IBERIABANK Physician Loan Review: 0% Down for Creditworthy Borrowers

Editor's note: Following its merger with First Horizon, IBERIABANK has discontinued its physician mortgage loan program. If you're a medical professional looking for a doctor mortgage in your area, visit our updated page to view the best physician mortgage loans by state.

Medical professionals, like doctors, often have a lot of student loan debt when they finish school. As a result, they might feel as though between the student loan monthly payments and the potential mortgage payments homeownership is out of reach.

IBERIABANK offers a mortgage program aimed at physicians. It has lower documentation requirements and other flexible terms.

IBERIABANK physician mortgage loan details

It’s important to note that IBERIABANK merged with First Horizon Bank, so the programs available are actually under First Horizon moving forward.

A doctor mortgage loan is different from a conventional loan in that you can usually get more flexible requirements for a down payment and you might not need to pay private mortgage insurance (PMI). So, even if you don’t meet some of the conventional requirements, you might still be eligible for a home purchase.

IBERIABANK physician mortgage loan: Pros and cons

Borrowers using IBERIABANK can access different loan products aimed at medical doctors. Here are some of the advantages and disadvantages of doctor home loans from this lender.

IBERIABANK physician mortgage loan pros

With First Horizon Bank, you can access doctor loans from a bank that’s a member-FDIC as well as one that offers competitive interest rates.

Up to 100% financing

You can get up to 100% financing on mortgages with IBERIABANK. You can only borrow up to $1.5 million to still be eligible for no down payment.

Different types of loans

IBERIABANK/First Horizon Bank offers different loan options, including fixed-rate and adjustable-rate mortgages with different term lengths. You might also have the option to get a new construction home loan so you can build your dream home.

Use a physician mortgage loan calculator to run the numbers. Figure out how much you can afford and what terms are likely to make the most sense for you in the future.

No PMI

On top of a low down payment option, it’s also possible to avoid paying private mortgage insurance (PMI) with the IBERIABANK doctor loan program. Generally, with a conventional loan, you have to pay PMI when you have a small down payment, but you’re not required to pay it with a doctor loan.

IBERIABANK physician mortgage loan cons

While there are advantages to IBERIABANK’s offering, there are also some drawbacks. Here’s what to consider.

Small down payments can lead to higher monthly payments

Because doctor mortgages allow you to get a bigger home with a lower down payment, you might end up with higher monthly payments. Student loans might be excluded from your debt-to-income ratio, but they still have to be paid. You could end up house poor and struggling to make all your monthly payments.

Limited service area

IBERIABANK has a relatively limited service area. You might be able to get a loan in an east coast state like New York, but there isn’t a lot of availability in the midwest and the west. Depending on where you live, you might not get access to the program you need.

Credit score minimum

The minimum credit score for the loan program at IBERIABANK is relatively high. The bank recommends having a score of between 670. You can also get access to programs like VA loans or FHA loans if you need more flexible credit requirements.

How to apply for an IBERIABANK physician mortgage loan 

Review three to five lenders before deciding on one for your doctor mortgage loan. Focus on whether the bank offers items that are important to you, such as a refinance option, low interest rates and other perks.

If you decide IBERIABANK is best for your needs, you can reach out to get started on an application.

Step 1: Contact IBERIABANK

You need to reach out to the First Horizon Bank Private Client Services Relationship Manager to see what’s available to you.

Before you make your call, be ready with the following information:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Property location
• Property zip code
• Degree type
• Employment contract

Step 2: Gather necessary documentation

You need to document your information and income, in order to proceed. Your mortgage loan officer can help you know what you need. Here are some of the documents you might need to complete your application:

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

You can close on your home faster, no matter where you live, when you have the necessary information. A good lender that’s a member of the NMLS can help you find the right loan. Your homeownership journey can be quicker when you’re prepared.

Step 3: If approved, accept the loan

If IBERIABANK/First Horizon Bank approves you, you can decide what to do next. Review the disclosures and confirm the closing costs. Once you finish the paperwork and confirm it matches your expectations, you can plan to take possession of your new real estate.

Should you apply for a physician mortgage loan with IBERIABANK?

Depending on your need, the physician mortgage loan programs from IBERIABANK/First Horizon Bank can make sense. Consider your specialty, whether you’re a medical doctor, dentist, optometrist or some other medical professional. Find out if your degree is covered.

Also, double-check that you’re truly ready to buy a home. Compare IBERIABANK to other physician mortgage lenders. You can also fill out the form below for more information.