BankMD Physician Mortgage Loan Review: Low Down Payment Solution

The BankMD physician mortgage loan provides a low down payment solution for medical doctors and dentists nationwide. This program comes with more generous underwriting, making it easier to qualify, and offers loan amounts up to $2 million or more, giving you more flexibility to choose your dream home.

Keep reading to learn about the BankMD physician mortgage loan.

Minimum down payment	0% down for up to $850,000
Residents or fellows allowed	Yes
Maximum loan amount	$2 million or more
Degrees that qualify	MD, DO, DDS, DVM
Eligible states	AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

BankMD physician home loan details

BankMD is a specialized physician-focused bank that provides both personal and business financial services to doctors and dentists across the country.

Its physician mortgage program allows medical doctors (MD, DO), residents, dentists (DDS, DMD) and veterinarians (DVM) the option to buy a new home with little to no money down and no PMI.

Additionally, the BankMD physician mortgage loan program allows sellers to contribute up to 6% of the home’s value for the buyer’s prepaid and closing costs. There are also no limits on gift funds that can be used.

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BankMD physician mortgage loan: Pros and cons

A doctor mortgage can provide many home buying benefits that other professions can’t necessarily tap into. But each mortgage company sets its own eligibility requirements (e.g., minimum credit score, qualifying degrees, etc.).

Therefore, it’s important to weigh the pros and cons of the BankMD physician mortgage loan program alongside other top physician mortgage loans.

BankMD physician mortgage loan pros

Up to 100% financing available

BankMD offers the following down payment options for qualifying borrowers:

• 0% down for up to $850,000.
• 5% down for up to $1 million.
• 10% down for up to $2 million.

For home buyers interested in loan amounts above $2 million, a 15% down payment is required.

Student debt is excluded from credit approval process

Medical and dental professionals often carry huge six-figure student debt balances that can come into play during the underwriting process. With the BankMD physician mortgage loan, your student loan payments will be excluded entirely from your debt-to-income ratio (DTI).

Compared to a conventional mortgage, this exclusion of student debt can make it easier to qualify for a mortgage and increase the loan amount you’re eligible for.

Use future income to buy a home

Eligible borrowers can close on a new home up to 90 days prior to the start of employment. This can be particularly beneficial to recent medical school graduates and new physicians looking to settle in before diving into their new roles. All you need is a signed employment agreement with a start date within the acceptable range.

1099-friendly for self-employed physicians

Self-employed and locum doctors might have better chances of qualifying for a BankMD physician mortgage loan over other similar programs. It doesn’t require a minimum number of years of self-employment or 1099 income.

Available nationwide to eligible borrowers

Many physician mortgage programs are limited to specific states or regions. But BankMD serves physicians in all 50 states.

BankMD physician mortgage loan cons

Limited degree qualifications

Although other physician mortgage programs cater to many types of healthcare professionals, the BankMD physician mortgage loan is limited to borrowers with a degree designation of MD, DO, DDS, DMD or DVM.

Other medical professionals, such as physician assistants and nurse anesthetists, might qualify for more inclusive physician mortgage programs.

Relaxed underwriting might result in larger mortgage payments

Because your student loan debt will be excluded from your DTI, you’ll likely qualify for a larger loan amount than you would with a conventional loan. If you aren’t careful, this could cause mortgage creep that puts you outside your realistic housing budget.

How to apply for a BankMD physician mortgage loan

If the BankMD physician mortgage program is at the top of your list, you’ll want to take some steps to prepare for the mortgage application process.

Step 1: Contact a loan officer with BankMD

A BankMD loan officer can answer specific questions related to eligibility requirements and your unique financial situation. You can do this by submitting your information via its online chat feature or calling (855) 422-6563.

Step 2: Fill out an online prequalification application

You can find out how much of a loan you’ll be approved for by completing a simple form online. This will generate a prequalification letter or email stating how much you can borrow.

Note that prequalification isn’t a commitment on your part. But it can help set your upper limit when house hunting.

Step 3: Find a home and submit a home purchase agreement

BankMD will contact you with follow-up instructions while you search for a new home. Once an offer is accepted, you’ll need to send over your signed purchase agreement.

You’ll then review and sign your loan estimate and other disclosures to keep the process rolling.

Step 4: Submit important documents

BankMD will need additional documentation before giving full loan approval. For example, if you’ve been accepted into a residency program, you’ll need to submit an acceptable employment agreement.

Other requested financial documentation might include your bank statements for the last two months, as well as the source of your down payment and any gifted funds.

Step 5: Gain final loan approval and complete the closing process

Once everything is submitted, BankMD will execute its final underwriting process by verifying your credit reports, financial status, contract, property appraisal and more before setting a closing date.

Be sure to review all closing costs and understand all aspects of your loan (e.g. interest rate, loan term, etc.). When closing is complete, you’ll receive the title to your new home.

Should you apply for a physician mortgage with BankMD?

The BankMD physician mortgage loan offers many perks, including a $0 down payment option, no PMI and flexible underwriting. It also offers competitive interest rates for a variety of loan terms, such as a 30-year fixed term or adjustable-rate mortgage (ARM) options (e.g., 5/1, 7/1, 10/1, 15/1).

Additionally, it keeps all physician mortgage loans in-house, so you’ll work with them throughout the life of your loan.

But depending on your household, you might be eligible for other low down payment financing opportunities. For example, if you or your spouse served in the military, the VA Loan might be more beneficial if you have a disability rating. However, it’s worth noting that BankMD waives all closing costs for veterans.

So, it’s best to explore all mortgage options and compare multiple physician mortgage lenders to find the right fit.

If you want to take some of the legwork out of comparison shopping, fill out the form below to receive quotes and learn more about doctor loan programs you might benefit from.