Alerus Financial Physician Mortgage Loan Review

Doctors and other medical professionals are known for competitive salaries. However, getting an advanced degree can mean years of schooling and result in a high amount of student loan debt. As a doctor, you might be able to manage your student loan payments, but still wonder if you can afford homeownership.

Alerus Financial offers physician mortgages, as well as loans for other healthcare professionals. Keep reading to see if Alerus offers the right mortgage for you.

Minimum down payment	0% down payment on up to $750,000 5% down payment on up to $1 million 10% down up to $1.5 million
Residents allowed	Yes
Maximum loan amount	$1.5 million
Degrees that qualify	MD, DO, DDS, DMD, DVM and OD
Eligible states	AL, AZ, CA, CO, CT, FL, ID, IN, IA, KS, KY, MD, MA, MI, MN, MO, MT, NE, NV, NM, NC, ND, OH, OR, PA, SC, SD, TN, TX, UT, WA, WI, WY, DC

Alerus physician mortgage loan details

Founded in 1879 as the Bank of Grand Forks, Alerus Financial was one of the first chartered banks in the Dakotas. Eventually, after acquiring other banks and expanding beyond Grand Forks and even purchasing a retirement services company in Minneapolis, Minnesota, Alerus became a national bank.

In addition to physicians, osteopathic specialists and veterinarians, Alerus also offers loans to dentists and optometrists. Additionally, professors and managing physicians with a medical diploma or current license can access special underwriting for these home loans.

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Alerus Financial physician mortgage loan: Pros and cons

Depending on your situation, you might qualify for various mortgage products through Alerus. Compare different options to decide what works for you.

Alerus allows borrowers to refinance, including offer cash-out refinancing.

Alerus physician mortgage loan pros

With Alerus Financial, you can access physician mortgage loan products that include some advantages, including competitive mortgage interest rates.

Variety of qualified degrees and professions

Rather than limiting the loan options to those with specific degrees and physicians and dentists, Alerus also allows optometrists and those with osteopathy degrees access to these doctor loan programs.

Others, like chiropractors, also have eligibility for special home loans. Even clinical professors, medical researchers and managing physicians can qualify, as long as they have a current medical license or diploma.

Different types of loans

Fixed-rate mortgages and adjustable-rate mortgages are available. Additionally, it’s possible to get new construction loans through this program. It’s also possible to get a refinance, including cash-out refinancing.

Use our physician mortgage loan calculator to help you try different scenarios and figure out what works best for you.

No PMI

There’s no private mortgage insurance (PMI) with an Alerus physician loan. You can put as little as 0% down and not have to worry about paying the cost of mortgage insurance.

Easier to meet credit requirements

Some doctor loans require a minimum credit score of 700 or more. Alerus has a minimum credit score of 680 and a maximum debt-to-income ratio (DTI) of 43%, making it a little easier to qualify for a physician mortgage product.

Alerus physician mortgage loan cons

Before deciding on any loan program, you should consider the disadvantages. Here are some of the downsides to getting a doctor loan.

0% down payment option limits buying power

Some other mortgage bankers offering physician loans allow 0% on up to $1 million or more. In order to get a no-down payment loan from Alerus, you have to limit the purchase price to $750,000.

Monthly loan payments can be difficult to manage

Because the limit on loan amount is so high, you might be stuck with a high monthly payment that makes you feel house poor. Be careful about borrowing so much that your DTI is too high.

How to apply for an Alerus Financial physician mortgage loan 

Part of the home buying process is to compare mortgage lenders. Review terms and disclaimers from three to five loan providers to see what works for you. Look for those that have no private mortgage insurance, low mortgage rates and other generous terms.

If you decide that Alerus is the best choice for you, move forward with a doctor loan application.

Step 1: Contact Alerus Financial

To begin the process, contact an Alerus Financial loan officer, with the following information ready:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Property location
• Property zip code
• Degree
• Employment contract

Step 2: Gather necessary documentation

To get any mortgage loan, you need to prove that your information is accurate and your income will be enough for loan monthly payments. Your mortgage loan officer can provide you with a list of what you’ll need. Some documentation might include:

• Purchase agreement.
• Pay stubs (recent 30 days) or an employment contract, if you haven’t started.
• Recent bank statements.
• Tax returns.
• Driver’s license or other ID.
• Other documents, as requested.

Whether you‘re a first-time homebuyer or you’ve been through the process before, having these documents can help you get your loan approved faster.

Step 3: If approved, accept the loan

When the mortgage lender approves you, it‘s time to decide whether to accept the home loan terms and conditions. Read the disclaimers and understand the total closing costs. After everything‘s reviewed and signed, you can prepare to move into your new real estate.

Should you apply for a physician mortgage loan with Alerus?

Depending on your situation, a doctor loan through Alerus can be a good move. Review the impact a large mortgage will have on your finances and your ability to repay student loans. Compare Alerus Financial to other physician mortgage lenders and chose the home loan that’s best for you. You can also fill out the form below for more information.