Citizens Bank Physician Mortgage is a loan explicitly tailored for Doctors and provides flexible underwriting and competitive rates.
As a new medical student graduate, you may find that pursuing a traditional home loan is a viable option.
However, the situation becomes more complex for those burdened with substantial debt.
The typical medical student in the US carries a debt ranging from $200,000 to $300,000, which can significantly impact their credit score.
Unfortunately, qualifying for a conventional mortgage to finance a primary residence can become exceedingly difficult without a favorable credit score.
Fortunately, the Citizens Bank physician mortgage program offers a solution by providing specialized financing through a national bank.
Keep reading to learn if Citizens Bank Physician Mortgage should be at the top of your list if you’re a doctor looking to buy a home.
Citizens Bank Physician Mortgage: Overview
Citizens Bank offers physician mortgages explicitly tailored for doctors. With a physician mortgage from Citizens Bank, you can qualify for a home loan with a lower down payment, often just 5% down.
you can borrow up to $1.5 million and choose between 10 to 30-year terms. You can also get approved before you start your new job or residency.
You can choose an interest-only period or lower payments at the start, with gradual increases over time as your salary rises. There are no PMI or prepayment penalties either.
The Doctor Loan Program is open to the following individuals:
- Licensed medical doctors (MD and DO) and dentists (DDS and DMD) who have been practicing for no more than ten years.
- Research physicians.
- Self-employed medical professionals with a two-year history of self-employment can apply.
- Newly licensed residents who are currently employed or in residency.
- Medical residents about to start their new employment or residency within 60 days of the mortgage closing.- Recent medical graduates with a residency contract within 60 days of closing have yet to obtain a license.
Pros and Cons of Citizens Bank Physician Mortgage
It’s always best to weigh the advantages and drawbacks of any financial decision.
Before rushing to apply for Citizens Bank’s physician mortgage, considers its pros and cons.
Pros
If you’re a doctor looking to buy a home, the Citizens Bank Physician Mortgage should be at the top of your list.
Here are a few reasons why:
1. Low Minimum Credit Score Requirement
Citizens Bank offers physicians’ mortgage loans with a minimum credit score requirement of 700, making it more accessible for borrowers with considerable debt than other banks that often demand a minimum score of 720 or above.
2. Flexible Financing Options
The program provides various mortgage terms, such as 5% down to $850,000 and 11% down to $1,000,000, allowing borrowers with different financial situations to qualify for the mortgage.
3. Generous Maximum Loan Limit
The program allows for a loan limit of up to $1,500,000, higher than many similar programs that cap loans at $1 million.
4. Wide Eligibility Criteria
The Citizens Bank Physician’s Mortgage program is available to a broad range of medical professionals, including practicing physicians, medical residents, doctors of medicine in dentistry, and self-employed medical professionals, among others.
5. High Debt-to-Income (DTI) Ratio Approval
Even applicants with relatively high DTI ratios can still be approved for the mortgage.
This is beneficial as traditional mortgages usually require a lower DTI ratio to be considered less risky by lenders.
6. Multiple Mortgage Types
Borrowers can choose from various mortgage types, including fully-amortizing fixed-rate mortgages, adjustable-rate mortgages, and an interest-only option (available on select adjustable-rate programs).
7. No Private Mortgage Insurance (PMI) Requirement
Citizens Bank does not mandate private mortgage insurance, leading to lower monthly payments for borrowers.
8. Student Loan Debt Exclusion
Borrowers can exclude their deferred student loans for at least 12 months from their debt-to-income ratio, making it easier to qualify for the mortgage.
Additionally, income from employment contracts can be considered, facilitating homeownership.
Cons
While the Citizens Bank doctors loan has many benefits, there are also potential drawbacks to consider:
1. Limited to Primary Residence
The mortgage program is only available for primary residences (new mortgages or refinancing), and borrowers must supply a down payment; no 0% down loans are offered, unlike other physician’s mortgage programs.
2. Limited Residence Types
The mortgage program can only finance the purchase of condos or homes in planned unit developments (PUDs), such as townhouses, excluding detached single-family homes.
3. Geographic Restrictions
The program is only available in specific states, limiting its availability to many residents.
Citizen’s Bank physician Mortgage is not available in the following states:
- Connecticut,
- Delaware,
- Georgia,
- Illinois,
- Indiana,
- Kansas,
- Kentucky,
- Louisiana,
- Massachusetts,
- Maryland,
- Maine,
- Michigan,
- Mississippi,
- Missouri,
- New Hampshire,
- New Jersey,
- New York,
- North Carolina,
- Ohio,
- Pennsylvania,
- Rhode Island,
- South Carolina,
- Tennessee,
- Vermont,
- Virginia, and
- West Virginia.
How to Apply for the Citizens Bank Physician Mortgage
To apply for the Citizens Bank physician mortgage application process, visit their website and click the designated link to locate a loan officer.
Alternatively, you can contact a representative by calling 1-888-514-2300.
When applying for a home mortgage, you must typically provide various personal details for underwriting purposes.
These may include:
- A letter confirming acceptance into your residency/fellowship program with the specified employment start date.
- Previous years’ tax returns.
- Detailed information regarding your current personal debts.
- Proof of your educational background and degrees.
- Evidence of your professional licensing.
- The most recent bank statements.
- Your social security number.
Other Options For Physician Mortgages
Other than Citizens Bank, several alternatives are available for doctor home loan programs that are gaining popularity. Here are a few options:
1. Bank of America
This nationwide lender offers physician mortgages in almost every state. They provide financing of up to $1 million with a down payment of 5%; for loans up to $1.5 million, 10% is required.
However, Bank of America follows stricter underwriting practices and may have limited designations available.
2. Fifth Third
Known for its doctor home loan program, it offers construction and 100% financing for up to $750,000.
They also offer 85% financing for loans up to $1.5 million for medical professionals with at least one year of experience.
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3. First National Bank
A viable option, First National Bank offers a physician mortgage that applies to various designations.
They provide 100% financing for loans up to $1 million, and their mortgage program covers primary residences and vacation homes.
4. Others
Other notable financial institutions that offer physician mortgages include:
- BMO Harris Bank: They give up to 1.5MM loan amounts for residents & fellows, and practicing physicians and are available in 27 states.
- First Horizon: 2.5MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 11 states.
- First National: Offers physicians up to 1.5MM in loans and is available in 11 states.
- Frandsen Bank & Trust: 2MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 2 states.
- Fulton Mortgage Company: 1.25MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 4 states.
- Huntington Bank: 1.25MM loan amount for residents & fellows and 2MM for practicing physicians. A minimum credit score of 700. Available in 42 states.
- Level One Bank: 2MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 1 state.
- Mercantile Bank: 100% financing options for residents & fellows, and practicing physicians. Minimum credit score not specified. Available in 4 states.
- Regions: 1MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 14 states.
- S&T Bank: 5MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 10 states.
- TD Bank: 1.5MM loan amount for residents & fellows, and practicing physicians. Minimum credit score not specified. Available in 16 states.
- Truist: 1.5MM loan amount for residents & fellows, and practicing physicians. A minimum credit score of 700. Available in 11 states.
FAQ
Is Citizens Banks Doctor Loan a Good Choice for Doctors?
If you are a medical student currently in residency or a practicing medical professional with less than 10 years of experience since your residency, and you have a lower credit score but have saved up for a down payment, the Citizens Bank Mortgage Program might be a suitable option for your home purchase.
This program can be highly advantageous for individuals seeking to buy a primary residence, specifically a condo or townhome, especially if they face challenges getting approved for a traditional home mortgage through other avenues.
Conclusion
Citizens Bank physician mortgages are an excellent choice if you want a mortgage lender that gets doctors.
With competitive rates and flexible terms tailored to physicians, the Citizens Bank Physician Mortgage could be the perfect solution for your home financing needs.
They understand the demands of your job and the need to keep your financial options open.
From start to finish, you work with a dedicated mortgage specialist and underwriter who understand physician schedules and income situations.
However, you can always get physician loans from other financial institutions if you don’t qualify for Citizens Bank’s mortgage.
