How do you want to get started?
Quick application
With Millennial Home Loans quick online loan application, determining if you qualify for a Doctor Loan and for how much, has never been easier.
Talk to a Doctor Mortgage Expert
Not ready to apply online? No problem. Answer a few questions, and a Doctor Home Loan Mortgage Expert will call you back.
Home » Jumbo Loans Options » Doctor Loans »
M. D. Loans.
You Earned It!
The Low-Down Payment Mortgage for Doctors, Dentists, Pharmacists, and Veterinarians
Doctor Loans Program Guidelines
Loan Purpose
- Purchase only (No refinance allowed)
- No family-member purchase transactions allowed
Qualifying Professions*
- MD (Doctor of Medical, Ophthalmology)
- DDS, DMD (Doctor of Dental Medicine)
- OD (Doctor of Optometry)
- DPM (Doctor of Podiatric Medicine)
- DO (Doctor of Osteopathy)
- RPH (Pharmacists)
- DVM (Doctor of Veterinary Medicine)
*Must be verified
Product 5/5 Loan
- 5-year fixed period, adjusts every 5 years
- Tied to the 5-year Treasury Bill
- 2% initial and period rate adjustment cap
- 6% lifetime cap
- 2.50% margin
Credit Profile
- 720 minimum middle credit score with 5% down
- 700 minimum middle credit score with 10% down
- If more than one borrower on the loan use the lower of the two-middle credit score
- Foreclosure or bankruptcy on credit report not permitted
- Minimum of 3 trade lines, one of which has a 24-month history
- Can substitute with a Verification of Rent in place of a third tradeline or lacking a 24-month history
- No unpaid public records and collections (including medical). All public records and collections require written explanation
- No judgment, repossessions, or charge-offs in the last 60 months
- No mortgage delinquency in the last 12 months
LTV/CLTV
- Maximum calculation at the lesser of the purchase price or appraised value
- Transaction structured as a minimum 90% and 95% loan-to-value based on a minimum 700 and 720 middle credit score; respectively
- No subordinate financing
Loan Amount
- Financed loan amount not to exceed $2,000,000
Mortgage Insurance
- Not required
Ratios
- Maximum debt-to-income ratio: 43% debt-to-income ratio
- Qualified at start rate
- Student loans that are in deferment more than a year from settlement date, are excluded from qualifying ratios
Property Type
- 1 Unit Single Family Detached, Attached, or Condominiums
- Condominiums must be Agency Guidelines
- Property cannot be in a declining market
Occupancy
- Owner occupied only
- All borrowers on the loan must have ownership in and occupy the property
- No co-signers permitted
Property Valuation
- Full appraisal with interior inspection and photos
- Loan amounts over $650,000 require two appraisal reports. The lower value of the two reports will be used for qualifying purposes
Documentation
- All loans must be fully documented per Agency Guidelines
- For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)
Down Payment/Closing Costs
- Borrower must have 5% of own funds
- Seller contribution toward buyers closing costs:
- Up to 3% of the purchase price for 90% loan-to-value
- Up to 6% of the purchase price for less than 90% loan-to-value
- No gifts
- Reserves: two-month PITI required (non-liquid funds may be used for reserves)
Terms
- Amortization period: 30 years
Existing Properties Owned
- No additional properties can be owned prior to the home purchase using the M.D. loan
