Lawyer Mortgage: $0 Down Payment Options for Attorneys

With BigLaw salaries starting in the $200,000 range and only going up from there, it’s no wonder banks are buzzing at the opportunity to build relationships with attorneys as a whole. One way they’re doing this is by offering young legal and medical professionals special home financing that leverages their degree and earning potential.

Whether you work in BigLaw, practice at a small- or mid-size law firm, or serve as a government attorney, your JD degree gives you access to exclusive financing through a lawyer mortgage loan program. Read on to learn more about this low down payment solution.

What is a lawyer mortgage?

Sometimes referred to as a BigLaw mortgage or an attorney mortgage, this home loan program is available to JD borrowers purchasing or refinancing a primary residence. It’s characterized by low down payment options, usually ranging from 0% to 10% for loan amounts that reach into the millions.

But that’s not all a lawyer mortgage loan has to offer. Other benefits include:

• No private mortgage insurance (PMI), potentially saving you thousands of dollars each year.
• Many lenders accept employment contracts as proof of income if you’re starting a new position (typically 60 to 90 days within closing).
• Some lenders exclude student loans from debt-to-income (DTI) calculations or use a modified amount, such as your actual income-driven repayment monthly payment or a percentage of your total outstanding balance.

Banks recognize there are tens of thousands of potential homeowners that graduate from law school every year. Therefore, there’s an ongoing fresh pool of customers that can benefit from this mortgage solution.

6 Top mortgage lenders offering professional loans to lawyers

Lawyers have many options when choosing a professional mortgage loan program. However, mortgage lending eligibility will vary depending on where you live. It'll also depend on your credit score, DTI and other underwriting factors.

We’ve compiled a list of lawyer mortgage loans to help guide your search. Note that lenders are listed alphabetically, and contact information is provided when applicable.

1. Flagstar Bank

Attorneys across the United States can apply for a professional mortgage with Flagstar Bank. It offers loan amounts up to $1 million with no money down, as well as $1.5 million with a 5% down payment.

Note this program is limited to adjustable-rate mortgage (ARM) options. But keep in mind that ARMs come with an initial fixed rate for a set period of time before transitioning to a variable rate.

States available: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

2. First Bank

Attorneys, doctors and dentists in select states can apply for First Bank's professional mortgage loan. Down payment options include 0% down for up to $400,000 or 5% down for up to $1 million.

States available: CA, IL, KS, MO, NE

3. First National Bank of Omaha

First National Bank of Omaha (FNBO) offers both a physician mortgage loan and a professional loan program. While the physician program is a bit more generous, lawyers can take advantage of low down payment options, including 5% down for up to $750,000 or 10% down for up to $1 million.

States available: CO, IA, IL, KS, MO, NE, SD, TX, WI, WY

4. S&T Bank

S&T Bank serves attorneys nationwide by offering home loans for 5% down with no maximum loan limit. However, if you’re looking for a house in Texas or New York, you won’t be eligible for this program.

S&T Bank provides a variety of fixed- and adjustable-rate mortgages, as well as FHA loans and VA loans.

States available: PA, OH, NJ, WV, MD, DE, KY, MI, VA

5. UMB Bank

If you plan to settle down in Arizona, Colorado, Texas or Missouri, UMB Bank provides up to 100% financing for loans up to $1 million via its professional mortgage program. Other down payment options are available, maxing out at $2 million with 10% down.

Note this professional loan can be city-region specific, so you’ll need to directly contact a loan officer for more information about eligibility in your area.

States available: CO, AZ, TX, OK, KS, NE, MO

Contact: Email Andrew Berry

6. U.S. Bank

U.S. Bank offers a physician mortgage loan strictly for medical doctors. However, it provides an alternative low down payment mortgage, called an 80-10-10 loan, that might help attorneys willing to put down 10%, while still avoiding PMI.

With an 80-10-10 loan (sometimes called a piggyback loan), you’ll take on a first mortgage at 80% of the purchase price, a second mortgage at 10%, and provide a down payment of 10%.

States available: AL, AK, AZ, CA, CO, ID, IL, MA, MT, MI, MN, MS, NE, NV, ND, NM, OK, OR, RI, SD, TX, UT, WA, WY, WI

Related: Physician Mortgage Loan Review for Lawyers: Happy Mortgage by Centennial Bank

Is a lawyer mortgage loan right for you?

Lawyer mortgage loans open the door for $0 down payment home financing without the need for PMI. This can be especially beneficial for young associates who don’t have assets or solid income history in place. It can also give you access to loan amounts well above the conventional loan limit (e.g., $647,200 for most counties) without automatically triggering a rate increase.

Although this can be a major perk, a higher loan amount translates to a larger mortgage payment — which can become problematic in multiple ways. There’s the obvious monthly financial hit. But there’s also the impact of what a higher payment could mean in making other future decisions, such as changing jobs or leaving the law profession altogether.

The last thing you want in an already stressful profession that’s known for accompanying mental health issues (e.g. depression, anxiety, risk of suicide, etc.) is forcing yourself to continue along a law career for fear of losing your home.

So, do your due diligence by comparing home buying options and sticking to a realistic mortgage payment that will serve you now and for years down the road.

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