Flagstar Bank Physician Mortgage Review & Alternatives

Doctors, dentists and other high-income professionals can find it challenging to qualify for conventional loans with large student loan debt and traditional down payment requirements. Fortunately, some lenders offer a specialty homeownership program with your career trajectory in mind called a physician mortgage loan.

Although these programs were originally designed for medical doctors and dentists, Flagstar physician mortgage loans are available to a wide array of professions.

Medical residents, doctors, dentists, optometrists, ophthalmologists and podiatrists can qualify for Flagstar’s physician and professional mortgage. But so can pharmacists, accountants, attorneys, physician assistants, registered nurses, nurse practitioners, clinical nurse specialists, ATP pilots and veterinarians.

Read on for our review on Flagstar physician mortgage loans.

Minimum down payment	0% down for up to $1 million 5% down for up to $1.5 million
Residents allowed	Yes
Maximum loan amount	$1.5 million
How they treat student loans	Uses income-based repayment amount for debt-to-income ratio calculation
Degrees that qualify	MD, DDS, DMD, OD, PharmD, DPM, DO, PA, RN, NP, CPA and DVM. Other professions include clinical nurse specialists, attorneys and ATP pilots.
Eligible states	All 50 states

Flagstar physician mortgage loans: Overview

Flagstar Bank provides consumer, business and commercial products and services with 150 branches in California, Indiana, Michigan, Ohio and Wisconsin. Its mortgage division operates as the sixth largest mortgage originator nationally.

Its strong banking reputation and expansive specialty mortgage program has helped position Flagstar as one of the top physician mortgage lenders across the country. Here’s what you can expect with a Flagstar physician mortgage loan.

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Flagstar Bank physician mortgage program: Pros and cons

A physician mortgage loan can help you get into your next home faster. In many cases, you won’t need to save up for a large down payment or wait years to meet strict conventional underwriting standards.

But buying a home is a long-term investment, so it’s important to understand the pros and cons of purchasing or refinancing with Flagstar physician mortgage loans.

Pros

Wide variety of eligible degrees and professions

Unlike many physician mortgage lenders that limit eligibility to medical doctors and dentists, Flagstar Bank offers a more inclusive home loan program. Qualifying degrees and professions include:

• Medical resident with educational license
• Medical Doctor (MD)
• Doctor of Osteopathy (DO)
• Doctor of Dental Surgery (DDS)
• Doctor of Dental Medicine (DMD)
• Doctor of Optometry (OD)
• Doctor of Ophthalmology (MD)
• Doctor of Podiatric Medicine (DPM)
• Certified Public Accountant (CPA)
• Nurse Practitioner (NP)
• Registered Nurse (RN)
• Physician Assistant (PA)
• Pharmacist (PharmD)
• Veterinarian (DVM)
• Clinical Nurse Specialist
• Attorney
• ATP Pilot

Note that chiropractors and physical therapists aren’t currently eligible for Flagstar physician mortgage loans.

Low down payment options with no PMI

With a Flagstar physician home loan, you can tap into up to 100% financing with no private mortgage insurance (PMI) penalty.

Eligible borrowers can take advantage of its 0% down payment option for up to $1 million in home financing. Alternatively, you can put 5% down to access up to $1.5 million.

Available in all 50 states

Flagstar’s custom home loan program is available in all 50 states for purchasing or refinancing a primary residence. However, condominiums, townhomes and vacation homes aren’t eligible under this program.

Serves borrowers with H-1B visas or green cards

For many, owning a home is part of the traditional American dream. Flagstar Bank serves homebuyers with work visas and green cards to find the right mortgage solution.

Cons

Must be within 10 years of starting your career

Many physician mortgage programs, including Flagstar Bank, require you to have less than 10 years of post-residency training in order to qualify. Therefore, you won’t be eligible if you’re mid-career or retired.

Only offers adjustable-rate mortgages

Flagstar physician mortgage loans only offer adjustable-rate mortgages (ARMs). With an adjustable rate, your interest rate can change periodically. Therefore, your monthly mortgage payment could increase or decrease over time.

So, if you prefer a fixed-rate mortgage, such as a 15-year or 30-year fixed option, Flagstar might not be the best choice for your situation. But keep in mind that ARM products typically have an initial fixed rate period before transitioning to a variable rate.

Use our physician mortgage loan calculator to see which payment and terms might fit your needs.

Higher credit score requirements

To be approved for 5% down, you must have at least a credit score of 700. To be approved for 0% down, you must have at least a credit score of 720.

1099 workers must have adequate income history

If you're a 1099 worker, you need to supply documentation of at least two years of income

How to apply for a Flagstar physician home loan

If you’re interested in moving forward with Flagstar Bank as your physician mortgage provider, here are your next steps.

Step 1: Connect with a loan officer

Flagstar Bank doesn’t have a dedicated space on its website for its physician loan program. Therefore, it’s best to reach out to a loan officer to discuss your mortgage options and eligibility requirements.

Step 2: Gather loan documentation

Flagstar Bank will provide you with a detailed list of financial and personal documents they’ll need from you to apply for a physician mortgage loan. However, you can generally expect to provide the following documents and information:

• Previous tax returns and W2s.
• Pay stubs or an acceptable employment contract.
• Bank statements.
• Driver’s license or other government-issued identification.
• Property information (e.g. purchase price, desired loan amount, type of property, etc.).

By gathering these documents and information ahead of time, you can help fast-track the application process.

Step 3: Pay attention to all details and accept the loan

If you’re approved for the Flagstar Bank physician mortgage loan, make sure you understand all the loan details, including total closing costs and terms and conditions. Always ask questions for clarity.

Once everything is squared away, sign the loan disclosures and get ready to purchase and create your next home.

Should you apply for a physician mortgage with Flagstar Bank?

Flagstar physician mortgage loans offer one of the most inclusive specialty home programs out there. Unlike other physician mortgage programs that are limited to doctors and dentists, eligibility for Flagstar’s program ranges from medical professionals to ATP pilots to accountants and more. It’s also available nationally, so you don’t have to worry about state residency to qualify.

Additionally, Flagstar provides up to 100% financing, which can free up capital to furnish your new home or make immediate renovations.

However, choosing the right mortgage lender is just as important as finding the right home for your family. So, it’s best to compare at least three loan providers, as well as your overall mortgage options.

Quickly compare Flagstar Bank to other physician mortgage lenders or fill out the mortgage form below to learn more about purchasing and refinancing loan options in your area.