Dentist Mortgage Loans
Dentist Mortgage Loans
Dentist Mortgage Loans
Physician Mortgage Loans
Physician Mortgage Loans
A dentist mortgage loan is a niche product which banks offer exclusively to dentists and other medical professionals. These loans are popular among dentists for several reasons, including:
- small down payments with no mortgage insurance (PMI)
- competitive rates even with higher loan to value (LTV)
- flexible underwriting despite higher debt to income (DTI) ratios and lower FICO scores
Why do banks offer such great financing options to dentists?
Banks and mortgage lenders offer these dental mortgage programs with fewer restrictions due to the robust income potential and the low default rate among dentists and other medical professionals.
Who benefits from these offers?
All types of dentists can apply for this niche loan product. You are committed to your profession-providing outstanding oral care to your patients-and should be rewarded with exclusive financing. The list of dentists utilizing this financing includes:
- DDS
- DMD
- Orthodontist
- Periodontist
- Endodontist
- General Dentist
- Pedodontist/Pediatric Dentist
- Oral Pathologist/Oral Surgeon
- Prosthodontist
On this website you will find information on all the different products available to dentists that banks and lenders offer, including:
- purchasing and refinancing home loans
- adjustable and fixed rate mortgages
- popular mortgage products
and a physician mortgage calculator. Complete the contact form on this page or choose your state to be connected with a loan officer to discuss your dentist mortgage loan.
Dentist Home Loans
Dentist Home Loans
Low Down Payments
With as little as 0-10% down, you can borrow up to $1,000,000 to purchase your new home. Down payments vary, with tier levels based on the loan amount. There are no hidden fees or pre-payment penalties, so you have a clear understanding of the terms as well as the flexibility for early pay-off.
No Mortgage Insurance (PMI)
No pricey private mortgage insurance (PMI), even with only 0-10% down, 90% loan to value (LTV). Unlike traditional borrowers needing PMI, medical professionals like you are safer borrowers, with increased income potential and historically responsible clients.
Competitive Rates
Get the most competitive interest rates in the market—even with 10% down payment or less and higher loan to value (LTV). Dentist home loans are more personalized, with interest rates based on the individual dentist’s unique financial situation, combined with several adjusting factors.
Flexible Underwriting
Dentist home loans still consider higher debt to Income ratios (DTI) with average FICO credit scores. Dentist borrowers must meet each bank's minimum credit score to get approved for the dental home loan program, but are recognized for their advanced education and superior earning potential.
Low Down Payments
With as little as 0-10% down, you can borrow up to $1,000,000 to purchase your new home. Down payments vary, with tier levels based on the loan amount. There are no hidden fees or pre-payment penalties, so you have a clear understanding of the terms as well as the flexibility for early pay-off.
No Mortgage Insurance (PMI)
No pricey private mortgage insurance (PMI), even with only 0-10% down, 90% loan to value (LTV). Unlike traditional borrowers needing PMI, medical professionals like you are safer borrowers, with increased income potential and historically responsible clients.
Competitive Rates
Get the most competitive interest rates in the market—even with 10% down payment or less and higher loan to value (LTV). Dentist home loans are more personalized, with interest rates based on the individual dentist’s unique financial situation, combined with several adjusting factors.
Flexible Underwriting
Dentist home loans still consider higher debt to Income ratios (DTI) with average FICO credit scores. Dentist borrowers must meet each bank's minimum credit score to get approved for the dental home loan program, but are recognized for their advanced education and superior earning potential.
Low Down Payments
Small down payments are one of the biggest driving factors in the growing popularity of dentist home loans. In a traditional mortgage situation, a borrower with a loan to value (LTV) rate greater than 80% would be forced to purchase private mortgage insurance (PMI). In our program, you will be connected with banks and lenders catering to medical professionals, and who only require up to 10% to purchase a home. Depending on the purchase or loan amount, the lender could require larger down payments based on a tier system.
No Mortgage Insurance (PMI)
When utilizing a dentist mortgage loan program, you will not be required to take out private mortgage insurance (PMI). Private mortgage insurance is a type of insurance which protects the lender if a borrower stops making payments on a mortgage note. This can be costly when added to other aspects of owning a home, including principal and interest payments, taxes, home owners insurance, HOA’s and other payments associated with owning property.
Competitive Interest Rates
Interest rates are often one of the first concerns when discussing taking out a mortgage loan. Despite allowing higher loan to value’s (LTV) with minimal down payments, the dentist mortgage loan program allows you to secure interest rates competitive with traditional mortgages. Interest rates vary on multiple adjusters and there is no one-rate-fits-all for dentists or other medical professionals.
Rates are typically determined based on multiple factors, including:
- Escrow of taxes and insurance
- Loan amount
- Property type and location: single family home, condo, townhome
- Loan to value (LTV)
- FICO (credit) score
- Type of loan: purchase loan or refinance
When speaking with a loan officer be prepared to answer those basic questions to help determine qualifying interest rates.
Flexible Underwriting
Underwriting is the lender’s department which decides whether or not you are approved for a dentist mortgage loan. A dentist can have more flexibility because banks and lenders are willing to take on risk, knowing the income potential of dentists and the lower default rate within the dental profession.
Loan Application Process
The loan process begins when you complete an application at a bank online.
- The Loan officer (or mortgage loan assistant) gathers needed information to submit the application to the underwriting department
- Once underwriting has all the necessary documents, either a conditional approval or denial is issued, depending on certain criteria
- Once the file is approved it moves forward to a final approval stage
- The dentist/borrower signs documents to close the loan and fund
Purchase, Refinance Mortgages
Purchase, Refinance Mortgages
Looking to get pre-approved?
Obtaining pre-approval helps you determine if you meet lender requirements when deciding to pursue a dentist home loan. Some benefits include:
- Discovering the loan amount you can realistically afford
- Provides evidence of your seriousness to sellers and real estate agents
- Introduces you to some of the possible loan options you may qualify for
- Speeds up the process of financing—some of the paperwork is already completed
Realtors will take you more seriously when making offers and showing you homes on the multiple listing service (MLS). If you’re happy with the terms outlined in the pre-approval or found that dream home, you can move forward with applying with the lender. To obtain a pre-approval, gather together some of the following items:
- social security number
- proof of employment and income
- self-employment documents
- previous 2 years’ tax documents
- place of residence
- recent bank account statements
- credit or FICO information
- gift letters
- monthly expenses
Keep in mind this is not a guarantee to lend, but carries a lot of weight in the transaction. The pre-approval is typically valid for 60-90 days, so once you have received it, you are ready for home shopping!
Ready to purchase your dream home?
Once you have identified a home, make an offer. If your offer is accepted (even if there is some negotiating between parties), you are ready to begin the next step. Similar to the pre-approval process, you will be required to complete an application and provide supporting documents. The lender will review your completed application and supporting documents, including:
- proof of employment and income
- tax documents
- bank statements
- self-employment documents, if applicable
- gift letters
- monthly expenses (to determine debt to income ratio)
From start to finish, this process could take up to 30-45 days to complete, so allow enough time once you identified a property. There will be underwriting, an appraisal, and an inspection. The seller will have the opportunity to repair issues with the home which may have been identified; this could extend that time period. However, if you were pre-approved, this process could be shorter since you already tackled much of the leg work.
Looking to lower your mortgage payment or release equity?
Are you looking to refinance to lower your monthly mortgage payment? Refinancing at a lower interest rate from your original purchase could lower your overall monthly payment. Other reasons to refinance include:
- Shortening your mortgage term (from a 30-year to a 20-year, for example)
- Take money out to make home improvements, finance education or pay down other debt
- Expand your dental practice
- One overlooked benefit of releasing equity from your mortgage is the tax benefit
Adjustable, Fixed Rates
Adjustable, Fixed Interest Rates
Adjustable Rates
Fixed Rates
Adjustable Rates
An adjustable interest rate mortgage (ARM) is a type of mortgage in which the interest will vary and adjust for the life of the loan. Adjustable rate mortgages are fixed for a short period of time and then will adjust yearly after that time period. There are advantages and disadvantages to ARMs, although they are a great option for dentists looking for a lower payment knowing that they will either live in the home for a shorter period of time or refinance once the fixed period is over.
Advantages
- Initial interest rate low
- Affordable monthly payments at first
- Affordable way to own a home for a shorter period of time
Disadvantages
- Risk of higher interest rates after adjustment
- Difficult to understand
- Higher refinance percentage after adjustment
Most lenders offer a fixed initial period of 3, 5, 7, or even 10 years. Some banks only offer certain adjustable fixed periods for dental and physician mortgage loans. With multiple options, it is important to understand clearly what the terms are before taking on an adjustable rate mortgage.
Fixed Rates
A fixed rate mortgage is a loan product wherein the interest and payment is fixed for a set number of years. Unlike adjustable interest rate mortgages (ARMS), this product will have the same consistent payment for the life of the loan, with only the ratio of principal to interest fluctuating over the loan’s lifetime. Like the adjustable rate mortgage, the fixed rate mortgage comes with some advantages and disadvantages.
Advantages
- Set interest rate—no changes
- Simple to understand
- Set payment amount makes budgeting easier
Disadvantages
- Higher interest rate than ARM’s
- Principal paid down more slowly than ARM’s
- If interest rates decline would need to refinance
Common terms of fixed-rate mortgages are 10, 15, 20, and 30 years. Fixed rate mortgages are great for dentists who know they will live at the property long term and want to take advantage of a lower interest rate without the risk of an interest rate increase.
Mortgage Products
10/1 ARM
Fixed for 10 Years-
Fixed for 10 years
-
Lower rate/payment
-
Amortized 30 years
15 Year Fixed
Fixed for 15 Years-
Fixed for 15 years
-
Lower rate for fixed mortgage
-
Pay off faster
20 Year Fixed
Fixed for 20 Years-
Fixed for 20 years
-
Lower rate for fixed mortgages
-
Quick pay off
30 Year Fixed
Fixed for 30 Years-
Fixed for 30 years
-
Typically higher rate of fixed mortgages
-
Lower payment
Mortgage Products
15 Year Fixed
Fixed for 15 Years-
Fixed for 15 years
-
Lower rate for fixed mortgage
-
Pay off faster
20 Year Fixed
Fixed for 20 Years-
Fixed for 20 years
-
Lower rate for fixed mortgages
-
Quick pay off
10/1 ARM
Fixed for 10 Years-
Fixed for 10 years
-
Lower rate/payment
-
Amortized 30 years
30 Year Fixed
Fixed for 30 Years-
Fixed for 30 years
-
Typically higher rate of fixed mortgages
-
Lower payment
Calculate Mortgage Payments
Calculate Mortgage Payments
You can calculate the estimated purchase price, interest rate, down payment and term of your mortgage with our calculator. Be aware that this tool only calculates principal and interest and does not include closing costs, property taxes, HOA’s and other costs involved with dentist mortgage loans.
Note that this calculator is just an estimation and should only be used as a helpful guide. Please check with your loan officer, bank or lender for additional details.
