What you need to know:
- Virginia physician mortgage loans are designed to make homeownership easier for high-earning, high-student debt professions.
- This exclusive loan program doesn’t require private mortgage insurance (PMI), even with no or little money down.
- A doctor loan in Virginia may have a loan limit as high as $2 million (this could be a pro or con depending on your financial situation).
The average Virginia physician earns over $200,000 per year. But a high salary isn’t the only perk to being a doctor or dentist. Physicians can use a unique mortgage loan program that allows qualifying applicants to access large loan amounts, competitive interest rates and low down payment options when buying a home.
Many physician mortgage loans have up to 100% financing for new physicians and dentists. This is a game-changer for Virginia physicians who are facing a competitive housing market that might require offers well-over asking price.
According to Virginia REALTORS, the median Virginian home purchase price in September 2021 was $350,000 (up 6% from the same time last year).
Doctors, dentists and other high-earning medical professionals can learn about Virginia physician mortgage loan options below.
1. Physician mortgage loans 101 2. 4 Top Virginia physician mortgage loans 3. Is a Virginia physician mortgage loan worth it?Physician mortgage loans 101
A physician mortgage loan is typically an easier pathway to homeownership for doctors and dentists. This type of loan program is designed with your salary potential in mind. It also acknowledges that you’ll likely have a lot of student debt at the beginning of your career.
Benefits of a Virginia physician mortgage loan
Doctors, dentists and sometimes other high-earning professionals (e.g. veterinarians, dentists, attorneys, etc.) can take advantage of exclusive physician mortgage benefits like:
- Access to 100% financing or low down payment options. You can get into your dream home a lot faster since you won’t have to save up for a substantial down payment.
- No PMI requirement. This additional expense is usually required with a conventional mortgage if you don’t bring at least 20% for a down payment to the table. Avoiding PMI can save you hundreds of dollars each month.
- Relaxed debt-to-income (DTI) calculations. Your student loan debt can skew your DTI and affect your ability to secure a mortgage loan. But physician mortgage lenders treat student debt borrowers more favorably by using your income-driven repayment (IDR) monthly payment, excluding your deferred payments altogether or taking an alternative lenient approach.
- Generally lower interest rates than a jumbo loan. If you’re interested in financing more than $548,250 for your home (i.e. the conventional mortgage limit in most states), a physician mortgage can keep your interest rate low instead of turning to a jumbo loan.
There are also secondary benefits to using a doctor mortgage loan. For example, instead of depleting your savings on a down payment, you can use those funds to remodel or furnish your home.
There’s a lot of hidden expenses to buying a home that most people don’t consider ahead of time. Keeping that nice chunk of savings helps cover unexpected costs or gives you the flexibility to pay down other debt or make other investments.
4 Top Virginia physician mortgage loans
If you feel a Virginia physician mortgage loan is the right path for you, Student Loan Planner identified a handful of lenders offering the specialty mortgage loan.
1. First National Bank
Physicians with an MD, DO, DDS or DMD designation may be eligible for up to 100% financing with First National Bank’s Physician Mortgage Program.
It offers a wide range of fixed and adjustable-rate mortgages for purchasing or refinancing a primary, vacation or second home.
2. Fulton Mortgage Company
Dentists, physicians, pharmacists and veterinarians who have a medical doctorate degree may qualify for a physician mortgage loan with Fulton Mortgage Company.
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
Deferred student loans (12 months or longer) are excluded from the credit approval process. Additionally, new physicians can close on their home up to 90 days before their start date with an acceptable employment contract.
Contact James Webster for more information at (301-309-0488) ext. 15781 or [email protected].
3. SunTrust (now Truist)
Practicing physicians with an MD, DO, DPM, DDS or DMD designation can access up to 100% financing with SunTrust’s Doctor Loan Program.
Financing options include:
- 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 licensed residents, interns and fellows in an MD, DO or DPM program can qualify for up to 100% financing for a maximum loan amount of $750,000.
Additionally, doctors with more than 15 years of post-training experience are limited to 89.99% financing, regardless of the loan amount.
4. TD Bank
The TD Bank Medical Professional Mortgage is available to new physicians, dentists, surgeons, residents and fellows. Qualifying designations include MD, DO, DPM, DDS and DMD.
Financing options include:
- 0% down for up to $750,000
- 5% down for up to $1.25 million
- 10.01% down for up to $1.5 million
This loan program is only available for purchasing or refinancing a primary residence. Eligible properties include condos, single-family residences, co-ops (in specific markets) and property in planned unit developments (PUD).
Is a Virginia physician mortgage loan worth it?
Each physician mortgage lender has different eligibility requirements and loan terms. It’s important to reach out to any Virginia lenders you’re interested in to find the best option for your situation.
Compare physician loan programs with conventional mortgage rate offers and explore additional loan programs that you might qualify for. For example, you might be eligible for an FHA loan or VA loan.
Physician loans have much higher loan limits than conventional mortgages. If you decide to go with a physician mortgage, be diligent about buying a home that you can realistically afford to make payments on long-term.
Interested in exploring doctor loans across the country? Use our referral page to locate a physician mortgage loan in your desired state.
Check Out Physician Mortgage Options by State Refinance student loans, get a bonus in 2021 1 Disclosures $1,050 BONUS1 For 100k+. $300 bonus for 50k to 99k.1 VISIT LAUREL ROAD Variable 1.64-5.65%1 Fixed 2.25-5.75%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 1.88-5.64%3 Fixed 2.44-5.79%3 
4 Disclosures $1,000 BONUS4 For 100k+. $300 bonus for 50k to 99k.4 VISIT SPLASH Variable 1.87-6.15%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? Take our 11 question quiz to get a personalized recommendation of whether you should pursue PSLF, IDR forgiveness, or refinancing (including the one lender we think could give you the best rate).
Take Our QuizOriginal Article
