Northpointe Bank Physician Loan Review: Medical and Dental Professionals Qualify

Medical and dental professionals face unique challenges when purchasing a home, such as spending years in low-paying residencies and carrying huge six-figure student loan balances. Therefore, some banks offer a physician mortgage loan to help overcome conventional home buying barriers like saving up for a large down payment.

Northpointe Bank’s doctor loan program provides up to 100% financing with no PMI to eligible borrowers. This nationwide program (excluding California and New York) is more accessible than some of its competitors due to its large range of eligible medical and dental degrees. Read on to learn about the Northpointe Bank physician loan.

Minimum down payment	0% to 10.01%
Residents allowed	Yes
Maximum loan amount	$1 million
Degrees that qualify	DC, DMD, DDS, MD, OD, DO, PharmD, DP, DCH, DVM, DPM
Eligible states	AL, AK, AZ, AR, 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, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

Northpointe Bank physician loan: The basics

Founded in 1999, Northpointe Bank is relatively young in the banking world. But it's funded more than $38 billion in home loans since 2019.

As part of its suite of home lending products, Northpointe’s physician mortgage provides a low down payment solution for practicing physicians and residents. This special home financing comes with more lenient underwriting guidelines that can make qualifying for a mortgage easier, as well as other exclusive perks.

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Northpointe Bank physician mortgage program: Pros and cons

Buying a home is a huge financial decision that requires careful forethought beyond shopping for your dream home. There are many mortgage routes to consider, from choosing a conventional loan to taking advantage of other low down payment options — like using a VA loan or FHA loan.

If you qualify for a physician mortgage program, it’s worth exploring your options with various lenders. Here are some of the major benefits and potential negatives to using a Northpointe Bank physician loan.

Pros of Northpointe physician mortgage loans

Available to a wide range of dental and medical professionals

Unlike many doctor mortgage loan programs that are exclusive to medical doctors and dentists only, many healthcare professionals qualify for the Northpointe Bank physician loan. Eligible degrees include:

• Doctor of Chiropractic (DC)
• Doctor of Dental Medicine (DMD)
• Doctor of Dental Surgery (DDS)
• Doctor of Ophthalmology (MD)
• Doctor of Optometry (OD)
• Doctor of Osteopathy (DO)
• Doctor of Pharmacy (PharmD)
• Doctor of Podiatric Medicine (DP)
• Doctor of Surgery (DCH)
• Doctor of Veterinary Medicine (DVM)
• Doctors of Psychiatric Medicine (DPM)
• Medical Doctors (MD)

Additionally, medical fellows and residents are included in this program.

Ability to close up to 90 days before employment start date

New physicians or those who are changing jobs can qualify for the Northpointe Bank physician loan using future income.

You’ll need to provide a signed employment contract with a start date no later than 90 days after your loan closing date.

Primary residences and second homes are eligible

Many physician mortgage programs are strictly for purchasing or refinancing a primary residence. But Northpointe’s program is also available for second homes.

Note that additional conditions and requirements might apply when using this program for a secondary property.

Special student loan debt treatment

Each physician mortgage program will treat student loan debt differently when calculating your debt-to-income ratio (DTI). In Northpointe’s case, you can have your dental or medical school debt completely excluded from your DTI if you can prove that your student loans will be deferred for at least 12 months following closing.

Cons of the Northpointe physician mortgage program

Limited to adjustable-rate mortgages

While Northpointe Bank has a variety of loan terms available, its doctor loan is limited to adjustable-rate mortgage (ARM) options. So, if you prefer a traditional 30-year or 15-year fixed rate, then you’ll want to explore other physician mortgage options.

However, remember that ARM products generally come with an initial fixed interest rate for a set period. Then, they transition to a variable rate that can fluctuate periodically. An ARM can make sense for some borrowers depending on your homeownership plans.

Excludes California and New York borrowers

Although Northpointe Bank serves customers nationwide, its doctor loan program doesn’t include borrowers in California and New York at this time. However, if your new home will be in Washington D.C. or any of the remaining states, you should be good to go.

How to apply for a Northpointe Bank physician loan

If you’re interested in moving forward with a doctor loan with Northpointe Bank, you’ll need to be ready to provide personal and financial information during the application process. Here’s what to expect.

Step 1: Contact a loan expert at Northpointe Bank

Connecting with a loan officer at Northpointe Bank is straightforward. You can use its convenient online application or get a mortgage quote via its website. Alternatively, it has physical loan centers across the country if you prefer to meet with someone face-to-face.

Step 2: Submit documentation

Mortgage providers require access to various personal and financial details to ensure you meet eligibility requirements and will have the means to pay your mortgage each month.

A loan officer at Northpointe Bank will provide you with a list of required documentation. But generally speaking, you’ll need to provide proof of income (e.g., recent paystubs or an acceptable employment contract), previous tax returns and bank statements.

Note that self-employed physicians might have to jump through additional hoops to qualify. In many cases, you’ll need at least two years of self-employed income. However, there are 1099-friendly mortgage lenders that might accept fewer years or be willing to work with newly self-employed physicians.

Step 3: Sign for the loan

Your lender will guide you through each step of the application process. If approved, be sure to read all loan disclosures and ask questions about loan repayment terms, closing costs and any conditions that might be unclear.

Once you fully understand your loan agreement, you can sign the dotted line and get to the fun part — closing and moving into your new home.

Should you apply for a physician mortgage with Northpointe Bank?

Northpointe Bank offers a solid option for borrowers looking for a low down payment mortgage. Qualifying borrowers can access up to $1 million in home financing with as little as 0% to 10% down and no PMI.

Note that you’ll need a minimum credit score of 700, and your DTI can be as high as 43%, which might or might not include your student debt, depending on your situation. But this program is more inclusive in terms of professions that qualify and eligible property types that span across the country rather than being limited by region.

However, Northpointe Bank is a minor player compared to other physician mortgage programs that earn a larger share of the market. So, it’s important to weigh your options and compare mortgage rates and terms to find what best fits your needs.

To quickly compare physician home loans in your area, fill out the form below to start receiving quotes and to learn about mortgage options specific to your situation.