If you’re a doctor looking to buy a home, consider a physician mortgage from a lender like Truist, specializing in doctor loans.
They understand your unique situation and offer programs tailored to physicians.
A physician mortgage from Truist could mean lower down payments, lower interest rates, and the ability to qualify when a traditional mortgage might be out of reach.
But are there any downsides or drawbacks to a physician mortgage from Truist?
We’ll explore the pros and cons to help you decide if it’s the right choice for your new home as a doctor.
Buying a house is a big milestone, so you want to go in with eyes open to all the options.
What Is the Truist Physician Mortgage Program?
So what exactly is the Truist Physician Mortgage program? It’s a specialized home loan created specifically for doctors, dentists, and other medical professionals.
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As a doctor, your skills and services are always in demand. Truist sees physicians as having stable, secure jobs and income. This allows Truist to view you as a lower-risk borrower.
The Truist physician loan is intended to purchase or refinance a primary residence.
This means it is specifically designed for buying or refinancing the home where the borrower will reside as their principal dwelling place.
The biggest perk of the Physician Mortgage is that it allows you to qualify for a mortgage based on your future earning potential rather than just your current income.
A few other nice features include:
- No private mortgage insurance (PMI) is required.
- Option for interest-only payments for the first 5-10 years so you can keep payments lower while in residency or fellowship.
- No prepayment penalties if you pay the loan off early.
- Dedicated support to help guide you through the process.
Truist’s physician loan program is available to medical professionals with the following designations:
- MD (Medical Doctor),
- DO (Doctor of Osteopathic Medicine),
- DPM (Doctor of Podiatric Medicine),
- DDS (Doctor of Dental Surgery), and
- DMD (Doctor of Dental Medicine).
Eligible individuals include practicing physicians, dentists, oral surgeons, and residents or fellows.
However, it’s worth noting that Truist only considers practicing physicians and dentists with less than ten years of experience to be eligible for this loan program.
Pros of the Truist Physician Mortgage
Truist physician mortgage has several loans, including the following:
1. Low Down Payment
One of the biggest pros of the Truist Physician Mortgage is the low down payment requirement.
Truist offers different financing options based on the loan amount. The program provides:
- 100% financing for loan amounts up to $1 million.
- 95% financing for loan amounts up to $1.5 million.
- 90% financing for loan amounts up to $2 million.
Eligible borrowers can potentially secure a loan without making a down payment, or with a minimal down payment, depending on the loan amount.
2. Flexible Repayment Terms
Truist also offers flexible repayment terms for physician mortgages. You can choose between 15-year and 30-year options, depending on your needs and financial situation.
Shorter terms, like 15 years, will allow you to pay the mortgage off sooner, saving you money in interest charges.
Longer 30-year terms will have lower monthly payments, which may be better if you want more cash flow.
Truist provides options to select what works best for your unique situation.
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3. No Private Mortgage Insurance
Private mortgage insurance, or PMI is an added insurance cost that some borrowers with low down payments have to pay.
The good news is Truist waives PMI for physician mortgages. This can save you hundreds of dollars per month in insurance premiums.
Without PMI, more of your monthly payment will go directly toward paying down your principal balance.
4. High Loan Amounts
As a physician, you likely have a higher earning potential than most other professions.
Truist considers this by offering physician mortgages up to $2 million. This means you can choose a home in a neighborhood you like rather than being limited by a lower pre-approval amount.
After making payments for a period of time, you may also have opportunities to refinance to a lower rate or take cash out for other major life milestones.
5. Flexible Terms
In addition to high loan amounts, Truist provides terms from 10 to 30 years so you can choose what fits your budget and financial goals.
They also waive lender fees like underwriting and processing charges for physician mortgages.
While they charge standard third-party fees for appraisals and credit reports, they aim to keep costs low so that more money goes toward your down payment and new home.
6. ARM and Fixed-Rate Options
Truist’s physician loan program offers adjustable-rate mortgage (ARM) and fixed-rate mortgage options.
An ARM has an interest rate that may change over time, while a fixed-rate mortgage maintains the same interest rate throughout the loan term.
Borrowers can choose the option that best suits their financial preferences and goals.
Cons to Consider With the Truist Physician Mortgage
While the Truist Physician Mortgage does offer some attractive benefits, there are a few potential downsides to consider before applying.
1. Limited Eligibility for Experienced Practitioners
Truist has a specific eligibility requirement for its physician loan program, which states that practicing physicians and dentists with over ten years of experience are not considered eligible.
Individuals practicing their profession for more than ten years may not qualify for the Truist physician loan.
Experienced physicians and dentists have to consider alternative loan options that may be better suited to their circumstances.
2. They Only Finance Private Residence
Truist’s physician loan program is designed explicitly for financing private residences.
The loans provided by Truist under this program are not intended for purchasing or refinancing business places.
Truist does not offer physician loans for investment properties or other real estate transactions.
This can be limiting if a physician needs a mortgage for his upcoming practice.
How to Apply for the Truist Physician Mortgage
To apply for Truist Physician loans, you will need the following;
Gather Your Documents
To apply for the Truist Physician Mortgage, you must provide some essential documents to verify your income and employment.
Have the following ready:
- Pay stubs from the last 30 days
- W-2 or 1099 tax forms from the last 2 years
- Personal tax returns from the last 2 years
- Business tax returns (if self-employed)
- Proof of medical license (if newly licensed)
- Proof of board certification (if applicable)
- Proof of partnership or employment contract (if applicable)
Check Your Credit Score
Truist will evaluate your credit score and history to determine your eligibility for the physician mortgage program.
Check your credit reports and scores ahead of time to ensure there are no errors or signs of fraud.
If needed, take action to improve your scores by paying down debt or limiting new applications. The higher your score, the better terms you can expect to receive.
Apply Online or In Person
You can apply for a Truist Physician Mortgage on their website or by visiting a local branch.
Their online application allows you to provide information and upload documents directly and typically takes around 30 minutes to complete.
Applying in person at a branch allows you to work directly with a mortgage specialist who can walk you through the application and answer any questions.
Either way, be prepared to provide the required documents.
Interview and Approval
Once Truist has received your application and verified your information, they will schedule an interview to review your application details.
Bring any follow-up documents requested. If approved, you’ll receive a preapproval letter stating the maximum mortgage amount you qualify for based on your income, assets, and credit score.
Shop for homes and make an offer with the confidence of having your financing preapproved.
Do Nurse Practitioners Qualify for Physician Loans?
The eligibility of Nurse Practitioners for physician mortgages depends on the specific mortgage lender.
Each bank or mortgage lending company offering a doctor home loan program has its own set of requirements.
Some lenders limit their program to M.D.s and D.O.s, while others may extend it to various medical designations, including Nurse Practitioners.
Specific lenders, such as U.S. Bank, may only offer their doctor loan program to M.D.s and D.O.s, while others, like Northpointe, may include almost all the listed medical designations.
If you are a Nurse Practitioner looking for mortgage loans, some lenders offer doctor loan programs and allow Nurse Practitioners to apply.
Flagstar covers various medical specialties, including Nurses. They also offer 100% financing for loans up to $650k for residents in training and up to $1.5MM for practicing professionals.
2. Consumers Credit Union
Consumers Credit Union extends their doctor home loan program to Nurse Practitioners.
They provide 100% financing up to $750k for residents and attending physicians and 95% financing up to $2MM with a small down payment.
3. Frandsen Bank & Trust
Frandsen Bank & Trust includes Nurse Practitioners in their physician mortgage program.
They require a minimum 5% down payment and offer 95% financing up to $1.25M or 90% financing up to $2M.
Is BB&T and Truist Bank the Same?
Yes. BB&T and SunTrust merged in December 2019, and the resulting entity is now known as Truist Bank.
The merger brought together the two banks to create a new financial institution under the Truist name.
For most medical professionals, the many benefits of the Physician Mortgage far outweigh its downsides.
It’s important for individuals considering Truist’s physician mortgage program to weigh these pros and cons with their specific circumstances and needs.
Additionally, exploring other lender options and comparing their offerings can provide a comprehensive understanding of available choices in the physician mortgage market.
If you’re a doctor looking to buy a home, the Truist Physician Mortgage program could be an ideal solution to help you qualify for a mortgage.