PhD Mortgage: Home Loans for Non-Medical Doctorate Degrees

Key takeaways:

• A PhD mortgage is a low down payment solution for non-medical doctorate degree holders looking to purchase or refinance a home.
• Most physician mortgage programs are designed for medical doctors and dentists, but some lenders provide PhDs with special home financing options.
• PhD mortgages have no private mortgage insurance (PMI) requirement and come with high loan limits.

Although many banks cater to medical doctors and dentists via their physician mortgage programs, other types of doctors are often overlooked. If your doctorate is in a non-medical field, you might still qualify for special home financing opportunities thanks to your hard-earned degree.

With a PhD mortgage, you can buy a home with as little as 3% down and no PMI. You can also access loan amounts well beyond the conventional loan limit without experiencing an interest rate spike. Read on to learn how you can benefit from a PhD mortgage and which lenders offer this little-known home buying perk.

What is a PhD mortgage: Benefits and limitations

Professional mortgage programs allow homeowners to secure a mortgage with little to no money down. These special home financing programs usually focus on medical doctors and dentists, but many mortgage lenders extend eligibility requirements to include other high-income professions and advanced degrees.

Borrowers with a doctorate-level degree in a non-medical field might be eligible for a PhD mortgage, depending on the lender.

If you qualify for a PhD mortgage, you can take advantage of other program benefits, such as:

• No PMI, saving you thousands of dollars each year.
• High loan limits, generally reaching $1 million or more.
• Flexible underwriting guidelines, making it easier to qualify despite carrying a large student debt balance.
• Ability to close on a new home with an acceptable employment contract that serves as proof of future income.

Unfortunately, PhD mortgage options are limited. However, this type of loan program is growing in popularity as banks see the potential to create a long-term banking relationship by using their professional mortgage program as an introductory product.

Top lenders for a PhD mortgage

Non-medical PhD holders aren’t generally included in most physician mortgage programs. But, depending on the lender, your degree can open the door to more flexible mortgage options

We’ve put together a list of PhD-friendly lenders and included their loan officer’s email and phone number (when applicable).

Note that professional mortgage programs are specifically for purchasing or refinancing a primary residence. Investment properties are excluded.

1. S&T Bank

The S&T Bank professional mortgage program is available to PhD holders in a non-medical field, as well as many other medical, dental and veterinary professions.

Eligible borrowers across the country can take advantage of this low down payment solution that provides up to 95% home financing and no PMI. Unlike other professional and physician home loan programs, this program doesn’t have a set maximum loan amount.

This professional mortgage program has a variety of mortgage options to choose from, including 30-, 20-, 15- and 10-year fixed rates. Additionally, S&T Bank has 5-year and 7-year adjustable-rate mortgage (ARM) options.

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, OH, OK, OR, PA, RI, SC, SD, TN, UT, VT, VA, WA, WV, WI, WY

2. Northpointe Bank

Northpointe Bank offers a professional home loan to PhD holders in select states who have an executed employment contract with a start date within 90 days of loan closing.

Home financing is available with as little as 3% down and no PMI. The maximum loan amount is $1.3 million.

Note that a minimum credit score of 661 is needed, and a maximum debt-to-income ratio (DTI) of 43% is accepted.

States available: AL, AZ, CA, CO, DE, FL, GA, HI, ID, IL, IN, KY, MA, MI, NC, OH, OR, RI, SC, TN, TX, UT, VA, WA

Should you use a PhD mortgage for your next purchase or refinance?

PhD mortgages aren’t as accessible as other popular physician mortgage programs. But if you’re eligible for one of the programs listed above, it can be a huge homeownership benefit.

For one, you won’t have to save up for a large down payment or budget for annual or monthly payments for PMI. Additionally, you can access competitive interest rates on a jumbo loan in order to find a home in your desired market.

However, a PhD mortgage isn’t always the right fit. Depending on your situation, you might benefit more from a conventional loan, VA Loan, USDA Loan or FHA Loan. Each of these mortgage options comes with its own interest rate range, down payment solution and eligibility requirements.

Alternatively, if your spouse is in the medical field or another high-income profession (e.g., attorney, pilot, etc.), then your household might qualify for other professional mortgage programs not listed above. In this case, we have a ton of free resources to explore.

If a PhD mortgage sounds like an option for your family, fill out the form below to receive quotes for your next purchase or refinance.