5 Physician Loans in Colorado for Homebuyers

The pandemic has created a hot real estate market and that’s especially true in places like Colorado. In fact, in 2020 more people moved to the state of Colorado than out of it, according to the Denver Metro Association of Realtors. The state is well-known for its stunning geography, laid-back culture, and an abundance of outdoor activities to suit whatever flavor of exercise you enjoy.

Given so much real estate competition and rising home prices, getting a conventional mortgage might not be the right fit for everyone. If you’re a physician or dentist, you can typically apply for physician mortgage loans to cover financing toward a new house, often at better terms.

Learn more about physician loans in Colorado and how they work, plus the top five physician home loans in Colorado.

How do Colorado physician mortgage loans work?

A physician mortgage loan, sometimes referred to as a doctor mortgage loan, is a unique type of mortgage available to medical professionals. Typically, given the name, they’re designed with physicians in mind but can include dentists in some scenarios.

Unlike a traditional mortgage that requires putting a 20% down payment or requires private mortgage insurance (PMI), physician loans typically have flexible down payment options. Physicians who qualify could pay zero down or up to 10% as a down payment instead of the standard 20% requirement, but with no PMI.

Due to the cost of medical school and the student loan debt that follows, many early-career physicians have a high debt-to-income (DTI) ratio. A high DTI ratio can make it difficult to qualify for a traditional mortgage. But physician loans or doctors loans are geared toward physicians because of their high income potential and relative income stability.

Physician mortgage loans typically have adjustable or variable rates which change over time. And even though you might get approved for a mortgage with little to nothing down, you should still be mindful of your overall budget.

5 lenders that offer physician mortgage loans in Colorado

Physician home loans in Colorado are geared toward doctors who want to buy a primary residence in the state. If you meet this preliminary criteria, consider the following five lenders for physician loans in Colorado.

1. Citizens Bank

Citizens Bank has various financial products including student loan refinancing, healthcare banking, and the Citizens Bank Doctor Loan Mortgage Program.

Who’s eligible:

  • Doctors of Medicine (MD)
  • Doctors of Osteopathic Medicine (DO)
  • Doctors of Dental Surgery (DDS)
  • Doctors of Dental Medicine (DMD)

Eligibility requirements:

  • Must be a current resident, fellow or intern, or have completed residency within the past 10 years
  • Only available in select states

Loan terms:

  • Fixed-rate or adjustable-rate mortgage options
  • Qualify for up to 95% financing with no mortgage insurance

Find more info:

You can book a consultation with Citizens Bank or give them a call at 1-800-4BUSINESS.

2. KeyBank

Another option for doctor loans Colorado is KeyBank. The bank offers its Medical Professional Loan to meet the mortgage needs of physicians or dentists.

Who’s eligible:

Eligibility requirements:

  • Available if you need a mortgage for a primary residence or second home
  • Also available for one-unit single-family homes, condos or other planned unit developments

Loan terms:

  • No PMI required
  • Fixed or variable interest rate options
  • Maximum mortgage loan $3.5 million
  • Loan to value (LTV) up to 100%

Find more info:

You can reach out to a mortgage loan officer based on your zip code or call 1-800-539-8336.

3. UMB Bank

UMB Bank is based out of Kansas City, MO and offers various types of mortgages including physician loans in Colorado. Though it’s not expressly advertised on its site you can reach out to Student Loan Planner’s UMB Bank contact below to get information on the bank’s physician mortgage.

Who’s eligible:

Eligibility requirements:

  • Contact UMB Bank to see if you qualify.
  • Lenders typically look at your total income, debt-to-income ratio, credit score, as well as your employment resident history.

Loan terms:

  • Learn more about UMB Bank’s physician mortgage loan features through our contact, below.

Find more info:

To learn more about UMB bank physician mortgage options in Colorado, reach out directly to Douglas Crouse at 816-728-3631 or [email protected].

4. Union Bank

Union Bank is another lender to check out when it comes to physician home loans in Colorado. Its Doctor Loan Program is specifically designed for the needs of physicians looking to finance their next home.

Who’s eligible:

  • Doctors of Medicine (MD)
  • Doctors of Osteopathic Medicine (DO)

Eligibility requirements:

  • Must have a Union Bank a checking or saving account and enroll in autopay
  • Loan must be for a primary residence
  • Non-refundable $550 fee required

Loan terms:

  • No PMI required for loan-to-value over 80%
  • Mortgages up to $1.5 million with 90% financing
  • Offers jumbo loans up to $5 million
  • Three-, five-, seven- and 10-year adjustable rate mortgages available

Find more info:

For more information, fill out Union Bank’s contact form to have a mortgage consultant reach out to you.

5. US Bank

Another option for physician loans in Colorado is US Bank which also offers conventional fixed-rate loans, FHA loans and VA loans. US Bank provides private financial planning for doctors as well, which can help make sure you’re on the right track with your money and overall financial goals. Financial planning can also make sure you don’t borrow more than is responsible given your current financial situation. For Denver doctor loans or doctor loans in Colorado, here are the details.

Who’s eligible:

  • Doctors of Medicine (MD)
  • Doctors of Osteopathic Medicine (DO)

Eligibility requirements:

  • Must be a recent medical school graduate, resident, or new doctor
  • The mortgage must be for a primary residence, as second homes aren’t eligible

Loan terms:

  • Doesn’t require any PMI
  • Flexible with debt-to-income ratios

Find more info:

For specifics on loan amounts and eligibility you can reach out to our Student Loan Planner contact at U.S. Bank, Jonathan Brozek at 916-601-8782 or [email protected].

Is a Colorado doctor mortgage right for you?

Given that Colorado continues to be a popular housing market, having any advantage to get approved for a loan at the best terms is helpful. If you’re a physician or dentist, you might be able to take advantage of physician home loans in Colorado.

You may get approved for more while putting down less. This can be beneficial because you don’t have to put your homeownership dreams on hold because of lack of a down payment or too much debt.

Additionally, if you still have high debt and don’t qualify for a loan or aren’t interested in student loan forgiveness, you can funnel that money toward your debt instead of saving for a hefty down payment. Just make sure the physician home loan aligns with your overall financial plan so you’re not stretching your finances thin or needlessly piling on more debt.

Be sure to check out these top five doctor loans — Colorado-edition — to see where you can find the best rate and mortgage loan for you.

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