Is Washington Trust’s Physician Mortgage Loan Right for You? An In-Depth Review

Many doctors, veterinarians and dentists have a high level of student loan debt when they finish their training. As a result, borrowers can find it difficult to qualify for home loans, including saving for a down payment.

Doctor loans can help some medical professionals buy real estate. Washington Trust Mortgage Company makes it possible for certain doctors to access homeownership through 100% financing, no private mortgage insurance (PMI) and a work start date up to 60 days out.

Washington Trust physician mortgage loan details 

Washington Trust Mortgage Company is owned by Washington Trust Bancorp, Inc., which was founded in 1800 and claims to be the oldest community bank in the country. The bank is headquartered in Rhode Island and offers access to different financial services and products, including checking accounts, savings accounts, debit cards, credit cards and small business loans in addition to providing mortgages. The bank is a member-FDIC.

Washington Trust Mortgage Company offers physician mortgage loans to residents and physicians who have recently begun practicing. Dentists, oral surgeons and veterinarians can also use the physical loan program. It’s part of NMLS, which meets applicable state licensing program requirements.

Minimum down payment	0% down for up to $500,000
Residents or fellows allowed	Yes
Maximum loan amount	$1 million
Degrees that qualify	MD, DO, DDS, DMD, DVM, DPM
Eligible states	Not Disclosed

Washington Trust physician mortgage loan: Pros and cons 

It’s possible to use a doctor loan from Washington Trust for condominiums, townhouses, one and two-unit primary residences, and planned unit developments (PUDs). Note that second homes and investment homes aren’t included in this program. However, before you move forward, it’s important to understand the pros and cons of a program.

Washington Trust physician mortgage loan pros

Special financing options for qualifying medical residents, doctors and other professionals can make the home-buying process a little easier.

Up to 100% financing

Washington Trust Mortgage Company offers a 0% down payment option on a home purchase price of up to $500,000. After that, getting a home is still possible by putting less than 20% down. Washington Trust allows qualified medical doctors to borrow up to $1 million. Various fixed-rate mortgage and adjustable-rate mortgage options are available.

Deferred student loans not included in DTI

If you have student loan payments deferred for at least 12 months, they won’t be included in debt-to-income (DTI) ratio calculations. As a result, you might be more likely to qualify for a higher loan amount based on your potential income. Washington Trust will accept an employment letter with a start date of up to 60 days out for income.

No PMI

Many physician loans, including Washington Trust Mortgage Company, don’t charge private mortgage insurance (PMI), even if your down payment is less than 20%.

Use a physician mortgage loan calculator to see how PMI and other factors affect your repayment and determine what you can afford.

Washington Trust physician mortgage loan cons

Before signing the paperwork, it’s also important to consider the liabilities and drawbacks of getting a physician home loan through Washington Trust.  

Small down payments can lead to higher monthly payments

Doctor mortgage programs offer the ability to get a larger house than you might otherwise be able to get with a conventional loan. You might be able to get more house for your money with a physician mortgage loan. 

This can be attractive, but a smaller down payment can mean higher monthly payments and higher interest charges. Some doctors might feel “house poor” as a result.

Lower loan amount for medical residents

While medical doctors can borrow up to $1 million, residents are capped at $417,000 for a loan amount. Additionally, Washington Trust isn’t forthcoming about whether refinancing is included in its doctor loan program.

Other home loan lenders might offer doctor and medical professional loan programs, including more national ones.

How to apply for a Washington Trust physician mortgage loan 

Before you decide, compare three to five lenders, looking at their closing costs and disclosures.

Don’t forget to consider whether a doctor mortgage loan is the right move or whether you should consider a traditional home loan or use a government-backed program, such as FHA, VA or USDA loans.

Step 1: Contact Washington Trust

Contact Washington Trust Mortgage Company to complete a loan application or complete the information form below. A mortgage loan officer can help you figure out what you need.

Be ready with the following information before you reach out:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Purchase price
• Property location 
• Property zip code 
• Degree
• Employment contract
• Proof of medical license

Step 2: Gather the necessary documentation 

Every lender has different document requirements. Your Washington Trust mortgage loan officer can help you gather the right items. Some common documents you might need include:

• Purchase agreement
• Employment contract
• Pay stubs
• Recent bank statements
• Tax returns
• Driver’s license or other ID
• Other documents, as requested

The more information you have, the faster you’re likely to close.

Step 3: If approved, accept the loan 

Once approved by Washington Trust, accept the final paperwork. Make sure all of the information matches what you were originally told, and ensure the loan meets your expectations.

Should you apply for a physician mortgage loan with Washington Trust Mortgage Company? 

Before moving forward with your home-buying journey, compare Washington Trust to other physician mortgage lenders in your area and across the country. Compare the doctor loan program to conventional mortgage options and government-backed loans, like FHA, USDA and VA loans. Depending on your situation, a different program might make more sense than a physician mortgage program. 

Fill out the form below for more information about getting a loan from Washington Trust or other doctor loan programs.