What you need to know:
- California physician home loans are available to doctors, dentists and other high-earning professionals who typically have significant student loan debt.
- Physician mortgage lenders offer up to 100% financing with no private mortgage insurance (PMI) requirement.
- Eligible borrowers can access high loan limits, ranging from $750,000 to $3.5 million, without using a jumbo loan.
California is home to about 12% of the U.S. population, boasting a diverse landscape, endless entertainment and my personal favorite: The California Burrito. But it’s an expensive place to live.
Data provided by the California Association of Realtors shows the median home sales price for the entire state was $796,570 as of December 2021. However, homes in Southern California and the Bay Area sold for much more. For example, the median sales price for Orange County was $1.18 million.
Whereas, the median price for the County of San Mateo was upwards of $2 million.
For many, homeownership in California is simply out of reach. Fortunately, doctors and dentists (and sometimes other high-earning professions) can take advantage of physician mortgage loan programs that come with exclusive benefits.
Read on to learn about physician home loans in California.
1. What is a physician mortgage loan? 2. 5 Lenders that offer physician home loans in California 3. Is a California physician home loan right for you?What is a physician mortgage loan?
A physician mortgage loan is a no- or low-money-down home loan solution available to doctors and dentists.
Depending on the lender, other high-earning professionals (e.g. attorneys, pharmacists, veterinarians, etc.) might also be eligible.
One of the biggest perks is that physician mortgage loans have no private mortgage insurance requirement, regardless of how much you bring to the table for a down payment. This can save you hundreds of dollars of PMI payments every month compared to a conventional mortgage.
Additionally, physician mortgage loan programs are designed to benefit professionals with large student debt balances at the beginning of their careers. You’ll benefit from more relaxed debt-to-income ratio (DTI) guidelines that treat student debt more favorably than a conventional loan.
These doctor mortgage loans also come with high loan limits. Many physician mortgage lenders max out at $1 million to $2 million.
But depending on the lender and your situation, you might be able to access even higher loan amounts up to $3.5 million.
Now, whether that’s a good or bad thing is entirely dependent on the borrower.
5 Lenders that offer physician home loans in California
Here’s an overview of some of the physician home loans in California for doctors and dentists. We’ve noted if other high-earning professionals are included for each lender.
Be aware that most lenders restrict their physician home loan program to only include primary residences. However, a limited number of lenders extend their program to second or vacation homes. To be clear, this product isn’t available for real estate investment properties.
1.
U.S. Bank
U.S. Bank offers business and personal financial services for healthcare professionals, including tailored home loans for medical physicians, doctors of osteopathy (DO), residents and fellows.
Loan options include:
- Up to 95% financing for up to $548,250 (up to $822,375 in select counties)
- 90% financing for up to $1.25 million
- 85% financing for up to $1.5 million
- 80% financing for up to $2 million
- 75% financing for up to $2.5 million
If your student loans are deferred, U.S. Bank will use 2% of your student loan balance when calculating your DTI ratio.
This product isn’t advertised online, so you’ll need to reach out directly for specific eligibility requirements and loan terms.
For more information, contact Jonathan Brozek at (916) 601-8782 or [email protected].
2.
Citizens Bank
Citizens Bank offers personalized plans and services for healthcare professionals. Its doctor loan mortgage program provides up to 95% financing for doctors and dentists for purchases and limited cash-out refinances of a primary home.
Loan options include:
- Up to 95% financing for up to $850,000.
- 89% financing for up to $1 million.
- 85% financing for up to $1.5 million.
Eligible borrowers include licensed DO, Doctors of Medicine (MD), Doctors of Dental Surgery (DDS) and Doctors of Dental Medicine (DMD) who’ve completed residency within the last 10 years. Additionally, current medical professional residents, fellows and interns might qualify.
3. KeyBank
KeyBank’s customized medical professional loans provide up to 100% financing for eligible medical doctors and dentists.
Loan amounts cap out at $3.5 million, which is much higher than most physician mortgage programs.
Loan options are available for purchase and cash-out refinances of owner-occupied primary residences and second homes.
4. Northpointe Bank
Northpointe Bank serves personal and business banking customers across the country, including via an Orange County location. Its doctor loan program is designed for medical and dental professionals with high student loan balances and limited savings.
Up to 100% financing is available for up to $1 million for purchasing or refinancing a home.
Eligible borrowers include MD, DDS, DMD, DO designations, as well as chiropractors (DC), doctors of optometry (OD), doctors of ophthalmology (MD) doctors of podiatric medicine (DPM)(DO), pharmacists (RPH), doctors of surgery (DCH) and doctors of veterinary medicine (DVM).
5. SunTrust (now Truist)
The SunTrust doctor loan is available to eligible practicing physicians and licensed residents, interns and fellows.
Residents, interns and fellows in an MD, DO or DPM program have access to loan amounts up to $750,000 with no money down.
Loan options for practicing physicians include:
- Up to 100% financing for up to $750,000.
- 95% financing for up to $1 million.
- 89.99% financing for up to $1.5 million.
Eligible borrowers include doctors and dentists with MD, DO, DPM, DDS and DMD designations with less than 15 years of experience post-training.
For doctors and dentists with more than 15 years under their belt, 89.99% financing is available for a variety of loan amounts.
Is a California physician home loan right for you?
Physician mortgage loans have a lot of perks with very little downside. If you’re eligible, it’s worth exploring your doctor home loan options with different lenders, along with other mortgage options (e.g. FHA loan or VA loan).
But be diligent in your home buying efforts. You’ll likely qualify for a much higher loan amount than you’re expecting, based on the flexible DTI and income requirements of this mortgage type.
Just because you qualify for a larger mortgage on paper doesn’t mean you should tank your finances for a more expensive property.
If you can’t safely afford a larger physician mortgage payment, keep your eyes focused on the homes you can realistically afford.
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 1.98-7.14% APR2 Fixed 2.49-7.04% APR2 3 Disclosures $1,000 BONUS3 For 100k or more. $200 for 50k to $99,9993 VISIT EARNEST Variable 1.74-7.24%3 Fixed 2.44-7.24%3 4 Disclosures $1,000 BONUS4 For 100k+. $300 bonus for 50k to 99k.4 VISIT SPLASH Variable 1.74-6.52%4 Fixed 1.99-6.25%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 1.74-7.24%6 Fixed 2.49-7.59%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 1.74-7.58%8 Fixed 2.15-7.83%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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