What you need to know:
- Physicians and dentists can apply for Massachusetts physician mortgage loans that offer generous financing options with no down payment.
- A physician mortgage loan doesn’t require traditional private mortgage insurance (PMI).
- Other high-earning professionals may qualify for a physician mortgage loan, depending on the lender.
The average Massachusetts physician earns about $188,000 a year, with some earning much more and some earning less. While that’s a great salary, physicians typically carry high six-figure student loan debt that can make major milestones like owning a home more challenging.
According to the Massachusetts Association of Realtors, the median price for a single-family home in August 2021 was $552,000. If you look at historical data, the median price was $120,000 less just two years ago. As housing prices continue to soar, securing a mortgage may become more difficult for medical professionals carrying high student loan balances.
Fortunately, many doctors and dentists across the state might qualify for a Massachusetts physician mortgage loan with huge benefits.
Read on to learn about physician mortgage loans in Massachusetts.
1. How do Massachusetts physician mortgage loans work? 2. 5 Massachusetts physician mortgage lenders to consider 3. Is a Massachusetts physician mortgage loan right for you?How do Massachusetts physician mortgage loans work?
Physician mortgage loans, often called “doctor mortgage loans”, are designed to meet the needs of high-earning, high-debt carrying medical professionals. They create a pathway to homeownership without the burden of a large down payment. But they come with other exclusive perks that can save you money.
Conventional loans typically require a 20% down payment. Otherwise, lenders require the homeowner to carry private mortgage insurance, or PMI for short. Depending on your home loan, PMI can cost hundreds of dollars each month.
Massachusetts physician loans don’t require PMI, regardless of your down payment amount. In fact, many physician mortgage lenders offer 100% financing (meaning $0 down) — while others might require 5% to 15% down depending on the loan amount you want to finance.
Additionally, this type of loan makes owning a home more attainable by treating student loan debt more favorably when assessing your credit risk. It also allows new physicians to secure a mortgage with proof of future income (e.g. job offer letter) instead of having to wait.
The main downside of a physician mortgage — and it’s a big one if you aren’t careful — is that they have loan limits often in the millions. That’s great if you can afford a million-dollar home. But if you can’t, you might still get approved for an amount well over what your budget will allow.
5 Massachusetts physician mortgage lenders to consider
If you’re still interested in pursuing a Massachusetts physician mortgage loan, consider contacting a mortgage loan officer from one of these lending institutions
1. Citizens Bank
The Citizens Bank Doctor Loan program provides up to $1.5 million in financing to eligible doctors and dentists. You might qualify for this Massachusetts physician mortgage program if you’re either:
- A licensed Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Dental Surgery (DDS) or Doctor of Dental Medicine (DMD) and have completed your residency within the last ten years, or
- A current medical resident, fellow or intern.
Financing options include:
- Up to $850,000 with 5% down
- Up to $1 million with 11% down
- Up to $1.5 million with 15% down
This program is available for purchases and limited cash-out refinances for your primary residence.
2. First Citizens Bank
First Citizens Bank provides up to 100% financing for purchases, new builds and refinancing your primary residence. This program is available to medical professionals with the following designations:
- MD, DO, DM, DPO, DDS and DMD, as well as
- Physician Assistant (PA), Certified Registered Nurse Anesthetist (CRNA), Certified Registered Nurse Practitioner (CRNP), or Doctor of Physical Therapy (DPT).
Other requirements for this Massachusetts physician mortgage loan program include:
- Minimum credit score of 700
- Proof of an employment contract or three years (or more) of tax returns
- Automatic payments from a First Citizens checking account
Note that First Citizens provides the option to split your mortgage into an 80/20 mortgage, but it isn’t a requirement. In this case, 80% of financing is through a traditional 15-, 20- or 30-year term mortgage and the remaining 20% is with a home equity loan.
3. KeyBank
The KeyBank Medical Professional Loan provides up to 100% financing for purchases and cash-out refinances of primary residences and second homes.
Medical doctors and dentists might be eligible for fixed or adjustable-rate mortgages of amounts up to $3.5 million.
Eligible property types for this Massachusetts physician mortgage include single-family homes, attached or detached, condos or planned unit developments.
4. Laurel Road
Laurel Road’s physician mortgage loan provides up to 100% financing for loans up to $750,000. Eligible medical professionals include:
- Licensed doctors, dentists, clinical professors, researchers and managing physicians with a degree of MD, DO, DMD, DDS, or Doctor of Podiatric Medicine (DPM), and
- Current residents, fellows and interns.
This Massachusetts physician mortgage loan program is available for primary residences. However, second homes can qualify with a larger down payment and additional restrictions.
Note that Laurel Road is owned by KeyBank.
5. TD Bank
The TD Bank Medical Professional Mortgage provides up to $1.5 million in financing to eligible physicians, surgeons and dentists. To qualify, you must be a:
- Practicing physician, dentist or oral surgeon (specifically MD, DO, DPM, DDS, DMD).
- Current medical or dental resident or fellow.
- Doctor or dentist who owns their own practice (or self-employed for at least two years).
Financing options include:
- Up to $750,000 with 0% down
- Up to $1.25 million with 5% down
- Up to $1.5 million with 10.01% down
This physician mortgage is available to purchase or refinance your primary residence.
Is a Massachusetts physician mortgage loan right for you?
Massachusetts physician mortgage loans have competitive mortgage rates and loan terms. But this exclusive type of loan also has significant perks for doctors and dentists.
You can realize your home-owning dreams much sooner with a physician mortgage considering you won’t have to spend years saving up for a large down payment.
Plus, you won’t tie up hundreds of dollars each month that would normally go to paying PMI with a conventional mortgage. That freed-up money can be used for home renovations, to pay down student debt or for making smart investments.
But these jumbo loans with relaxed requirements aren’t for everyone. It can be extremely tempting to buy more house than what you can afford, especially since physician mortgages often have high loan limits in the millions.
So, do your research and stick to your budget. Just because you get approved for more than you need, doesn’t mean you should sign for it — much like student loans.
Start your search for loan options by using our referral page for physician and dentist mortgage loans broken down by 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 COMMONBOND Variable 2.49-6.84%%1 Fixed 2.59-6.74%1
2 Disclosures $1,000 BONUS2 For 100k or more. $200 for 50k to $99,9992 VISIT EARNEST Variable 1.88-5.64%2 Fixed 2.44-5.79%2 
3 Disclosures $1,050 BONUS3 For 100k+. $300 bonus for 50k to 99k.3 VISIT LAUREL ROAD Variable 1.64-5.65%3 Fixed 2.25-5.75%3 
4 Disclosures $1,275 BONUS4 For 150k+. Tiered 300 to 575 bonus for 50k to 149k.4 VISIT ELFI Variable 2.39-6.01%4 Fixed 2.47-5.99%4 
5 Disclosures $1,000 BONUS5 For 100k+. $300 bonus for 50k to 99k.5 VISIT SPLASH Variable 1.88-6.15%5 Fixed 2.49-6.31%5 
6 Disclosures $1,000 BONUS6 For $100k or more. $200 for $50k to $99,9996 VISIT SOFI Variable 2.25-6.59%6 Fixed 2.49-6.94%6 
7 Disclosures $1,250 BONUS7 $350 for 50k to 100k7 VISIT CREDIBLE Variable 1.80-8.90%7 Fixed 2.15-9.15%7 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).
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