Home — Medical — Physician Mortgage for $1M-$3M Homes: What No One Tells You

Physician Mortgage for $1M-$3M Homes: What No One Tells You

The physician mortgage program that worked perfectly for your $480,000 first home requires some navigation at $1.8 million. Not all physician lenders go above $1.5M. Partnership track income is documented differently from W-2. Practice ownership creates self-employment income complexity. The physician who knows these distinctions before starting the mortgage process doesn’t lose the house they want.

Which Physician Lenders Go to $2M+

Physician mortgage programs at the luxury tier: (1) First Western Trust: physician programs up to $2M with favorable terms for high-income professionals. Experienced with complex physician income structures. (2) TD Bank physician program: available in eastern US markets, up to $1.5M–$2M. (3) Regions Bank: southeast and midwest markets, up to $2M. (4) Huntington Bank: midwest and southeast markets. (5) Private banking physician programs: at the $2M+ tier, private banking relationships at JP Morgan, Wells Fargo Private Bank, and similar institutions offer portfolio loan programs that may outperform standardized physician mortgage products. The specialist introduction includes the right lender for your income structure and market.

Partnership Track and Practice Ownership Income

(1) Partnership track physician (W-2 + bonus): straightforward. Document base salary plus signed offer letter for expected bonus. Most physician lenders can use expected bonus income with documentation. (2) New equity partner (K-1 income): K-1 income from a partnership requires 2 years of K-1 history for most conventional lenders. Some physician lenders can use 1 year of K-1 plus a letter from the practice accountant. (3) Practice owner (Schedule C or S-Corp): self-employment income is averaged over 2 years from tax returns. Write-offs that reduce taxable income create DTI challenges. Bank statement programs — qualifying on 12–24 months of business deposits — solve this for established practice owners. (4) Locum tenens / 1099 physician: 2-year average of 1099 income with tax returns. Locum physicians with variable income need specific lender experience.

Above $2M: When Private Banking Beats Physician Mortgage

At loan amounts above $2M, the standardized physician mortgage product is sometimes outperformed by private banking portfolio loans: (1) Private banking relationships at major institutions offer customized loan structures not available in standardized programs. (2) Asset-based lending — qualifying on investment portfolio value rather than income — is available to physicians with substantial investment assets. (3) For the physician partner with significant K-1 income and a large investment portfolio, a private banker who understands both the income and the assets often provides better terms than a physician-specific lender.

Frequently Asked Questions

What is the maximum loan amount on a physician mortgage?

Most physician mortgage programs go to $1.5M-$2M. Above $2M, private banking portfolio loans from JP Morgan, Wells Fargo Private Bank, or specialty lenders often provide better terms.

How does practice ownership affect physician mortgage qualification?

Practice owners are self-employed. Most lenders require 2 years of tax returns and average the income. Write-offs that reduce taxable income create DTI challenges. Bank statement programs qualify on business deposits rather than taxable income.

Can a 1099 locum physician get a luxury home mortgage?

Yes. 1099 physicians use a 2-year average of their 1099 income with tax returns. Lenders experienced with physician income structures handle this regularly.