- Different types of medical professionals qualify for this loan.
- Up to $2 million in financing available, with 0% down for up to $1 million in financing.
- No private mortgage insurance (PMI) requirement.
Those who work in the healthcare field often have six-figures of student loan debt which can be concerning if applying for a mortgage. If you’re a doctor, dentist, veterinarian or pharmacist living in the Midwest, there’s a mortgage lender that can assist.
Many banks have taken note of the unique financial situation and needs of doctors. They go beyond just offering online banking, checking accounts, and credit cards by providing a specialized home financing solution called a physician mortgage loan. A lender that works with Midwest physicians and other medical professionals is First Merchants Bank (which acquired Level One Bank).
Read on for Student Loan Planner®’s full First Merchants Bank physician mortgage loan review.
First Merchants Bank physician mortgage details
What mortgage product do you need?
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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
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First Merchants Bank physician mortgage loan: Pros and cons
Accessing a physician mortgage loan can help you access your dream home with potentially no money down. However, there are pros and cons of a First Merchants Bank physician mortgage loan to know.
First Merchants Bank physician mortgage loan pros
Expanded medical professional eligibility
The First Merchants Bank physician mortgage loan expanded eligibility for many different types of medical professionals. This includes doctors, dentists, veterinarians and pharmacists.
There’s also a separate Community One Professional Loan available to other medical professionals such as nurses and physician assistants, teachers, firefighters and police members. This loan offers up to $350,000 with 3% down.
Unlike other physician mortgage lending options that restrict eligibility to doctors or dentists, this unique lending solution offers more broad support to prospective homebuyers.
Additionally, a First Merchants Bank physician mortgage loan has fewer restrictions to contend with. The lender doesn’t have age restrictions for their physician mortgage loan so a wider group of eligible professionals can qualify.
For example, some lenders require that you’re a certain number of years out from training to qualify. But First Merchants Bank has no such requirement. It also tends to be very accepting of different visa types.
If you’re just getting a new job, it can close 90 days before your official start date with an employment contract.
In a competitive market, you want a lender that can work with your interests and help you get a new home ASAP. First Merchants Bank has an efficient closing process that might last a few weeks. That way, you can move fast, if needed.
First Merchants Bank physician mortgage loan cons
The First Merchants Bank physician mortgage loan helps eligible doctors get a loan for up to one million dollars, and no money down. Given the expanded medical professional eligibility, it could be a great option for many healthcare workers. However, this home loan option is only available in several states, including Michigan, Ohio, Indiana, Kentucky and Illinois.
Potential high monthly payments
Being able to borrow up to $2 million can help doctors get a mortgage for their dream home. You might even qualify for a loan at $1 million with no down payment, making it more accessible.
Although these loan amounts might seem beneficial in theory, you run the risk of taking on a mortgage amount that’s too large with unsustainable monthly payments. Calculate the maximum mortgage payment you can afford before accepting the full mortgage loan amount you qualify for.
May pay more in interest
Borrowers taking on a mortgage should be aware of just how much interest your mortgage will cost you. The interest you pay is based on the amount you borrow, plus your interest rate.
There might be fixed interest rates or variable rates through an adjustable-rate mortgage (ARM). Given the high maximum loan and potentially no money down, it’s possible to pay more in interest than you might expect. First Merchants Bank offers 15-year fixed rate and 30-year fixed rate mortgages in addition to 5/6 ARM, 7/6 ARM, and 10/6 ARM.
How to apply for a First Merchants Bank physician loan
If you live in one of the states that qualify and meet the initial profession-based eligibility requirements, you may want to check out a First Merchants Bank physician mortgage loan. Here’s how to get started.
Step 1: Contact a First Merchants Bank representative
To obtain a First Merchants Bank physician mortgage loan, you want to contact the right person who can help you. You can email Joe Saleh.
Step 2: Prepare your paperwork
If you’re a first-time homebuyer, you might be surprised about how much paperwork there is to obtain a mortgage. For these types of mortgage loan programs, with potentially no down payment, lenders will require proof of income and assets.
The lender might also ask for previous tax returns, current pay stubs, medical licenses, and profit and loss statements. Do the prep work and get financial paperwork together to streamline the process. Also, consider checking your credit score and credit report to ensure there aren’t issues.
Step 3: Look over terms and conditions
If you move forward with the mortgage loan and get approved, clearly evaluate the closing costs, total interest, and repayment terms and conditions.
It can be tempting to skim the paperwork, but understanding what you’re getting into is essential. Once you’ve checked everything over and confirmed that everything is sound, submit your application to move toward your home-buying journey.
Should you apply for a physician mortgage with First Merchants Bank?
Taking out a mortgage and buying a home can be an exciting chapter in your life. It can also be costly. That’s why it’s important to review costs and compare lenders.
If you’re interested in a physician mortgage loan — and live in the Midwest — First Merchants Bank is a great option. Before moving forward, compare other physician mortgage programs to find the most competitive offer. Fill out the form below to start.