- MD, DO, DDS, DMD or DVM degrees may qualify for a physician mortgage loan with First National Bank.
- Borrowers must have a minimum credit score of 700.
- There might be no down payment required for some home loans, and up 10% down, based on how much you borrow.
Doctors often have high incomes, but those years of schooling often mean a high amount of student loan debt. Perhaps you can manage your student loan payments but aren’t sure if you can get a home loan.
If you’re concerned about student debt, there are home-buying loan programs for physicians that require little to no down payment and can make homeownership possible.
First National Bank (FNB) is a lender to consider. Let‘s take a look at the physician mortgage program at FNB.
Lowest down payment
0% down for up to $1.25 million.
Maximum loan amount
How they treat student loans
Student loan monthly payments are excluded from underwriting.
Degrees that qualify
MD, DO, DDS, DMD and DVM
DE, FL, GA, MD, OH, PA, NC, SC, TN, VA, WV
First National Bank physician mortgage loan details
Your home is likely to be the biggest purchase you‘ve made to this point. Understanding the terms is important. Here are some of the things you can expect with an FNB physician mortgage loan.
Depending on your situation, you might qualify for a home loan through First National Bank. There might be additional fees, and your down payment varies based on how much you borrow and how far you are from training. Additionally, you might be eligible for refinancing as a physician. Let’s take a look at the pros and cons of using this lender for this home financing option.
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?
First National Bank offers physician mortgage loan products that can help you buy a home in this environment while offering unique advantages to qualified borrowers.
Various types of medical professionals qualify
Different medical professionals qualify as physicians for these loan products, including medical doctors, dentists, podiatrists and veterinarians. The specific degrees that qualify include MD, DO, DDS, DMD and DVM.
It’s important to note that physical therapists and nurse practitioners aren’t eligible for this loan program. However, on a positive note, borrowers with H1B visas and green cards can qualify for a physician mortgage loan with FNB.
Mixed rates and terms
First National Bank offers various types of interest rates — including fixed rates and adjustable rates as well as different repayment terms. Depending on your wealth management approach and priorities, this can help you manage your payments and save money on interest.
With FNB, you can get a 15-year fixed or 30-year fixed physician mortgage loan. This lender also offers hybrid adjustable-rate mortgages (ARMs) including 15-, 10-, 7-, and 5-year ARMs.
When getting an adjustable-rate mortgage, you typically have a set period of fixed interest and later, variable rates that can change over time. Use our physician mortgage loan calculator to help you decide what mortgage payment and other terms will work best for you.
Physicians who want to refinance can do so with FNB. Borrowers can get up to 80% of their available equity in a cash-out refinance. Depending on your situation, this can be a helpful way to get different terms on the home and free up some cash.
No PMI requirement
For most home loans, if you have a down payment amounting to less than 20%, your lender may require Private Mortgage Insurance (PMI). However, with First National Bank there‘s no private mortgage insurance required for doctor loans.
Because a home purchase can be so expensive, it‘s important to understand the drawbacks of using a physician mortgage loan.
You might borrow more than needed
Because the down payment is so low — including $0 down in some cases — you might be tempted to get a larger loan than you can truly afford. A mortgage still adds to your debt load, and it can be easy to become house poor with a physician mortgage loan.
Review your budget for housing costs and understand how your mortgage affects your debt-to-income ratio. Carefully consider your wealth management approach before getting a huge mortgage.
Monthly payments can be difficult to manage
Just because you can get a loan, it doesn‘t mean you can manage its monthly mortgage payments. Borrowing too much can cause problems if you experience unemployment or your income drops.
Don‘t forget other costs of home ownership, including insurance, property taxes, furniture, utility costs, maintenance and repairs.
Credit score minimum
Like many other physician loan programs, you might need a minimum credit score of 700 to qualify for a physician loan. If you have a limited credit history, have poor credit, or missed payments on credit cards or other types of loans, your credit score might not be high enough to qualify.
How to apply for a First National Bank physician mortgage loan
Compare different lenders to determine if FNB is the best physician mortgage loan for your needs. Here‘s how to apply for the FNB mortgage program.
Step 1: Contact First National Bank
To get started buying a new home and getting approved for a physician mortgage loan, start by checking out the online banking at FNB. You can contact loan officer, Josh Feldman.
Have the following information available:
- Phone number
- Loan purpose
- Loan amount
- Property location
- Property zip code
Step 2: Gather necessary documentation
In general, you need documentation to verify your identity and financial details. Your mortgage loan officer can give you a more complete list, but in general you will probably need:
- Executed purchase agreement.
- Pay stubs (recent 30 days).
- Employment letter, if you haven’t started.
- Recent two months of bank statements.
- Prior two years of tax returns.
- Driver’s license or other ID.
- Other documents, as requested.
If you have your documents ready, your application will likely be processed faster.
Step 3: If approved, accept loan
After receiving approval, decide whether to accept the home loan. Understand the total closing costs, terms and conditions and any fees. Once everything‘s sighed, you can prepare to buy your real estate property.
Should you apply for a physician mortgage loan with FNB?
First National Bank offers physician mortgage loans to different doctors and accepts some visas. Depending on the situation, you might be able to forgo the down payment and buy your first home.
However, run the numbers using our calculator to understand how the interest rate will affect total costs and understand your monthly payment. Compare FNB to other physician mortgage lenders and choose the best mortgage solution for you.