- Medical professionals in select states can use the First Federal Lakewood physician mortgage loan for up to 100% home financing with no private mortgage insurance.
- Qualifying degree designations include MD, DO, DDS, DMD, DVM, DPM and OD.
- Residents and new physicians can close on a home up to six months (or more) prior to their start date with proof of employment contract.
The First Federal Lakewood physician mortgage loan is available to medical doctors, residents, dentists, veterinarians, podiatrists, ophthalmologists and optometrists in eligible states. This program offers up to 100% financing for loan amounts up to $1 million, along with flexible underwriting guidelines that make qualifying for a mortgage easier than conventional lending.
Read on to learn about the First Federal Lakewood physician mortgage loan.
First Federal Lakewood physician mortgage details
First Federal Lakewood is a community bank headquartered in Ohio. However, its physician mortgage loan program extends to eligible borrowers in Florida, Illinois, Indiana, Kentucky, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
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First Federal Lakewood physician mortgage loan: Pros and cons
As more lenders expand their physician mortgage programs to include more professions and more incentives, it’s important to understand the various pros and cons when considering the First Federal Lakewood physician mortgage loan.
First Federal Lakewood physician mortgage loan pros
Low down payment options
First Federal Lakewood offers up to 100% financing depending on the desired loan amount. Down payment options include:
- 0% down for up to $1 million.
- 5% down for up to $1.25 million.
- 10% down for up to $1.5 million.
Note that exceptions can be made on a case-by-case basis for loan amounts above $1.5 million.
Ability to close up to six months (or more) prior to start date
Most physician mortgage programs allow residents and new physicians the option to close on a new home up to 60 or 90 days before starting their new position. But the First Federal Lakewood physician mortgage loan allows borrowers to close up to six months (or more in some cases) prior to their employment contract start date.
Variety of loan terms to choose from
With First Federal Lakewood, eligible borrowers can choose a fixed-rate or adjustable-rate mortgage (ARM) product that fits their overall goals. Its physician loan program comes with options for a 30-year fixed mortgage, as well as a 10/6 ARM, 7/6 ARM, 5/6 ARM.
Serves a wide range of visa holders
First Federal Lakewood works with borrowers that might have additional home buying obstacles due to their citizenship status. It serves medical professionals with the following visa types:
- E-1, E-2, E-3
- H-1B, H-1B1, H-1B2, H-1B3
- L-1A, L-1B
- O-1, O-2
Compared to most doctor mortgage programs, First Federal Lakewood has more extensive visa capability.
First Federal Lakewood physician mortgage loan cons
Not available nationwide
Many physician mortgage programs are limited by state or region, however, some programs are nationwide. Unfortunately, the First Federal Lakewood physician mortgage loan is restricted to borrowers in Florida, Illinois, Indiana, Kentucky, Maryland, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia.
Limited to primary residences
Physician mortgage programs are designed for purchasing or refinancing a primary residence. However, some programs allow for additional property types, such as vacation homes or two-unit properties, that allow you to househack one unit while living in the other.
That being said, First Federal Lakewood doesn’t offer physician loans for multiple-unit properties or vacation homes. So, you’ll need to explore other loan options if you want to househack your mortgage through rental income.
How to apply for a First Federal Lakewood physician mortgage loan
First Federal Lakewood provides a great low down payment solution for medical professionals living in eligible states. If you think you might qualify, it’s worth reaching out to the lender for additional guidance with their mortgage application process. However, here are some basic steps to move you along in the process.
Step 1: Get in touch with a First Federal Lakewood representative
Physician mortgage programs can be very beneficial to potential homeowners, but they aren’t often advertised online. Therefore, it’s best to contact a loan officer directly to learn about specific eligibility requirements, such as the minimum credit score, DTI requirement and other financial factors that might affect your application.
Step 2: Respond to any requests for documentation
The loan officer with First Federal Lakewood will provide you with a detailed list of any information or documentation needed to move forward with your mortgage application.
However, having some basic information on hand can help guide your discussions in terms of which mortgage option will be right for your situation. Be ready to provide details about the property you might be interested in, as well as information about the loan amount you desire and potential funds for a down payment (if applicable).
Generally, you can expect to provide financial documentation, such as recent tax returns, W-2s, an employment contract and bank statements.
Each lender will require different documentation depending on your situation (e.g., self-employed physician or new resident). So, it’s important that you be ready to provide various documentation in a timely manner to help speed the process along.
Step 3: Accept the loan terms (if approved)
If you’re ultimately approved for a First Federal Lakewood physician mortgage loan, review all loan terms and conditions before signing for the loan. This includes going over closing costs and gaining clarity on your monthly mortgage payment and how your interest rate will work if you choose an adjustable rate.
Should you apply for a physician mortgage with First Federal Lakewood?
If you plan to purchase a home in an eligible state (e.g., FL, IL, IN, KY, MD, MI, NC, OH, PA, SC, TN, VA and WV) and hold a qualifying degree in the medical field, then a physician home loan with First Federal Lakewood can open the door to 100% financing with no PMI.
This program can be especially beneficial for residents and new physicians who haven’t started their new position yet. An employment contract can be used as proof of income well-beyond most 60- to 90-day physician mortgage eligibility windows. Plus, your student loan payments might be excluded from your DTI, allowing you to qualify for a higher loan amount than a conventional mortgage.
But you might also be eligible for other low down payment solutions, such as a VA loan. So, it’s best to explore all of your mortgage options and compare several physician mortgage lenders to find the right fit.
If you want to skip some of the legwork, fill out the form below to receive quotes for your next purchase or refinance.