Mortgages for Dental & Wellness Professionals

Yes, and the key is which payment number the lender uses for DTI. Under Fannie Mae B3-6-05, the actual monthly payment from your loan servicer’s statement counts in DTI — not 1% of the balance, not a standard-amortization estimate. If you’re on IBR/SAVE/PAYE, that actual payment may be a few hundred dollars instead of $3,000+. This single rule routinely swings $400K-$600K in qualifying loan amount for new-grad dentists. We document it correctly the first time.

Under Fannie Mae Selling Guide B3-3.4-02, S-corp distributions count as qualifying income when supported by a two-year history. We pull Form 1120-S, Schedule K-1, and your personal 1040, add the W-2 salary plus the distribution income, and qualify you on the total. The lender reviews the entity’s overall financial health (retained earnings, debt position) to confirm distributions are sustainable. With two years of consistent history, this is standard practice — not Non-QM, not asset-depletion, just done correctly.

Fannie Mae allows specific add-backs to Schedule C net profit for qualifying-income calculation: depreciation (Line 13), depletion (Line 12), amortization (where reported), and business-use-of-home expense (when documented separately on Form 8829). For dental and chiropractic practices with significant equipment depreciation, these add-backs are usually large — often $30K–$80K per year. Generalist lenders skip the add-backs and qualify you on the lower net-profit number. We don’t.

Timing matters. The buy-in note (often $200K–$800K) becomes a debt obligation in your DTI. If the buy-in is being paid from your share of partnership distributions, the lender will treat the note payment as monthly debt. Cleaner option: close your personal mortgage before the partnership buy-in if the practice income won’t be needed for qualification, or after the buy-in is fully integrated and a year of K-1 history establishes the new income level. We coordinate with your practice broker and CPA to sequence it.

Yes, but the underwriting tracks are separate. SBA 7(a) or 504 finances practice acquisitions; conventional and Non-QM finance personal residences. If both are happening in the same 12-month window, the SBA loan’s monthly debt service counts in your personal DTI. We pre-model both scenarios with the SBA lender and the personal mortgage lender together, so neither blows up the other’s qualification.

This is common with chiropractic, acupuncture, IV-therapy, and aesthetic-medicine cash-pay practices. The Non-QM bank-statement program qualifies on 12 or 24 months of personal or business deposits instead of tax returns. The lender does an expense-ratio adjustment (typically 50%–75% of deposits count as qualifying income, depending on the program), but the resulting income number usually beats the under-told Schedule C net-profit figure substantially.

Depends on three things: (1) Do you have two years of associate W-2 plus the bonus/production share that needs to be averaged? (2) Will your solo practice income be documentable from day one or will there be a startup year? (3) Is the home purchase contingent on the solo-practice income? If you’re buying based on associate income, close before transitioning. If you need solo-practice income to qualify, wait until you have two years of solo P&L or use a Non-QM bank-statement program once deposits are established.

Conventional Fannie Mae and Freddie Mac (when S-corp distributions plus W-2 hit the qualifying number, often with proper student-loan IDR treatment), Non-QM bank-statement (the most common path for cash-pay wellness practices and aggressive-deduction Schedule C filers), Non-QM 1099-only (for associates with bonus income), Asset-Depletion (for mature practice owners with portfolio assets), Jumbo (for purchase price over the conforming limit), Physician-loan programs (extends to dentists at many lenders with low/zero down and IDR-friendly DTI). We pick the program after we read your file, not before.