- You need a minimum 620 credit score to be eligible for a Fairway Independent Mortgage Co. loan.
- Gift funds can be used for a down payment, as long as you make a 5% contribution from your own funds.
- Only some medical degrees are eligible for this physician loan. Nurses can’t get this type of home mortgage from Fairway.
After finishing your medical degree, there’s a good chance you’ll have a lot of student loans — making it difficult to qualify for a conventional mortgage. However, there are some lenders that offer access to special home loan financing for doctors.
Physician home loans can provide you with an opportunity for home ownership, even though you might not normally qualify for various types of mortgages. One company offering this type of loan is Fairway Independent Mortgage Corporation. Let’s take a look at some of Fairway Independent Mortgage Co.’s requirements for a physician loan so you can decide if it’s right for you.
CT, FL, MA, ME, NH
Lowest down payment
5% for up to $1 million; 10% for up to $1.5 million. Gift funds allowed, but at least 5% of funds must be your own.
Maximum loan amount
How they treat student loans
Excluded from debt-to-income ratio
Requirements to keep low rate
Degrees that qualify
Existing medical doctors, dentists, dental surgeons and vets who are within 10 years of completing residency. Degrees include MD, DO, DDS, DMD, optometry, ophthalmology and podiatry.
Fairway Independent Mortgage Corporation physician mortgage details
When considering a physician loan from Fairway Independent Mortgage Co., there are a few advantages to borrowers who use this program.
No mortgage insurance
A big expense associated with a home loan is the additional private mortgage insurance (PMI) with a down payment that’s less than 20% of the home price. However, medical professionals might have access to a loan without worrying about mortgage insurance when they use Fairway. This lender doesn’t charge monthly premiums.
As little as six months of reserves required
The physician loan program at Fairway requires six months of reserves to qualify. Additionally, you can use gift funds for a down payment if you’re a doctor not too far out from your medical residency or if you’re a medical resident. This makes it a little easier to qualify for a larger home loan than you might otherwise.
Obtain a mortgage before starting your medical residency or job
Some mortgage lenders won’t let you get a loan before you have a job, but you can use your employment contract to secure physician loan options with Fairway Independent Mortgage Co. As long as you’re a newly licensed medical student ready to start a residency or employment within 60 days of closing, you can potentially qualify for physician loan products at Fairway Independent Mortgage Co.
Before moving forward with one of these mortgage loans, consider the drawbacks. Here’s what physician home buyers need to know before committing.
Monthly mortgage payments could be too large
Even though you might qualify for a loan amount of up to $2 million with Fairway Independent Mortgage Co., it doesn’t mean that it’s the right choice for you. A small down payment, plus a large mortgage, can lead to regular payments that might strain your budget.
If you’re in medical residency, your future employment options and pay are a bit uncertain, which could make your home mortgage unaffordable.
You can use one of the many mortgage calculators available to get a feel for what your monthly mortgage payment might be, and whether you can afford it.
Down payment required
Even though gift funds can be used to help you qualify for your physician loan, you still need to contribute at least 5% of your own money. If you don’t have that money saved up, you might not be able to get the loan.
Additionally, you might not get the best interest rate without putting down a larger down payment. Keep in mind that you’ll also need to save up for closing costs and other potential fees.
What mortgage product do you need?
Your Occupation As Of September 2023
Are You Currently Working With a Realtor?
Home Price Range
Preferred Down Payment
Stage You're At in the Home Buying Process
When Do You Want a Mortgage Approval?
How Many Banks Would You Like Quotes From?
Any Bankruptcies or Short Sales?
State Where You Plan to Purchase
Metro Area Where You Plan to Purchase
Would You Like to Add Any Additional Details?
How to apply for a Fairway Independent Mortgage Co. loan
If you decide to apply for a physician loan through Fairway Independent Mortgage Co., there are some steps you need to follow.
Step 1: Learn about your options
Find out what your options are, from fixed-rate to adjustable-rate mortgage loans to other choices.
After connecting with a Fairway loan officer, you can get more information about how to qualify and what loan programs are available for you.
Step 2: Gather your documentation
Some of the information you’ll need as you apply for a physician loan includes:
- Whether you plan to refinance or purchase.
- Purchase price and desired loan amount.
- Your potential down payment, including gift funds.
- Type of residence, since some homeowners won’t be eligible.
- Location of the property.
- Estimated credit score.
- Stage of your career (medical resident, practicing medical professional, under an employment contract, etc.).
- Financial statements and information.
- Tax returns.
- Documentation that you have a medical degree and license.
- Identifying documentation.
You might also need other documentation, so ask your loan officer for the needed information. This is especially true if you’re self-employed. You might need additional documentation when you have your own practice.
Step 3: Apply for the physician loan
If you decide that a loan from Fairway Independent Mortgage Corporation makes sense, your next step is to complete a loan application and finish the process. You’ll need to sign the disclosures and documents and meet other conditions, such as getting homeowners insurance.
Once that’s done, an underwriter will double-check the information and complete the purchase.
Should you apply for a physician loan with Fairway Independent Mortgage Co.?
Although some medical professionals like the idea of a physician loan, it’s not the only option. Check to see if you qualify for an FHA or USDA loan.
You should also compare other physician loan options to see if one of them better serves your needs. Carefully consider what works for you and make the choice most likely to work for your immediate and long-term needs.