As a physician, you have unique lending options, like physician loans offering higher loan amounts and more flexible underwriting.
Huntington Bank is one option for physician loans, but how does their program compare to others?
We will compare Huntington’s physician loan to other top programs to see how it measured up in areas of qualifying requirements and downpayment.
Read on to determine if Huntington Bank’s physician loan is the right choice for your new practice.
What are Physician Loans?
Physician mortgages, also known as doctor loans or physician loans, are specialized home loan programs specifically designed for physicians and eligible healthcare providers.
These mortgage programs offer unique advantages tailored to the needs of doctors, including private mortgage insurance (PMI) waivers, no down payment requirements, and relaxed debt-to-income approval criteria.
These advantages are offered with the understanding that physicians typically have a delayed start to their careers, often entering the workforce in their mid to late 30s.
Physician mortgages provide a tailored solution to the unique financial circumstances of doctors, offering benefits that align with their professional journey and potential future earnings.
The Huntington Banks Physician Loan Program
Huntington Bank is currently ranked as the 26th largest bank in the United States.
They provide a comprehensive range of traditional banking services, encompassing checking and savings accounts, various types of loans, credit cards, and investment services.
One notable aspect of Huntington Bank is its extensive home lending and refinancing programs available to borrowers nationwide.
These programs cater to individuals seeking mortgage loans or refinancing options.
In addition to its wide array of services, Huntington Bank also offers physician home loans to eligible doctors.
Although this particular service may receive less attention than its other offerings, it provides specialized home loan options tailored to the unique needs of qualifying physicians.
Their physician loan program provides competitive rates and down payment options to help doctors buy a home sooner in their careers.
Pros of Huntington Physician Loan
There are several benefits to opting for the Huntington Physician loan:
1. Generous Loan Amounts
Huntington Bank offers physician mortgage loans up to $2 million. This amount covers the purchase price for most residences.
Whether you’re looking for a modest starter home or an upscale property, Huntington’s loan amounts can accommodate most physicians’ needs.
2. Flexible Terms
Physician mortgage terms range from 10 to 30 years. Shorter terms, like 10 or 15 years, will allow you to repay the loan sooner and save on interest charges.
Longer terms, up to 30 years, will spread out your payments over time for lower monthly costs, though you’ll pay more interest overall.
Work with your loan officer to determine an ideal term based on your financial situation and goals.
3. Low Down Payments
Huntington only requires a down payment of 10% of the purchase price for their physician mortgage loans.
This is lower than the typical 20% required for conventional mortgages and allows physicians to buy a home sooner without needing as large of a down payment upfront.
Huntington also does not charge private mortgage insurance (PMI) on loans with down payments under 20%, which can save you hundreds per month.
3. Rate Discounts
You may be eligible for discounted interest rates through Huntington as a physician.
Physicians are considered a “preferred profession” by Huntington, meaning they may qualify for lower rates than the general public.
Discounts of 0.25-0.5% are common. Even small rate decreases can save thousands over the life of the loan.
Ask your loan officer about physician rate discount programs to determine eligibility.
4. Lower Rates
Huntington often offers lower interest rates on physician loans than big banks. Their rates are usually 0.5-1% lower, which can save you thousands over the life of the loan.
Every little bit helps when you have hundreds of thousands in student loan debt and are just starting your career.
5. Less Strict Requirements
To qualify for a physician loan from Huntington, you only need a signed contract for future employment.
Some other lenders require you to be already employed before approving a loan.
Huntington’s lenient requirements mean you can get approved and lock in an interest rate even before starting your residency or fellowship program.
Cons of Huntington Physician Loan
While Huntington’s physician loan has an outstanding offer, they also have some downsides:
1. Limited Availability
Huntington Bank’s physician loan program is only available in some states. While it is offered in approximately 40 states across the country, the absence of participation in states like California, Texas, and New York, which are among the largest in population, is a significant drawback.
2. High Down Payment Requirement
To qualify for 100% financing through the physician loan program, you need a credit score of at least 700 (or 680 sometimes).
This can pose a challenge for many young doctors who may have accumulated substantial student debt during their years of schooling.
It may be challenging for them to achieve the necessary credit score. Individuals with lower credit scores may need to consider other lenders for their mortgage needs.
How Does Huntington’s Bank Physician Loan compare to Others?
When considering a physician mortgage, there are certain factors to consider to determine which has the best offers.
How does Huntington Bank’s physician loan program compare to other major lenders such as Citizens Bank, Truist, Bank of America, and TD Bank, especially in the following areas:
1. Qualifying Physicians:
Huntington Bank’s physician home loan program is available to healthcare professionals with MD, DO, DVM, DPM, DDS, and DMD degrees.
- Citizens offer loans to those with MD, DO, DDS, or DMD degrees.
- Truist offers loans to those with MD, DO, DPM, DDS, or DMD degrees.
- Bank of America offers loans to those with MD, DO, DPM, DDS, DMD, or DO degrees.
- TD Bank offers loans to those with MD, DO, DPM, DDS, or DMD degrees.
Huntington Bank stands out by offering eligibility to a broader range of healthcare providers, including veterinarians, which is a notable advantage.
2. Down Payment Requirements:
Huntington Bank offers flexible financing options, including 100% financing up to $1 million, 95% financing up to $1.25 million, and 90% financing up to $2 million.
Here’s how it compares to other lenders:
- Citizens Bank: 95% financing up to $850k, 89% financing up to $1 million
- Truist: 100% financing up to $2 million (if less than ten years past end of training)
- Bank of America: 95% financing up to $1 million, 90% financing up to $1.5 million
- TD Bank: 100% financing up to $1 million, 95% financing up to $1.5 million, 89.9% financing up to $2 million
Huntington Bank’s flexible financing options rank favorably among these lenders, especially compared to Bank of America and Citizens Bank.
It is on par with TD Bank, while Truist stands out with its exceptional program for new physicians.
3. Credit Score/DTI Requirements:
Each lender establishes its credit score and debt-to-income ratio (DTI) requirements.
Huntington Bank requires a credit score 680 and a maximum DTI ratio of 50%. While not all lenders publish their specific requirements, here are some comparisons:
- Citizens Bank: 700 credit score
- Truist: 680 credit score
- Bank of America: 700 credit score
- TD Bank: 720 credit score for 100% financing
How to Qualify for a Huntington Physician Loan
To qualify for Huntington Bank’s Physician Loan, you must meet a few basic criteria.
1. Income Requirements
Your income will be evaluated to ensure you make enough to repay the loan comfortably.
Huntington will review your salary and bonus income from the last two years and your future earning potential based on your specialty and experience.
2. Down Payment
While a down payment of at least 20% is typically required for most home loans, Huntington’s Physician Loan allows down payments as low as 5%.
This makes it easier to get into a home sooner without needing as much cash upfront.
3. Debt-to-Income Ratio
Your debt-to-income ratio (DTI) compares your monthly debt payments to your monthly income.
For the Physician Loan, Huntington allows a DTI as high as 50%, greater than most conventional loans.
You may still qualify even with substantial student loan debt or other liabilities.
4. Credit Score
You will need a minimum credit score of 620 to qualify for a Physician Loan. The higher your score, the lower your interest rate may be.
If your score needs some improvement, talk to a Huntington Home Lending Advisor about ways to strengthen your credit before applying.
5. Additional Criteria
You must be licensed to practice in the state where you’re buying a home.
Huntington also prefers at least one year of practice experience, which can sometimes be waived. U.S. citizenship is required for this type of physician mortgage.
Huntington offers competitive physician loans, especially if the location isn’t an issue. Compare their current rates and terms to other major national lenders.
While Huntington may charge slightly higher fees, the money you could save on interest over the loan’s lifetime may offset those initial costs.
For many new physicians, Huntington deserves strong consideration for financing your transition into practice.
At the end of the day, you need to weigh your situation’s pros and cons to determine what makes the most sense for you.