- Truist offers a physician mortgage loan of up to $2 million.
- Available to most doctors and dentists, but not nurses or physician assistants.
- Only offered in some states and has fixed- and adjustable-rate mortgage loans.
If you’re a doctor or dentist, you’ve likely taken out medical student loans to fund your education. You might earn a good income now, but six-figure student loan debt might plague your ability to secure financing for your next home.
What’s not advertised very often is that many financial institutions have physician mortgage loan programs with attractive terms and zero or low down payment requirements. One lender on the market is Truist Bank, which is the new entity after SunTrust and BB&T merged. Read on for Student Loan Planner’s full Truist physician loan review.
Lowest down payment
Zero down if within 10 years of training. 10% down for those who are 10 to 15 years past training.
Maximum loan amount
How they treat student loans
Considered, but lenient.
Degrees that qualify
MD, DO, DPM, DDS, DMD
AL, AR, CA, CT, DE, DC, FL, GA, IN, KY, MD, MA, MS, NJ, NC, OH, PA, SC, TN, TX, VA, WV
Truist physician mortgage details
Truist is a financial institution that offers a physician mortgage loan to qualified medical professionals. You can bypass some traditional lending requirements and get attractive terms. Here are the basic details of a Truist physician loan.
Truist physician mortgage loan: pros and cons
Getting a doctor mortgage loan can be a good option for doctors and dentists who want to pursue homeownership. Although medical doctors can get a piece of real estate despite high student loan debt through this loan, it’s still a form of debt.
Consider your monthly payment, debt-to-income ratio (DTI) and repayment terms before proceeding.
What mortgage product would you like a quote for?
What is Your Occupation Status Currently?
Are you currently working with a realtor?
Are you a veteran?
What most closely represents the price range of the house you’re searching for?
What is your preferred down payment?
What stage are you at in the home buying process?
How soon do you hope to secure a mortgage approval?
How many banks would you like quotes from?
Have you experienced any bankruptcies or short sales?
State where you want to purchase your home
Metro area where you would like to purchase your home
Would you like to add any additional details?
Truist physician mortgage loan pros
High maximum loan amount
With a maximum loan amount of $2 million, you can get approved for a large amount of financing to buy your dream home. Of course, be financially responsible and only borrow what you can afford. But if you live in a higher cost of living city, this high maximum loan amount can be helpful.
Available in many states
If you’re looking for a doctor home loan, you have to find a mortgage lender that works with borrowers in your state. The good news is that Truist is available in 22 states for a physician mortgage loan. For Truist account holders, 25 more states open up and can qualify for this type of home loan. That’s 47 states, which covers a large population of doctors.
Possible to get a cash-out refinance
A cash-out refinance is when you refinance your mortgage and tap the equity in your home. You can get approved for a larger amount and use the remaining funds to pay off debt. Truist allows you to refinance up to 80% of your appraisal value.
Borrowers can take up to $50,000 in cash, with all other money going toward debt. This is a unique financial tool that could potentially help you if you need it.
For example, if you wanted to streamline payments and consolidate debt. Just be aware of missing out on federal loan forgiveness options if you take on any refinancing.
Truist physician mortgage loan cons
Timeframe from training
The Truist physician loan is geared toward new doctors or who completed their training within the past 10 to 15 years. The bank offers up to 100% financing if you’re within a decade of completing your training. It offers 89.99% of financing if it’s been 10 to 15 years since you’ve completed training.
Beyond that, check eligibility and financing requirements. This may be a downside and can affect your required down payment and if you qualify.
Doesn’t cover other medical professionals
Generally, the Truist physician loan is designed for doctors and dentists. Unfortunately, optometrists and other medical professionals, such as nurses and physician assistants, are left out. If you fall into those categories, you won’t qualify.
Potential for borrowing too much
On one hand, being able to take on a Truist physician loan up to $2 million can give you more options in your home buying journey. On the other hand, with little-to-no money down, plus a large mortgage payment, you could take on too much debt.
That means higher monthly payments. It’s important to practice financial wellness and find balance between income, savings, investing and debt reduction. Taking on too much can throw off the balance and make day-to-day life more difficult.
How to apply for a Truist physician loan
If you want to move forward with a Truist physician loan, here are next steps to apply.
Step 1: Contact Truist
Knowing someone who can help you is key when applying for a Truist physician loan. You can contact Matt Albert at Truist via phone at (336) 439-3560. Matt can get you started with the process and offer answers about what documentation might be required.
Step 2: Prepare your paperwork
After taking the initial step to get a Truist physician loan, prepare your paperwork for the mortgage application. This can include important financial documents such as pay stubs, tax returns and any employment contracts. In fact, it’s possible to get a mortgage with Truist 90 days from starting a new job with proof of contract and official start date.
If you have a visa, include that, too. Green card holders can apply for maximum loan-to-value (LTV) while H-1B visa holders can apply for up to 85% LTV. You might also need to provide your degrees and medical licenses, and any relevant paperwork.
Be aware of the terms and interest rates you want. For example, Truist offers 30-year fixed rate mortgages, 15-year fixed rate mortgages, and 10-, 7-, and 5-year ARM mortgage products. You can set up biweekly payments and take advantage of no prepayment penalties.
Step 3: Apply for the Truist physician loan program
After contacting Matt and preparing the required paperwork, submit all of your documents and apply for a Truist physician loan. Read through everything with a fine-toothed comb and understand the total costs (including closing costs) over the life of the loan.
Sign and review disclosures and get ready to buy your home.
Should you apply for a physician mortgage with Truist?
The Truist physician loan is available to doctors and dentists in many different states. That access alone can make it an appealing option. Plus, its unique cash-out refinance feature and high borrowing limit can help you get into the home you want.
Always check rates and options with other mortgage lenders as well before taking on this type of financial commitment. You can compare other physician loan lenders and fill out the mortgage form below to get started.