PharmD Mortgage Loans: Low Down Payments Options for Pharmacists

Pharmacists often take on a large amount of student loans in hopes of securing a six-figure pharmacist salary. However, if you’re in the early years of your pharmacy career, your student debt and limited income history don’t have to hold you back from fulfilling your dream of buying a home.

Some banks offer mortgage loans to medical professionals, like qualifying pharmacists, for as little as 0% or 10% down to secure a home loan well-beyond the conventional loan limit. This special home financing product falls within a broader category called a “physician mortgage program”.

But not all physician mortgage lenders automatically extend eligibility to include pharmacists. Read on to learn about the top pharmacist mortgage loans and how you can benefit from using this exclusive home financing solution.

How do special pharmacist mortgage loan programs work?

A PharmD mortgage can help young pharmacists qualify for a home loan a lot sooner than with traditional mortgages. The biggest benefit of a pharmacist mortgage loan program is its low down payment options that don’t require home buyers to carry private mortgage insurance (PMI).

But that’s not the only perk. You can also benefit from:

• Flexible underwriting, which typically includes more favorable treatment of student loans when calculating your debt-to-income ratio (or DTI).
• Higher loan amounts that exceed the conventional loan limit (e.g. $726,200 for most counties) without an interest rate increase.
• The ability to close on a home 60 to 90 days before starting your residency or new pharmacist position with proof of employment (e.g. acceptable contract or offer letter).

Although qualifying for a pharmacist mortgage loan can be easier than a conventional mortgage, not all banks offer this special financing to pharmacists.

So, save your energy and time by filling out the form below or keep reading for specific pharmacist mortgage loan lenders to reach out to.

5 Top lenders offering specialty mortgage loans to pharmacists

PharmD mortgages are intended for purchasing and refinancing a primary residence. However, some lenders might allow second homes or vacation homes with additional conditions and a larger down payment.

Lenders offering pharmacist mortgage loans are listed alphabetically and contact information (if applicable) is included for your convenience. Keep in mind that each lender will have its own eligibility requirements (e.g. credit score, maximum DTI, etc.).

1. First Merchants Bank (formerly Level One Bank)

Pharmacists can use a First Merchants Bank physician loan to finance up to $1 million with 0% down. If you are needing financing for a larger amount, loan amounts are available for up to $2 million with varying down payment options and no PMI.

This program boasts fast, efficient closings, with an average closing turnaround of 18 days, when working with the contact listed below.

States available: IL, IN, MI, OH

2. Flagstar Bank

Flagstar Bank serves pharmacists in all 50 states and Washington D.C., offering a variety of adjustable-rate mortgages (ARMs) with up to 100% financing. Qualifying borrowers can take advantage of 0% down for up to $1 million with no PMI.

Note that you must be within 10 years of starting your career to be eligible.

States available: 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

3. Frandsen Bank & Trust

Minnesota and Wisconsin pharmacists might benefit from using a physician home loan with Frandsen Bank & Trust. It offers low down payment options (0% to 10%) for loan amounts up to $2 million with no PMI.

States available: MN, WI

4. Fulton Mortgage Company

Pharmacists living and working on the East Coast have several low down payment options with Fulton Mortgage Company, including 0% down for up to $1.5 million, 5% down for up to $2 million and 10% down for up to $3 million – with no PMI. Mortgage options range from 15- and 30-year fixed rates to a variety of ARMs.

Note that this program serves pharmacists that have been out of residency for up to 15 years.

States available: MD, DC, VA, DE, NJ

Contact: James Webster

5. UMB Bank

A physician mortgage with UMB Bank provides pharmacists in select states a 0% down option for up to $1 million. Additional down payment options (5% to 10%) are available for loan amounts of up to $2 million with no PMI.

Note that this physician mortgage program doesn’t offer financing for pharmacists who are still in residency and who have a household income that is less than $150,000.

States available: CO, AZ, TX, OK, KS, NE, MO

Contact: Andrew Berry

Is a pharmacist mortgage loan right for you?

PharmD mortgages can benefit pharmacists who haven’t had time to save up for a large down payment or build a solid income history. It can give you access to up to 100% financing with more lenient underwriting guidelines that won’t penalize you for being at the early stages of your career where student loan debt is almost a guarantee.

No down payment and no PMI gives you the option to use that money on other financial goals, like paying off your student loans or making smart investment choices as a pharmacist.

Alternatively, you can use your savings for renovations, to furnish your new home, or to plan for all those pesky surprises that come with homeownership, such as busted pipes and appliance replacements.

With a pharmacist mortgage loan, you have options that aren’t available to the general public ,thanks to your hard-earned PharmD degree. But as with any financial decision, it’s best to shop around during the home buying process and compare mortgage loan options and lenders to find the best fit for your situation.

Fill out the form below to start receiving pharmacist mortgage loan quotes for your next home purchase or refinance.