as you research the best physician home loan for your situation. Consider closing costs, disclosures, credit history requirements, underwriting and other terms, to determine the best deal for your circumstances. 

Also, compare your doctor loan terms to conventional home loans or government-backed loan programs, such as an FHA loan, VA loan or USDA loan.

Your mortgage loan officer can help you understand how to move forward. Here are some common steps you need to take to apply for a doctor mortgage:

Step 1: Contact SouthState Bank

You can go to the SouthState website for more information or fill out the information form below.

Be ready with the following information before you reach out:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Purchase price
• Property location 
• Property zip code 
• Degree
• Employment contract
• Proof of medical license

Step 2: Gather necessary documentation 

Every lender requires their own documentation. Your SouthState Bank mortgage loan officer can help you figure out exactly what you need. Some common documents you might need include:

• Purchase agreement
• Employment contract
• Pay stubs
• Recent bank statements
• Tax returns
• Driver’s license or other ID
• Other documents, as requested

The more information you have, the faster you’re likely to close.

Step 3: If approved, accept the loan 

Once approved by SouthState, decide whether to move forward. Review the documents, disclosures and terms to verify that everything matches what you were told when comparing lenders.

Should you apply for a SouthState Bank physician mortgage loan?

Run the numbers and use a mortgage calculator to see if a physician mortgage loan makes sense for your personal finance situation. Your specialized profession might provide access to unique financing options for your dream home, even with a small down payment.  

Before moving forward, compare SouthState Bank to other physician mortgage lenders, as well as other mortgage products. Depending on your situation, a different program might make more sense than a physician loan. 

Fill out the form below for more information about getting a loan from SouthState Bank or other doctor loan programs.