First Community Mortgage Review: Is It the Right Choice for Physicians?

Editor's note: As of October 2023, First Community Mortgage no longer offers their physician mortgage. Check out other physician mortgage programs here.

Those with degrees in healthcare fields often have a lot of student loan debt, which can limit conventional mortgage options. If you’re looking for homeownership, though, you have some options for getting special financing.

Some financial institutions, like First Community Mortgage, offer qualified borrowers access to special home loan programs. An example of such a program is a physician mortgage loan, which has more flexible underwriting and credit history requirements. Here’s what you need to know.

First Community Mortgage
Minimum down payment	0% on up to $1.25 million
Residents or fellows allowed	Not disclosed
Maximum loan amount	$1.5 million
Degrees that qualify	DVM, DPM and PharmD
Eligible states	AL, AZ, CA, CO, CT, DC, DE, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY

First Community Mortgage physician mortgage loan details 

First Community Mortgage was founded in 2002 and is based in Murfreesboro, Tennessee. However, this mortgage lender is licensed in 46 states, so they have a wide variety of programs across the country.

First Community Mortgage offers physician mortgage loans to those who have DVM, DPM or PharmD degrees.

First Community Mortgage physician mortgage loan: Pros and cons 

As a first-time homebuyer looking for real estate right after starting practice, it can be difficult to meet underwriting requirements. This is where doctor loan programs can help. First Community Mortgage has looser eligibility programs than some others, allowing you to get a home mortgage.

Before choosing from loan options, though, it’s important to understand the pros and cons involved. Here are some things to consider when researching the home buying process with First Community Mortgage. 

First Community Mortgage physician mortgage loan pros

This mortgage company focuses mostly on homeownership, so you have different options available. Here are some of the advantages.

Up to 100% financing

First Community Mortgage offers a no down payment option on a home purchase price of up to $1.25 million for qualifying professionals. Additionally, there are low down payment options of 3% and 10% down for those with scores below 700. Finally, you can borrow up to $1.5 million if you put 10% down, making it a feasible option for jumbo loans.

If you’re trying to figure out what your payments and interest rates might be based on down payments, use a physician mortgage loan calculator to run different scenarios, including a variable or fixed interest rate.

Lower credit score requirements

Many mortgage lenders require at least a 700 credit score to qualify for programs. However, when First Community Mortgage pulls your credit report, they’ll be a little more lenient. If you’re willing to make a bigger down payment, you can potentially get a loan with a minimum credit score of 620. Some terms might be subject to change, so talk to a loan officer about what to expect.

Available in a wide variety of states

First Community Mortgage functions in some ways like a national bank. It offers potential homeowners the ability to access its programs in 46 states. There are only a few places where you can’t get a loan from First Community Mortgage.

First Community Mortgage physician mortgage loan cons

When reviewing mortgage loan originators, don’t forget to pay attention to the disadvantages. Here’s what you need to know at First Community.

Small down payments can lead to higher monthly payments

Physician mortgage programs help you get a larger home at more favorable terms than you might see with a conventional loan. However, this can cause problems down the road during repayment. You might have higher monthly payments and feel house-poor. 

A higher interest rate might also be the result of a smaller down payment. Carefully consider whether you can handle the mortgage payment with ease before you choose this type of loan, especially if it’s an adjustable-rate mortgage that might see an increased payment later.

Limited home types

While you can get a large loan amount with First Community Mortgage, you might be limited on your type of home. When getting into your new home, it needs to be a single-family residence or a warrantable condo. First Community also offers refinancing to take advantage of home equity.

Limited degree availability 

While other medical professionals might be able to get access if they work with a loan officer, the stated degrees for the doctor loan program are DVM, DPM and PharmD. However, it might be worth it for dentists and other healthcare workers to ask if they can access the program.

How to apply for a First Community Mortgage physician mortgage loan 

Choose between three and five lenders to compare as you decide where to get your physician home loan. Consider closing costs, disclosures, credit history requirements, underwriting and other terms to determine what will be best for your situation. Don’t forget to think about whether a physician mortgage loan program is the right move. 

If you qualify, a conventional home loan might make more sense, or you can get a government-backed home mortgage, such as an FHA loan, VA loan or USDA loan.

A First Community Mortgage loan officer can help you understand how to move forward, but here are the basic steps.

Step 1: Contact First Community

You can reach out to online banking to get more information.

Be ready with the following information before you reach out:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Purchase price
• Property location 
• Property zip code 
• Degree
• Employment contract
• Proof of medical license

Step 2: Gather necessary documentation 

Every lender requires its own documentation. Your First Community Mortgage loan officer can help you figure out exactly what you need to keep the home buying process moving smoothly. Some common documents you might need include:

• Purchase agreement
• Employment contract
• Pay stubs

• Recent bank statements
• Tax returns
• Driver’s license or other ID
• Other documents, as requested

The more information you have, the faster you’re likely to close.

Step 3: If approved, accept the loan 

Once approved by First Community Mortgage, decide whether to move forward. Review the documents and disclosures to determine whether everything matches what you were told when comparing lenders. If you decide this is the best option, sign the paperwork.

Should you apply for a physician mortgage loan with First Community Mortgage? 

Run the numbers and use a mortgage calculator to see if a physician mortgage loan from First Community makes sense for you. Make sure you understand all the other options, including traditional mortgages and government programs. 

Before moving forward, compare First Community Mortgage to other physician mortgage lenders.

Fill out the form below for more information about getting a loan from First Community Mortgage or other doctor loan programs.