Once upon a time . . .

Using physician loans to buy second homes or investment properties really was a fairy tale . . .

When the story of physician loans first began, our protagonists—the poor, but virtuous, young doctors—were crippled by their high debt-to-income ratios. These poor doctors had educations but no place to live. Sadly, they couldn’t reach their castles because the notorious Fannie Mae and Freddie Mac stood guard at the gates.

Then one day, along came the cavalry. Mighty Mortgage Loan Officers rode in on their white horses to save the day. Using their magical physician loan powers, they were able to fight back the gatekeepers and escort the young doctors safely inside. After that, the doctors lived happily ever after as kings and queens of their own castles.

A Whole New World . . .

Ok, I’m exaggerating. But, nowhere in that story did you hear about the Mortgage Loan Officers whisking the young docs off to their vacation homes on Kiawah Island. Until now . . .

Now, there actually are physician loans that can be used to purchase second homes and investment properties. After doing a good bit of Internet digging and a lot of calling banks, we’ve discovered a few banks that will let you use their physicians loans for purchasing second homes or investment properties.

Physician Loans

Here they are:

Suntrust Mortgage

Available in these states: AL, AR, DC, DE, FL, GA, MD, MS, NC, PA (only select counties in PA) SC, TN, VA, WV

Suntrust offers two types of physician loans—one for Residents/Interns/Fellows and another for Practicing Physicians. Both of these programs are limited to physicians, dentists, and podiatrists.

While the doctor loan is limited to primary residences, all of you medical folks will have options to finance second homes under different programs. Typically, at least 10% down would be needed, and there may be options without monthly mortgage insurance.

To find out more, Josh Feldman or Jules Deas a call. They work with medical professionals all the time and are happy to help.

BankSNB

Available in these states: AK, CO, KS, OK, TN, TX

BankSNB also offers two programs. The first is their traditional Doctor Home Loan Program. It is only available to physicians and dentists and can only be used for primary home purchases.

However, their new Healthcare Professional Mortgage Loan Program works for either primary or secondary home purchases. Even better, this program is available to just about any professional in the healthcare industry, with some exceptions. It doesn’t matter if you’re a podiatrist, chiropractor, veterinarian, optometrist, pharmacist, nurse or NP, PA, PT, OT, or even a pharmaceutical rep. Basically, if you’re a healthcare professional, this program is open to you. And yes, physicians and dentists can still participate too.

Some of the main features of that program are available here, but to find out more details, contact Drew Daniels, who specializes in physician loans.

First National Bank

Available in these states: GA, MD, NC, OH, PA, SC, TN, VA, WV, and DC 

FNB also allows you to use their physician loans for second homes and investment properties. However, their program is only open to physicians, dentists, and veterinarians. Some of the features of their physician loans, which you can read more about here, are slightly different when purchasing second homes. So, Larry Wise who can walk you through all the ins and outs.

Synovus Mortgage

Available in these states: AL, FL, GA, MS, NC, SC, TN

Synovus has physician loans that are available to physicians, dentists, and podiatrists, which you can read more about here. When using their physician loans for second homes, Synovus does require at least 10% down. And sorry, residents, but you’re not allowed to use these physician loans on secondary home purchases. Right now, the bank is only extending the secondary home offer to practicing doctors finished with their training.

Independent Bank

Available in these states: MI, OH

As with BankSnB and Suntrust, Independent Bank has a program open to more folks than just physicians. In fact, their Professional Loan is available to pretty much anybody with a graduate degree practicing in their field. And, it’s available to use on second homes starting at just 0% down up to $453,000 (anything above that up to $1,000,000 requires 10% down). Also second homes purchased with this loan are limited to single family homes, so that means no condos, town homes, etc. To find out more, you can read about their program here, or give Chad Hop a call.

Chemical Bank

Available in these states: MI, OH

I don’t know if the doctors in the Michigan and Ohio really enjoy vacationing more than the rest of us, but they’ll be happy to hear that they have a second option on physician loans for second homes. However, unlike Independent Bank’s program, these physician loans are only available to physicians, dentists, and chiropractors. Click here to read more about their program.

Happily Ever After . . .

Well, now that we’ve helped to make your second home a dream come true, we hope that you will live happily ever after.  Just don’t forget to invite your Mortgage Loan Officers down to that beach house on Kiawah Island. Hey, that invite should be worth at least another discount point on your interest rate, right?