Citizens Physician Loan: Financing for Doctors and Dentists

Homeownership is a dream many people have, and physicians and dentists are no different. What sets them apart, though, is having a higher-than-average income, typically with high student loan debt.

Medical professionals looking for a home loan might be concerned about how to make the numbers work to qualify for a mortgage loan. However, many banks offer physician loans to qualified candidates, which require a low or no down payment and no mortgage insurance requirement.

Such flexible terms allow doctors to buy a new home sooner rather than later. There are various physician mortgage loans on the market. One of which is a Citizens physician loan. Citizens offers various financial products, including student loan refinancing and a doctor loan mortgage.

Citizens physician loan details
Minimum down payment	5% down payment up to $850,000 10% down payment up to $1,000,000 15% down payment up to $1,500,000
Residents allowed	Yes
Maximum loan amount	$1.5 million
How they treat student loans	Student loans that are deferred for more than a year are excluded from debt-to-income (DTI) ratio. Can also use IBR and reduced student loan payments to qualify.
Degrees that qualify	MD, DO, DDS and DMD
Eligible states	CA, CT, DC, DE, IL, IN, KS, KY, LA, MA, MD, ME, MI ,MN, MO, MS, NC, NH, NJ, NY, OH, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WV

Citizens physician mortgage details

If you’re considering buying a home soon, here’s what you need to know about the Citizens Doctor Loan.

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Citizens physician mortgage program: pros and cons

If you’re ready to buy a home, a doctor loan program can help you access the funding you need to get started. However, a mortgage is a big financial move that should be evaluated before taking the next step. Here are the major pros and cons of a Citizens physician loan.

Citizens physician mortgage loan: pros

Mortgage can be used for various properties

The Citizens physician loan can be used for a primary residence, construction, as well as a cash-out refinance. In other words, the loan can be used to buy a new primary home or to build a new property. You might also be able to get a cash-out refinance.

No mortgage insurance requirement

Saving up for a down payment can be a long and drawn-out process. Homebuyers generally want to save a 20% down payment to avoid paying private mortgage insurance (PMI). However, with the Citizens physician loan, there’s no mortgage insurance requirement, so you don’t have to worry about that added expense if you have less saved up.

Multiple mortgage options

Your interest rates and repayment terms can impact how much you pay for your mortgage. With the Citizens physician loan, you can opt for fixed interest rates or get an adjustable-rate mortgage (ARM).

For example, you can choose a fixed-rate mortgage with a 10-, 15-, 20- or 30-year repayment term. ARM options include 3/1, 5/1, 7/1 and 10/1 ARMs. Having choices and flexibility can help you decide what’s best for your finances and can give you a better idea of the total cost of the loan.

Citizens physician mortgage loan: cons

Limited eligibility by profession

Many doctor mortgage programs, given the name, are designed for doctors and dentists. While these loan programs are catered to these types of healthcare providers, some lenders have expanded eligibility to include other types of doctors, including optometrists and veterinarians.

The Citizens physician loan is exclusively for medical doctors and dentists, so the eligibility is much smaller compared to some other lenders and doctor loan programs. Also, you must be within 10 years of residency to qualify.

Doesn’t offer 0% down option

One of the major perks of physician mortgage loan programs is that some lenders allow borrowers to put zero down to obtain financing. That can be a draw for physicians who want to get started with homeownership with little capital to get started. Citizens doesn’t offer this as an option and has a minimum of 5% down payment requirement to get financing.

There may be restrictions by state

Citizens is available in various states but may have different programs and restrictions on a state-by-state basis. So you want to check to see if you qualify based on where you live and see if there are any other eligibility requirements you must meet.

How to apply for a Citizens physician home loan

Interested in getting started with a Citizens physician loan? Here are the steps to get started.

Step 1: Contact a Citizens Doctor Loan Specialist

Citizens offers doctors and dentists unique financial products such as its doctor loan mortgage, student loan refinancing and wealth management services. Because of its various products aimed at health professionals, the bank has a team of loan specialists who are equipped to understand your unique banking needs and offer solutions.

Step 2: Prepare documentation

Once you speak with a banking specialist, you’ll have a better idea about the documentation you need for a mortgage. You’ll likely need to provide proof of income, such as recent paystubs, last year’s tax return or an employment contract from your soon-to-be employer.

For example, Citizens allows medical residents with a new license to obtain a mortgage within 60 days of starting new employment. Self-employed doctors must have two years of experience to qualify.

Step 3: Apply for a mortgage

After doing your research and gathering documentation, it’s time to apply for a mortgage. Evaluate the terms and conditions, repayment terms, interest rates, and closing costs. Consider the pros and cons of the lender and ask any questions you may have. Once you apply and get approved, you’re even closer to getting a home of your own.

Should you apply for a physician mortgage with Citizens?

If you’re a doctor or dentist, you can research many physician mortgage loan lenders to find the best option. Citizens might not offer zero percent down, but it offers many different financial products and could offer support tailored support through its doctor loan banking specialists. If you want a lender who’s willing to be in your corner by helping you with various parts of your finances, Citizens could be a good option.

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