Key Takeaways:
- Physician mortgage loans in Texas are available to medical doctors, dentists and other high-earning professions that typically carry large amounts of student debt.
- Texas physician home loans don’t require private mortgage insurance (PMI), saving you hundreds of dollars each month.
- Doctor loan options include up to 100% financing with high loan amounts reaching up to $1 million or more.
Texas has over 87,000 practicing physicians, according to data from the Texas Medical Board. This number is expected to grow as people and businesses flock to the state for various reasons. However, like many states across the country, this influx is resulting in a housing shortage which is causing home purchase prices to skyrocket.
The Texas real estate market has experienced a lot of volatility in recent months. For example, homes in the Austin-Round Rock area sold for 33% more in the third quarter of 2021 compared to 2020. However, higher priced homes in the same area drew far less interest in 2022.
Regardless of market conditions, a Texas physician loan can help your offer stand out and put you in your dream home sooner. Read on to learn about the top physician mortgage loan options in Texas.
Benefits of physician mortgage loans in Texas
A physician mortgage loan, sometimes called a doctor loan, can often make owning a home a reality much sooner than a conventional mortgage.
These programs have exclusive benefits, such as:
- No down payment financing. Many physician loan lenders offer up to 100% financing. However, a small down payment (e.g. 5% to 10%) might be required to access higher loan limits.
- No private mortgage insurance requirement. You can save hundreds of dollars each month by dodging the PMI requirement that typically comes with a down payment of less than 20%.
- Favorable treatment of student loan debt. Each physician mortgage lender treats student loan debt differently when calculating your debt-to-income ratio, or DTI for short. But you can expect a more lenient calculation that will ultimately benefit you during the underwriting process.
- Lower interest rates than a jumbo loan. If you’re looking to purchase a million-dollar home, you can generally keep your interest rate low with a physician mortgage loan.
The main potential negative of a doctor mortgage loan in Texas is that you really need to be prudent in the home buying process. You’ll likely qualify for a much higher loan amount than you would with a conventional loan. However, that doesn’t mean you’ll be able to responsibly afford a more expensive home or lot.
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13 Top Texas physician home loans
If you’re in the market for a home in Texas, consider these physician mortgage loans that are available to state residents.
1. Truist
The Truist doctor mortgage loan is available to eligible practicing physicians (MD, DO, DPM, DDS and DMD designations) and licensed residents, interns and fellows in an MD, DO or DPM program.
Residents, interns and fellows have access to loan amounts up to $750,000 with no money down.
Loan options for doctors and dentists with fewer than 10 years since completion of training include:
- 0% down for up to $1 million.
- 5% down for up to $1.5 million.
- 10.01% down for up to $2 million.
Medical professionals with a job offer can close up to 90s prior to the start date. For doctors and dentists with 10 to 15 years post-training experience, 89.99% financing is available for up to $1.5 million.
Truist caps DTI at 43%, but your student loan payment can be excluded from your calculation if it’s deferred for at least 12 months at the time of closing.
For more information, email Matt Albert or call him at 336-439-3560.
2. First National Bank of Omaha (FNBO)
FNBO’s physician mortgage loan program offers competitive rates and low down payment options for certain Texas healthcare professionals.
It is important to note that FNBO in Texas can only lend in the greater Dallas / Fort Worth metro area (approximately 11 counties). If you live in Houston, El Paso, Austin, or another metro area far outside of DFW, look elsewhere.
Practicing medical doctors, residents, anesthesiologists and dentists can access loan amounts up to $1.25 million.
Financing options include:
- 0% down for up to $850,000
- 5% down for $850,000 to $1.25 million
- 10% down for $1.25 million to $1.5 million
Physician assistants, nurse practitioners, certified registered nurse anesthetists, and veterinarians can access loan amounts up to $1 million.
Financing options include:
- 5% down for up to $750,000.
- 10% down for up to $1 million.
Note that student loan debt may be excluded in DTI calculations if your loans are deferred for 12 months.
Fore more information, email Abe Huerta or call him at 469-575-4730.
3. U.S. Bank
U.S. Bank’s physician mortgage program is available to medical physicians, residents, fellows, DOs and lawyers.
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
For more information on this doctor loan program, email Jonathan Brozek or call him at 916-602-4080.
4. Regions Bank
Regions Bank provides physician mortgage loans to prospective borrowers in various medical professional designations in Texas. Their Medical Professional Loans program offers no required PMI and no restrictions on how long an eligible medical professional has to have been practicing to be approved for a loan.
Regions Bank will also exclude some deferred student loan payments from your DTI ratio, making it easier to qualify for the mortgage amount you are seeking.
Eligible applicants include pharmacists, nurse anesthetists, nurse practitioners, physician’s assistants, veterinarians, chiropractors, optometrists, podiatrists, MDs, DOs, DMDs, DDSs and licensed attorneys. Residents and fellows are also eligible, but the program isn’t open to non-permanent visa holders.
30 and 15 year fixed-rate and 10, 7 and 5 year ARMs financing options include:
- 0% down for MD, DDS and DO.
- 3% down for pharmacists, nurse anesthetists, nurse practitioners, physician’s assistants, veterinarians, chiropractors, optometrists, podiatrists and licensed attorneys.
You can close up to 60 days before the listed start date on your employment contract or date of transferred employment.
Contact Regions Bank for more info. There is no credit check needed for a rate quote. Regions Bank offers fast and friendly consultations.
5. Evolve Bank & Trust
Evolve Bank offers doctor mortgage loans to physicians, dentists, pharmacists, optometrists, podiatrists, veterinarians, RNs, PAs, NPs and clinical nurse specialists. However, you can also qualify if you’re a professional outside of the medical field. For example, ATP pilots, CPAs and attorneys can apply for a physician loan from Evolve Bank.
You must be within 10 years of starting your career to be eligible. But the program is also open to H-1B visas and green card holders.
Financing without PMI is available for:
- 0% down for up to $1 million.
- 5% down for up to $1.5 million.
You’ll need to meet minimum credit score requirements to qualify and provide income documentation for at least two years if you’re a 1099 worker.
Contact Tish Kumar to find out more about their adjustable-rate mortgage options in Texas.
6. BMO Harris
Get an affordable home loan with BMO Harris, that comes with no PMI requirement plus flexible debt-to-income underwriting options.
Licensed professionals with MD, DDS, DMD or DO designation can qualify. Even if you have student loan debt, this program is perfect for you. If are starting residency soon and have an employment contract with a start date within 90 days of closing, check out BMO Harris.
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
Contact: Patrick O’Malley. Email Patrick or call him at 623-283-1433.
7. Cadence Bank
Cadence Bank has more than 400 locations across the South, Midwest and Texas. Its Early Professionals Loan Program is available to doctors, dentists, pharmacists, optometrists, ophthalmologists, nurse anesthetists, attorneys, architects, CPAs, engineers and Ph.D-level professors.
Eligible applicants can receive up to 100% financing for loans up to $1.5 million.
Rental and investment properties are explicitly excluded from this program. However, there are a range of mortgage options for primary residences, including fixed-rate, adjustable-rate mortgages (ARMs) and 5/1 ARMs.
8. Extraco Banks
Medical physicians, residents and full-time medical instructors in Texas might be eligible for Extraco’s physician loan program. Financing options include:
- Up to 100% financing for up to $548,250 when purchasing or refinancing a primary residence.
- 97% financing for loans up to $850,000.
- Up to 100% financing for up to $300,000 on lot and land loans in qualifying counties.
This Central Texas physician loan program has flexible borrower requirements, including approvals with credit scores as low as 660 in some cases. Mortgage options include a 30-year fixed rate or 7/1 ARM.
9. First Financial Bank
First Financial Bank has 78 branches across the state of Texas and offers an exclusive physician mortgage program. Financing options include:
- Up to 100% financing for loans up to $510,400.
- 95% financing for up to $1 million.
- Up to 90% financing for loans over $1 million.
Note that your life insurance must be assigned to First Financial Bank for 20% of your total mortgage if 95% financing is provided.
10. UMB Bank
UMB Bank’s Doctorate Professional Mortgage Loan offers no required private mortgage insurance (PMI), up to 80% cash-out refinancing, no age restrictions, and low down payment options to those with an MD, DO, DDS, DMD, OD, and PharmD, as well as attorneys.
Borrowers must have an employment contract or signed offer letter, a copy of their license, and close within 60 days of contract acceptance.
Financing options include:
- 0% down for up to $1 million (must be an attending physician)
- 5% down for up to $1.5 million (must be an attending physician)
- 10% down for up to $2 million
15, 20, and 30 year fixed-rate and 5/1, 7/1, and 10/1 year adjusted-rate mortgage options are available.
Contact: Bryant Pryor. Email Bryant.
11. KeyBank
KeyBank’s doctor and dentist program extends its eligibility to those who are a resident, fellow, or attending with an MD, DO, DPM, or DMD. Those who can provide a signed employment contract can close 90 days prior to his or her start date of employment.
Borrowers can be granted 100% financing on a conventional mortgage.
KeyBank has 30, 25, 20, 15, and 10 year fixed rate options, as well as adjustable rate options of 10/6 ARM, 7/6 ARM, and 5/6 ARM.
Maximum cash out available is $1,000,000.
Contact: J Mansisidor NMLS# 354606. Email J or call him at 757-926-0106.
12. First Horizon
First Horizon Bank has a flexible physician mortgage option for MD, DO, OMS and DPM professionals. It comes with no upfront PMI, higher loan amounts and very low credit score requirements — borrowers with a score of 680 can qualify. You can also close up to 90 days before starting a new job, so long as you have an employment contract in hand.
Financing choices include:
- 0% down for up to $1.5 million
- 5% down for up to $2 million
- 10% down for up to $2.5 million
They also offer H-1B visa non-citizens loans and 100% financing.
Contact: Brent Eckhardt. Email Brent or call him at 910-260-5152.
13. Laurel Road
Laurel Road’s physician mortgage is available in all 50 states to many professions, including interns, residents, fellows, doctors, dentists, clinical professors, researchers, or managing physicians who have a degree in Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Podiatric Medicine (DPM), Doctor of Dental Surgery (DDS), Doctor of Dental Medicine (DMD). Retired doctors are not eligible.
Qualified borrowers can access up to $1 million with as little as 0% down for purchasing a primary residence. Second homes are allowed, but you’ll need a larger down payment.
Related: See our Physician Mortgage Loan Calculator for estimating payments and more
Does a Texas physician loan make sense for your next home?
Texas physician mortgage loans come with huge benefits and very little downside. You won’t have to save up for a large down payment, which means you can get into your new home a lot sooner. You also won’t have to budget for monthly or lump sum PMI payments.
Instead, you can use that money for paying down student debt, investing for retirement or planning for renovations. However, if you’re prone to lifestyle creep, this type of loan might not be the best choice. You run the risk of signing for a mortgage payment that you might not be able to safely afford in the future.
If you’re looking to explore physician mortgage loans in other states, check out our doctor mortgage loan finder as a starting point in your search.
Get Quotes for Your Doctor Mortgage
What mortgage product would you like a quote for?
Step 1: Job
Step 2: Home
Step 3: Your Info
What is Your Occupation Status Currently?
NEXT
What most closely represents the price range of the house you’re searching for?
What is your preferred down payment?
What stage are you at in the home buying process?
How soon do you hope to secure a mortgage approval?
How many banks would you like quotes from?
Have you experienced any bankruptcies or short sales?
NEXT
