What you need to know:
- An Ohio physician mortgage loan comes with high loan limits and options for up to 100% financing.
- Student loan payments are typically treated favorably with a doctor loan, making it easier to qualify for a mortgage.
- Physician mortgages don’t require private mortgage insurance (PMI) even with a 0% down payment.
Buying a home is a big milestone that often comes with many hurdles, from saving a large down payment to meeting eligibility requirements and navigating a competitive market.
According to Ohio REALTORS, the average home sales price in the Buckeye State was $242,561 in September 2021. Compared to many housing markets across the country, that’s a reasonable amount. But when you consider that most physicians have high six-figure student debt, it can make owning a home with a conventional mortgage more challenging.
Doctors and dentists can benefit from exploring physician mortgage loans designed with their career trajectory in mind.
Read on to learn more about physician mortgage loans in Ohio.
1. What is a physician mortgage loan? 2. 5 Ohio physician mortgage loans 3. Should you take out an Ohio physician mortgage loan?What is a physician mortgage loan?
A conventional mortgage will typically require you to bring 20% of the home purchase price to the table. Otherwise, you’ll pay for private mortgage insurance (PMI) each month until you’ve built enough equity in your home.
In contrast, a physician mortgage loan offers doctors and dentists exclusive benefits, including:
- No-money-down options. Most physician mortgage loans offer 90% to 100% financing for qualifying borrowers.
- No PMI. Even if your down payment is a goose egg, you won’t be required to pay PMI as a monthly payment or lump sum.
- Relaxed income requirements. Many physician mortgage lenders allow you to close on your home up to 90 days before starting a new job with an acceptable employment contract as proof of income. Conventional loans require at least a two-year employment history, making Ohio doctor home loans a huge benefit for new physicians.
- Favorable treatment of student loans. Physician loan programs know you’ll have high student debt, so they’ll usually treat student loans differently when calculating your debt-to-income (DTI). For example, many will use your actual monthly payment on an income-driven repayment (IDR) plan or exclude your student loan debt altogether if your loans are deferred.
Additionally, physician loans have much higher loan limits upwards of $1 million or more. While this is a nice perk, it can also get you into trouble if you sign for a mortgage you can’t safely afford.
5 Ohio physician mortgage loans
Physician mortgage loans aren’t just limited to medical doctors anymore. Depending on the lender, veterinarians, nurse anesthetists, attorneys and other high-debt, high-earning professions may qualify.
Here are some of the top Ohio physician mortgage loans to consider.
1. Fifth Third Bank
Fifth Third Bank, headquartered in Cincinnati, provides financing for purchasing or refinancing a primary residence. It offers financing options for established physicians and dentists with an MD, DO, DPM, DDS or DMD designation. Physician mortgage loans are for amounts up to $750,000 with no down payment or up to $1.5 million with a low down payment.
Medical professionals, including residents, fellows and new physicians, can also qualify for up to $750,000 with 0% down. But Fifth Third Bank caps its loan amount at $1 million with a low down payment.
2. First Federal Lakewood
First Federal Lakewood, headquartered in Lakewood, offers Doctor and Resident Loans with special rates and up to 100% financing. Qualifying professions include medical doctors, residents, dentists, podiatrists, ophthalmologists and veterinarians.
With this physician mortgage option, your student loans might be excluded from your debt-to-income calculation.
As a bonus to doing business with this bank, you’ll be helping to reinvest in your community. First Federal Lakewood gives 5% of its net profits back to over 150 organizations in the communities they serve.
3. Huntington Bank
Huntington Bank, founded and headquartered in Columbus, provides physician mortgages for medical doctors with an MD, DO, DDS, DVMM or DMD designation.
Financing options include:
- Up to 100% financing for up to $1 million
- Up to 95% financing for up to $1.25 million
- Up to 90% financing for up to $2 million
The overall maximum refinance loan amount is $2 million with a maximum cash-out option of $250,000.
4. Laurel Road
Laurel Road is well-known for student loan refinancing, but it also offers mortgage lending for interns, residents, fellows, doctors, dentists, clinical professors, researchers and managing physicians. Qualifying designations include MD, DO, DMD, DDS or DPM.
Owned by KeyBank, Laurel Road provides up to 100% financing for up to $750,000 for purchasing your primary residence. Financing options are available for second homes, as well, but a larger down payment might be required.
5. Northwest Bank
Northwest Bank offers a handful of programs (e.g. First Time Homebuyers and Affordable Home Program) designed to make homeownership more attainable. It also provides physicians and residents with MD, DO, OD, DDS, DMD or DPM designations access to loan amounts up to $1.25 million.
Its Physician’s Loan Program comes with down payment requirements as low as 0% and fixed-rate or adjustable-rate mortgage options. Financing options include:
- Up to 100% financing for up to $750,000
- Up to 95% financing for up to $1 million
- Up to 90% financing for up to $1.25 million
Contact: Mike Woogerd, (419) 571-3644 or [email protected]
Should you take out an Ohio physician mortgage loan?
Ohio physician mortgage loan programs are designed for professionals who have a lot of student debt but also a high earning potential over the course of their careers.
New and established practicing physicians (usually capped at 10 years post-training) can own a home with no or a low down payment, making homeownership a reality sooner than expected.
However, you’ll still need to compare rates and terms with other mortgage options (e.g. FHA or VA loan) to ensure you’re using the most beneficial program for your situation.
Regardless of how much you get approved for with a physician mortgage loan or another loan program, limit your home purchase to less than two times your household income to keep your debt manageable.
If a physician mortgage loan is in your future, find a doctor mortgage loan in your state today.
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 2.39-6.01%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).
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