7 Best Physician Mortgage Loan in Michigan for Doctors and Dentists

If you’re planning to settle down in the Great Lakes State, you’ll have ample opportunity for fishing and other outdoor recreation. But you’ll also be looking at a more affordable housing market compared to many other states.

2024 data from the Michigan REALTORS shows the average home sales price ranged from slightly over $100,000 in Detroit to more than $460,000 in Ann Arbor.

However, depending on where you choose to live, you could pay a lot more for your dream home. For example, if you want Michigan lakefront property, be prepared for seven-figure sales prices.

If you’re a new physician, buying a home might seem out of grasp at this point in your career. You likely have a large student loan balance and other competing financial priorities.

But new and established medical professionals and dentists can benefit from exclusive Michigan physician mortgage programs in more ways than one.

How you can benefit from a Michigan physician mortgage loan

A physician mortgage, sometimes called a doctor home loan, is designed specifically for professions with high salaries and a lot of student debt. Most programs are geared toward doctors and dentists. But some lenders expand their programs to other high-earning professions.

Top perks of a Michigan physician mortgage include:

• No down payment. Many physician mortgage programs provide up to 100% financing, meaning you won’t need to save up for a large down payment.
• No private mortgage insurance (PMI) requirement. With a conventional mortgage, you’ll likely be required to carry PMI if you put down less than 20% of the home’s purchase price. You can save thousands of dollars each year by avoiding PMI with a physician home loan.
• Favorable student loan debt treatment. Physician mortgage programs will typically use your income-driven (IDR) monthly payment or a percentage of your loan balance to calculate your debt-to-income ratio, or DTI. In some cases, borrowers with deferred student loan payments might have them excluded altogether.
• Relaxed income requirements. Most physician mortgage lenders allow fellows, residents and new physicians to submit an employment contract as proof of future income. This allows you to buy a home before officially starting your new position. In most cases, the contract will need a start date within 60 to 90 days of closing. But this requirement varies by lender.

A doctor home loan also allows affordable access to jumbo loans if your dream home exceeds the conventional conforming loan limit. For 2024, this is generally $766,550. However, some high-cost counties have higher limits.

Michigan physician mortgage lenders offer no or low down payment options for loans ranging from half a million up to $2 million or more.

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Michigan Doctor Mortgage Lenders	0% Down Loan Limit	Who Can Qualify	Unique Features
BMO	Min 5% down	MD, DO, DDS, DMD	Lends in majority of the country
Fifth Third Bank	$1 million	MD, DO, DDS, DMD, DVM, OD, DPM	Lends to various visa holders
First Merchants Bank	$1 million	MD, DO, DDS, DMD, DVM, PharmD	Student loan debt deferment allowed
Flagstar Bank	$1 million	Most graduate degrees	720 credit score required for 0 down
Huntington Bank	$1 million	MD, DO, DDS, DMD, DVM	Minimum 700 credit score
Northwest Bank	$950,000	MD, DO, DDS, DMD, DPM	Northwest US focus
US Bank	Min 5% down	MD, DO	Dentists not eligible

7 Lenders offering doctor loan options in Michigan

If you’re planning to buy a home in Michigan, check out what these top physician mortgage lenders have to offer for doctors and dentists. Most programs are limited to purchasing or refinancing a primary residence.

We’ve included contact information for loan officers with each of our partner lenders to help expedite your search.

1. BMO Bank, N.A.

The BMO Bank, N.A. physician mortgage program is open to residents, fellows and existing or newly licensed medical doctors and dentists with an MD, DDS, DMD or DO designation.

Financing options include:

• 5% down for up to $1.5 million
• 10% down for up to $2 million

However, physicians who have been in practice for more than 10 years are limited to 90% financing.

If you’re starting a new position, you can qualify with an employment contract with a start date within 90 days of closing.

2. Fifth Third Bank

Fifth Third Bank’s physician mortgage loan is available to residents, fellows and physicians with an MD, DO, DPM, DDS, DMD, DVM or OD designation.

Financing options include:

• 0% down for up to $1 million
• 5% down for up to $1.5 million
• 10% down for up to $2 million (established doctors and dentists only)

Established physicians are those who have been employed for at least 12 months or have been self-employed for at least one year.

Note that student loans that’ll be in deferment or forbearance for at least 12 months after closing will be excluded from DTI calculations.

Contact: Sandy Salas

3. First Merchants Bank

The physician mortgage program with First Merchants Bank, formerly known as Level One Bank, is a typical doctor mortgage program. It is available to doctors and dentists with an MD, DO, DDS, DVM, DMD or PharmD designation.

Financing options include:

• 0% down for up to $1,000,000
• 5% down for up to $1,250,000
• Financing up to $2,000,000 is available

Student loan deferment is allowed for resident physicians with proof of employment contract within 90 days of closing.

If you are another type of medical professional or first responder, First Merchants Bank has you covered too. Their Community One Professional Loan program, which includes police, fire, teachers, RNs, RTs and any hospital employee, offers a loan amount of up to $350,000 with 3% down and no required PMI (private mortgage insurance) on a new home purchase.

4. Flagstar Bank

The physician mortgage program at Flagstar services medical professionals and select other qualifying professions in all 50 states.

Qualified medical professionals must hold an MD, DDS, DMD, OD, PharmD, DPM, DO, PA, RN, NP, CPA, or DVM. Other professionals that are encouraged to apply include clinical nurse specialists, attorneys and ATP pilots.

Financing options include:

• 0% down for up to $1 million
• 5% down for up to $1.5 million

It's important to note that only adjusted-rate mortgages (ARM) are available; so, your monthly mortgage amount could increase or decrease over time.

5. Huntington National Bank

The physician mortgage program with Huntington Bank is available to medical doctors and dentists with an MD, DO, DDS, DVM or DMD designation.

Financing options include:

• 0% down for up to $1 million
• 5% down for up to $1.25 million
• 10% down for up to $2 million

Recent medical graduates can take advantage of no-money-down financing with proof of an employment contract and a letter from their employer.

6. Northwest Bank

Michigan physicians and residents with an MD, DO, DDS, DMD or DPM designation can apply for the Northwest Bank’s Physician Loan Program.

Fixed rate and adjustable rate mortgages are available, as well as rate and term refinance options. With down payment requirements as low as 0% and no required private mortgage insurance (PMI), this program is worth looking into.

Financing options include:

• 0% down for up to $950,000
• 5% down for up to $1,250,000
• 10% down for up to $1,500,000

The maximum loan amount for residents is $647,200 with no money down.

A minimum credit score of 720 is required. You also need cash reserves equivalent to two months of PITIA (principal, interest, tax, insurance and association dues), plus one month for every 30 days from closing until your income begins.

Note that deferred student loans are excluded from your qualifying DTI ratio.

7. U.S. Bank

U.S. Bank offers a doctor mortgage loan for qualified physicians, residents and fellows with an MD or DO designation. Lawyers are also eligible under this program.

Financing options include:

• 5% down for up to $1 million
• 10% down for up to $1.5 million
• 15% down for up to $2 million

A minimum credit score of 710 is required. Additionally, you’ll need three, six or 12 months’ worth of cash reserves, depending on your loan amount.

Note your IDR monthly payment will be used in your DTI calculation. However, if your loans are in deferment, 2% of your loan balance will be used in place of your payment amount.

Is a Michigan doctor home loan right for you?

A Michigan physician mortgage offers competitive interest rates with some serious perks, including $0 down payment options and no PMI requirement.

If purchasing a home is on your list of financial and personal goals, then a physician mortgage can fast-track your homebuying timeline.

You won’t need to spend years saving for a large down payment requirement. Instead, your savings can be used to furnish your new home, plan for renovations or tucked away for all of the unexpected costs of homeownership.

Keep in mind that you’ll likely qualify for a much larger loan than you would with a conventional mortgage due to more flexible underwriting guidelines. You could easily get yourself into financial trouble if your house-hunting process is based on your maximum loan amount and not on what you can realistically afford.

Interested in seeing what other physician mortgage programs are out there? Use our doctor mortgage loan finder to locate programs in your area.