Updated · Mike Certo, NMLS #260555
Arizona Doctor Loan Property and Borrower Restrictions
The Redwood Sequoia Medical Professionals program has clear property and borrower restrictions. Understanding these BEFORE you make an offer prevents the painful situation of a deal falling apart at underwriting because the property or entity doesn't meet program rules.
Primary residence only
Redwood Sequoia financing is for primary residence purchases ONLY. The following are NOT eligible under this program:
- Second homes / vacation homes
- Investment property / rental property
- Property where borrower will not personally occupy
Borrower must occupy the property as primary residence within 60 days of closing.
1-unit only
The program finances 1-unit primary residences. NOT eligible:
- 2-unit, 3-unit, or 4-unit properties (even if borrower occupies one unit)
- Manufactured / mobile homes
- Modular homes that don't meet standard build requirements
- Condo-hotels (condominium units in a property that operates as a hotel)
- Co-ops
- Land-only or vacant lots
- Mixed-use properties (residential + commercial in same building)
Standard condominium units (residential-only) ARE eligible, subject to standard condo HOA review.
Trust and entity ownership rules
Title can be held in specific entity types:
Eligible entity closings
- Inter Vivos Revocable Trust (e.g., living trust) — borrower is trust beneficiary; trust language must be standard revocable trust
- Illinois Land Trust — specific Illinois trust structure (less common in AZ but allowed)
NOT eligible entity closings
If you currently own property in an LLC, corporation, or partnership and want to refinance into a Redwood Sequoia mortgage, title must transfer to individual or eligible trust BEFORE closing. Talk to your CPA/attorney about implications of title transfer.
Borrower restrictions
- SSN required: All borrowers must have a valid US Social Security Number. ITIN borrowers not eligible under this program.
- Eligible credential: Borrower must hold one of the eligible medical credentials (see canonical program specs)
- Primary borrower occupancy: If multiple borrowers, at least one must occupy the property as primary residence
- US citizen, permanent resident, or qualifying visa: Standard mortgage borrower eligibility
Property condition
- Property must be in lender-acceptable condition at appraisal
- No active major repair issues (foundation, roof, structural)
- No active building code violations
- Standard residential systems must function (plumbing, electrical, HVAC)
- If property requires major repair, may need 203(k) renovation loan or different product
Condo-specific considerations
Standard condominium projects are eligible, subject to:
- Lender condo questionnaire review (HOA financials, reserves, owner-occupancy ratio)
- Litigation review (active HOA litigation may disqualify)
- Insurance certification
- Project type (warrantable vs non-warrantable)
Condo-hotels and projects with high transient occupancy are NOT eligible.
When another product may fit
If your scenario doesn't fit Redwood Sequoia, alternatives may include:
- Multi-unit property: Standard FHA/VA/conventional with primary residence in one unit
- Investment property: DSCR loan, conventional investor financing
- LLC closing: Commercial loan, DSCR financing
- Non-warrantable condo: Non-warrantable condo lender; portfolio loan
- Excluded credential (NP, PA, RN, OD, chiropractor): Standard FHA/VA/conventional/jumbo or alt-doc programs
Next step
20-minute call. Bring property type, target purchase scenario, and entity preference. We confirm fit or route to an alternative product.
Related
FAQ
Can I close in an LLC?
No — Redwood Sequoia does NOT allow LLC ownership. Title must be in individual name or eligible trust. Talk to your CPA/attorney about title structure if you currently own in LLC.
Can I buy a 2-unit and rent the other unit out?
Not under Redwood Sequoia — this program is 1-unit primary residence only. Standard FHA/conventional may allow 2-4 unit owner-occupied purchases.
Can I buy a vacation home with this program?
No — primary residence only. Vacation/second homes use different financing products.
Can I close in a living trust?
Yes — Inter Vivos Revocable Trusts (standard living trusts) are eligible. Trust documentation reviewed before closing.