Student Loan

7 Best Lenders for Physician Mortgage Loans in Illinois

Jan 15, 2022 3 years ago

What you need to know:

Physician mortgage loans in Illinois offer benefits to eligible doctors, dentists and other high-paying professionals who carry large student debt balances.
This exclusive program offers up to 100% financing without private mortgage insurance.
Your student loan debt is treated more favorably when applying for a physician mortgage loan.

Whether you’re a new or established physician, it can be difficult to secure a mortgage when you’re lugging around six figures worth of student debt. Fortunately, some mortgage lenders recognize the career trajectory of doctors and dentists and see it as a win-win opportunity.

According to data from Illinois REALTORS, the median sale price of a home in Chicago in November 2021 was $327,000. But depending on where you want to live and the area’s real estate competition, you could be looking at a higher price tag. This is when physician mortgage loans in Illinois are useful.

What makes a physician mortgage loan different? 2. 7 Top physician mortgage loans for Illinois doctors and dentists 3. Physician mortgage loans save you money if used responsibly

What makes a physician mortgage loan different?

A physician mortgage loan comes with exclusive homeownership benefits that cater to high-earning, high-student debt professionals.

Unlike with a conventional loan, a physician home mortgage opens the door to special privileges like:

No money down financing options. Many lenders offer up to 100% financing, which means you can close on a new home with $0 down.
No private mortgage insurance (PMI) requirements. This saves you thousands of dollars each year.
Flexible debt-to-income (DTI) underwriting guidelines.
Your debt-to-income ratio won’t be as heavily impacted by your student debt.
Relaxed income history requirements. If you’re a new physician, you can use an employment contract with a start date typically within 60 to 90 days of closing.

Physician mortgage options also have larger loan limits, often ranging from $750,000 to $1.5 million or more. Whether a higher limit is advantageous to you depends on your real estate goals. Either way, it gives you more options if you can safely afford a large mortgage payment.

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7 Top physician mortgage loans for Illinois doctors and dentists

Here are some of the best physician mortgage loans in Illinois.

Keep in mind that physician mortgage loans are designed for primary residences, not investment properties. That said, a limited number of lenders allow the purchase of a second or vacation home.

1. BMO Harris Bank

Eligible healthcare professionals can take advantage of the BMO Harris Physicians’ Mortgage Program when buying or refinancing a primary residence. Qualifying properties include one-two unit, single-family, condominium and townhomes in Illinois.

Financing options include:

5% down for up to $1 million.
10% down for up to $1.5 million.
10% down for physicians that have been in practice for more than 10 years (regardless of loan amount).

This program is open to residents, fellows and existing medical doctors with an MD, DDS, DMD or DO designation.

Note this doctor loan program is also available for eligible properties in Arizona, Florida, Indiana, Kansas, Minnesota, Missouri and Wisconsin.

2.
Fifth Third Bank

New and established doctors and dentists can use Fifth Third Bank’s physician mortgage loan to purchase or refinance a primary home. Qualifying degree designations include MD, DO, DPM, DDS and DMD.

Licensed interns, residents and fellows (and new physicians that have completed residency within the last 12 months) can finance:

Up to $750,000 with no down payment.
Up to $1 million with a low down payment.

Established doctors and dentists with more than one year of experience can take advantage of no down payment options with a $750,000 loan maximum, as well. However, they can access up to $1.5 million with a low down payment.

3. Huntington Bank

Medical doctors in Illinois with an MD, DO, DDS, DVM or DMD designation might be eligible for the Huntington Bank physician mortgage program.

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.
Maximum cash-out refinance option of $250,000.

Huntington Bank also operates in Colorado, Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Dakota and West Virginia.

4.
Northpointe Bank

Northpointe’s Doctor Loan program provides financing for up to $1 million with $0 down for purchasing or refinancing a home.

Qualifying professions include:

Chiropractors (DC)
Medical Doctors (MD)
Doctors of Dental Surgery (DDS)
Doctors of Dental Medicine (DMD)
Doctors of Optometry (OD)
Doctors of Ophthalmology (MD)
Doctors of Osteopathy (DO)
Doctors of Podiatric Medicine (DPM) (DO)
Pharmacists (RPH)
Doctors of Surgery (DCH)
Doctors of Veterinary Medicine (DVM)

New doctors must have a signed employment contract with a start date no less than 90 days from closing.

5. Regions Bank

The Regions Bank physician mortgage program is available to doctors and dentists in a handful of states across the country, including Illinois. This program is limited to existing homes, meaning you can’t use the funds to build a home.

Financing options include:

0% down for up to $750,000.
5% down for up to $1 million.

Note that you’ll need to open a checking account with Regions to qualify for this mortgage program.

For more information, contact Timothy Candon at (919) 784-8219 or [email protected].

6. SunTrust (now Truist)

The SunTrust Doctor Loan program provides eligible physicians with exclusive perks, like lower interest rates and favorable student debt treatment.

Licensed residents, interns and fellows in an MD, DO or DPM program might be eligible for a maximum home loan of $750,000 with $0 down.

Whereas, establish physicians (MD, DO, DPM, DDS, DMD) have access to the following financing options:

0% down for up to $750,000.
5% down for up to $1 million.
10.01% down for up to $1.5 million.

Note that physicians with more than 15 years of experience post-training are limited to 89.99%, regardless of loan amount.

7.
U.S. Bank

U.S. Bank’s physician mortgage loan provides up to 95% financing to eligible MDs and DOs, including residents and fellows.

Financing options include:

5% down for up to $548,250 (up to $822,375 in select counties).
10% down for up to $1.25 million.
15% down for up to $1.5 million.
20% down for up to $2 million.
25% down for up to $2.5 million.

For more information, contact Jonathan Brozek at (916) 601-8782 or [email protected].

Physician mortgage loans save you money if used responsibly

Physician home loans are designed to benefit medical professionals who usually start their careers with a lot of dental or medical school debt and a lower salary. These programs are great for physicians who are early in their career but ready to settle down into a home they can call their own.

Since physician loan programs come with relaxed income and DTI requirements, you’ll likely qualify for a loan that’s a lot more than you’d expect.

This increased access to a high mortgage limit can be tempting, play it safe by searching for homes in your actual budget.

Research and compare various mortgage loan programs to find the best option for you.

Check Out Physician Mortgage Options by State Refinance student loans, get a bonus in 2022 1 Disclosures $1,050 BONUS1 For 100k+. $300 bonus for 50k to 99k.1 VISIT LAUREL ROAD Variable 1.89-5.90%1 Fixed 2.50-6.00%1 2 Disclosures $1,050 BONUS2 For 100k+. $300 bonus for 50k to 99k.2 VISIT COMMONBOND Variable 2.49-6.84%%2 Fixed 2.59-6.74%2 3 Disclosures $1,000 BONUS3 For 100k or more. $200 for 50k to $99,9993 VISIT EARNEST Variable 1.74-5.64%3 Fixed 2.44-5.79%3 4 Disclosures $1,000 BONUS4 For 100k+. $300 bonus for 50k to 99k.4 VISIT SPLASH Variable 1.74-6.15%4 Fixed 2.30-6.25%4 5 Disclosures $1,275 BONUS5 For 150k+. Tiered 300 to 575 bonus for 50k to 149k.5 VISIT ELFI Variable 1.86-6.01%5 Fixed 2.47-5.99%5 6 Disclosures $1,000 BONUS6 For $100k or more. $200 for $50k to $99,9996 VISIT SOFI Variable 1.74-6.59%6 Fixed 2.49-6.94%6 7 Disclosures $1,250 BONUS7 For $100k or more. $100 to $350 for $5k to $99,9997 VISIT LENDKEY Variable 1.90-5.25%7 Fixed 2.49-7.75%7 8 Disclosures $1,250 BONUS8 $350 for 50k to 100k8 VISIT CREDIBLE Variable 1.80-9.99%8 Fixed 2.15-9.99%8 Not sure what to do with your student loans?

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