Pharmacists can sometimes accumulate monster amounts of student loan debt in the hope of a higher ceiling for earning potential. This can seriously hinder their ability to qualify for a new home and live the “American Dream of Homeownership”.
At a glance:
- Some banks allow pharmacists to utilize a Medical Professional Loan, sometimes as little as 0% down up to $1,000,000.
- These loans also allow you to avoid the dreadful mortgage insurance, which can cost upwards of $1,000 per month
- Student loan debt is generally omitted or given a more generous calculation when qualifying for a pharmacist mortgage.
A few banks have loans for medical professionals, such as pharmacists, for as little as 0% down on a home up to $1,000,000. Many of these products were branched off from “Physician Mortgage” loan products or “Doctor Loans.”
So if some of these Physician Loan programs allow pharmacists, how do you know which ones? That’s what we’ll discuss! What are the perks of a Pharmacist or PharmD Mortgage Loan? A Medical Professional Loan that includes Pharmacists offers a variety of different benefits. One of the biggest advantages is that they generally don’t require mortgage insurance (PMI). Mortgage insurance is a special insurance that a lender charges when you’re putting less than 20% down on a home which only ensures the lender that you will make your payments on time and avoid any short sale or foreclosure. THAT’S RIGHT! You’re paying extra monthly insurance to protect the lender…there’s no benefit to you, and you’re paying it! To make matters worse, the monthly amount for mortgage insurance alone can sometimes run up close to $1,000 per month, depending on the loan amount.
Avoiding mortgage insurance is excellent, but there are also other benefits, including the following:
- Most programs allow some leniency surrounding student loan payments, thus allowing you to qualify for a beautiful home
- Higher loan amounts are allowed under these programs, too, than general conforming loan programs that allow for lower down payments (The current limit is $726,200 without using one of these loans)
- Many lenders also allow you to close 60 to 90 days before starting a new job or being matched with a new company.
Yes, these loans sound great! However, not all banks offer this special financing to pharmacists, and 
many lenders have no clue these programs even exist. It’s usually best to go to a loan officer working at a bank rather than one that your real estate agent refers you to.
Without further ado, here are our top 6 banks specializing in Pharmacist Mortgage Loans:
Evolve Bank and Trust has an entire group dedicated to Medical Professionals called Physician’s Capital. They allow many medical professionals to utilize the doctor loan, including Pharmacists. They offer 0% down on purchases or refinances up to $1 million, 5% down up to $1,250,000, and 10% down options up to $2 million. They offer 5/6, 7/6, and 10/6 ARM (Adjustable Rate Mortgage) products amortized over 30 years.
The one caveat to their program, a very common rule at most physician banks, is that Evolve requires medical professionals to be within ten years of graduating, residency, or fellowship, whichever came last. Evolve does not require mortgage insurance (PMI) for any of the above options. Another positive is that they allow you to own one other home, which is somewhat unique to Pharmacist Mortgages. Generally, you have to be a first-time home buyer to qualify.
Corey Weber is our recommended lender with Evolve Bank and Trust! Click here to apply now.
States available: Alabama, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming.
Flagstar Bank serves pharmacists in all 50 states and Washington, D.C., offering a variety of adjustable-rate mortgages (ARMs). Their loan program allows for 0% down to a $1 million loan amount. Also, similar to many other Physician Loan programs, pharmacists must be within ten years of graduation to qualify for the program.
Bernard Nubla is our recommended lender with Flagstar! Click here to apply now.
States available: Alabama, Alaska, Arizona, Arkansas, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming.
Like Evolve Bank and Trust, First Merchants Bank also allows PharmD to utilize their physician loan program to purchase a home up to $1,000,000 with a $0 down payment. They also offer loan amounts up to $2,000,000 with a low down payment, depending on the loan amount.
States available: Florida, Illinois, Indiana, Michigan, Ohio
Frandsen Bank and Trust also allow pharmacists to utilize their Physician Loan program. They offer low down payment options for loan amounts up to $2 million with no mortgage insurance..
States available: Minnesota and Wisconsin
Fulton Mortgage Company primarily serves East coast Pharmacists with some of their options, which include an incredible 0% down for up to a 1.5 million dollar home. They offer fixed rate options of 15 and 30 years and a suite of ARM (adjustable rate mortgage) products. Like other Physician Banks, Fulton Mortgage Company limits the time since graduating to utilize the program. However, instead of 10 years, their limit is 15 years post-graduation creating a little more wiggle room on purchasing that first home.
States available: Maryland, Washington DC, Virginia, Delaware, New Jersey
UMB Pharmacist Loan program offers a 0% down payment option up to $1,000,000 as long as you’re in one of the states they have chosen to do business in.
One downside to their program is that they don’t pharmacist loan program is that they don’t offer the 0% down payment option to pharmacists who are still in residency. They do, however, have other low-down payment options available.
States available: Colorado, Arizona, Texas, Oklahoma, Kansas, Nebraska, and Missouri
Is a pharmacist mortgage loan right for you?
For most pharmacists searching for a home, all of the above pharmD mortgages are great options compared to the alternative conforming and/or government types of loans.
As rapidly as real estate tends to increase in price year over year, real estate is a great way to build up a different type of wealth you wouldn’t otherwise have the opportunity for another few years.
Being able to avoid mortgage insurance and putting 0% down really shifts all of the risks to the pharmacist bank rather than carrying that weight on your shoulders.
As a bonus to utilizing one of these programs, you can instead use that extra money for a small remodel or to furnish your new home, or maybe even just put it away for a rainy day.
Pharmacist mortgages are an exclusive benefit to working in the medical field that gives you a clear advantage at home ownership over the average joe. Clearly, there are a few different options that we are very familiar with at Medicalhomeloans.com. Please let us know your scenario, and we’d happily match you with what we feel is the best fit for you!
