Physician loans help doctors get a mortgage soon after med school. The loans can be as high as $2 million, and Fifth Third Bank offers favorable terms for doctors. Here’s everything you must know about the Fifth Third Bank physician loan.
About Fifth Third Bank Physician Loans
The Fifth Third Bank physician loan program helps new and established doctors receive attractive financing to purchase or refinance a home. The program is available only on primary residences and single-family houses or condos.
Like most physician loan programs, Fifth Third Bank excludes student loan debt from the debt-to-income ratio to make qualifying fellows, residents, and doctors easier.
There are several factors to consider when comparing the Fifth Third Bank Physician loan program.
Doctor Programs
Lenders with physician loan programs open it up to specific doctors. At Fifth Third, the following doctors are eligible for the program:
- MDs
- DOs
- DMDs
- DDSs
- DPMs
This includes residents and fellows in training, as well as established doctors.
Locations
Fifth Third Bank currently offers physician loans in the following states, but it’s subject to change.
- Florida
- Georgia
- Illinois
- Indiana
- Kentucky
- Michigan
- North Carolina
- Ohio
- South Carolina
- Tennessee
- West Virginia
Credit Score Requirements
Fifth Third Bank prefers credit scores over 700, like most lenders offering physician mortgage loans. However, they are flexible when looking at creditworthiness. They often look at the big picture, determining if you’re a good candidate. They recognize that med school graduates often have credit challenges, especially with the large amount of student loan debt they carry.
Down Payment
Physician loans are attractive because they often don’t require a large down payment, if any, and Fifth Third Bank is no exception.
Doctors can borrow up to 100% on loans up to $750,000 and higher loan amounts with a small down payment.
Even though Fifth Third Bank doesn’t require a down payment, they don’t charge PMI on any loans, making the loan payments more affordable.
Loan Amounts
The maximum loan amounts you can borrow vary depending if you are a new or established doctor. For example, new doctors can borrow up to $1 million, and established doctors can borrow up to $2 million.
Loan Types
Physicians can choose from a fixed or adjustable-rate loan for physician loans at Fifth Third Bank. Fixed mortgage loans are good for doctors who buy a home they’ll stay in for the long term, and ARMs may be better for doctors who think they’ll move in a few years.
Interest Rates
The interest rates offered to doctors at Fifth Third Bank vary. They typically aren’t the lowest rates compared to other loans because of the high risk.
Fifth Third Bank overlooks a medical professional’s student loans and requires a low down payment to secure the loan. Therefore, the interest rates may be slightly higher than you’d find on other loan types.
New vs. Established Physician Programs
Fifth Third Bank is one of the few lenders that offer physician loans to established physicians. Most programs are only for new doctors.
Here’s how they differ.
- New doctors – The new doctor loan program is for residents, fellows, and interns who already started their position or have a contract to start within 90 days. The program is also for doctors who completed their residency within the last year and now work for a medical group or hospital. New doctors can borrow up to $750,000 with no down payment or up to $1 million with 10% down on the home.
- Established doctors – The established doctor program is for licensed medical professionals who have worked as doctors in a medical practice or hospital for at least one year. Established doctors can borrow up to $750,000 with no down payment or up to $2 million with 10% down on the home.
DTI
Fifth Third Bank evaluates a doctor’s debt-to-income ratio but has more relaxed guidelines than conventional loan lenders. First, Fifth Third Bank excludes student loan debt from the DTI. They also consider future earning opportunities, especially for new doctors who will quickly work their way up the ladder.
Applying for a Physician Mortgage Loan With Fifth Third Bank
Applying for a physician mortgage loan with Fifth Third Bank is simple, using these steps.
Complete Your Application
You can complete an application online or over the phone. To complete the application, you’ll need information including:
- Full name
- Birthdate
- Social Security number
- Loan purpose (purchase or refinance)
- Loan amount
- Property type
- Property Location
- Position/Degree
- Income
- Current assets
- Current liabilities (with and without student loans)
Speak With a Mortgage Loan Originator
After completing the application, you’ll speak with a mortgage loan originator to help determine your eligibility, including the term, loan amount, and rate type (fixed or adjustable).
Submit Documentation
If the loan originator determines you’re a good candidate for the loan, you’ll provide the following documentation:
- Paystubs or employment contract if you haven’t started yet
- Degree
- Medical license
- Tax returns
- Purchase contract or current mortgage statement for refinance.
Discover The Best Lenders Answer just a few questions about your career, where you're buying, and how much you want to borrow. Our service will then show you the exact programs you're eligible for from vetted physician loan specialists who will guide you through every step of the process – obligation-free!
Pros and Cons
Physician loans have pros and cons that you should consider before applying for one.
Pros:
- Low down payment with no PMI
- Excludes student loan debt from the DTI
- Open to several types of medical professionals
Cons:
- Only available in certain states
- It’s easy to borrow more than you can afford or need
- Fifth Third Bank requires somewhat high credit scores
Fifth Third Bank Physician Loan Alternatives
There are many options for physician mortgage loans besides the program Fifth Third Bank offers. Here are a few other popular options.
Cadence Bank
Cadence Bank offers physician mortgage loans for medical professionals in many areas, including doctors, dentists, pharmacists, ophthalmologists, optometrists, and nurse anesthetists. If you work in one of those professions, you may qualify for a loan for up to $1.5 million with little to no down payment.
Cadence Bank offers fixed and adjustable-rate loans with no PMI. However, the loans are only available on owner-occupied properties.
UMB Bank
UMB Bank offers a physician loan program to fellows and physicians. It’s not open to residents. However, the program is available to various doctors, including MDs, DOs, ODs, DDSs, and PharmaDs.
Physicians can borrow up to $1 million on an owner-occupied or second home with no down payment. If you have at least 10% to put down, you can borrow up to $2 million.
UMB Bank offers first and adjustable-rate loans, and you can close the loan up to 90 days before you start a position as long as you have an employment contract.
Citizen’s Bank
Citizens Bank offers physician loans for physicians within the first ten years of their career with down payments between 5% to 10%. The program is open to MDs, DOs, DDSs, and DMDs. Doctors can close on their loans up to 90 days before they start a position with an employment contract. The max loan amount they offer is $1.5 million, and they offer fixed and adjustable rate loans, none of which require PMI.
Frequently Asked Questions
Fifth Third Bank offers physicians many opportunities to secure financing. Here are some common questions people ask about their program.
Is Fifth Third Bank a Reputable Loan Provider?
Fifth Third Bank has an A+ rating with the Better Business Bureau. They offer a large number of loan programs, including physician loans, and make it easy for borrowers to apply online, over the phone, or in person.
Can I Refinance My Physician’s Loan?
You can refinance your physician’s loan whenever you want. There isn’t a prepayment penalty. However, it may be hard to qualify for the high loan amount unless you apply for another physician loan.
Are Practice Loans Available Through Fifth Third Bank?
Fifth Third Bank doesn’t offer practice loans; however, they offer small business loans, which you can use for the same purpose. The SBA loans are up to $5 million and can be used to build or expand a building, buy new equipment, or refinance existing debt.
How Many Times Can I Get a Physician Mortgage Loan at Fifth Third Bank?
Fifth Third doesn’t have a limit on how many times you can get a physician loan. However, they may limit what you can get based on your income, debts, and credit score.
Do Physician Loans With Fifth Third Bank Have PMI?
Fifth Third does not charge PMI on their physician loans, even without a down payment.
