First National Bank has an over 150-year history and proudly puts its customers first. They offer many loan options, including physician loans with competitive interest rates, flexible guidelines, and affordable terms.
The FNB Physician loan program helps interns, fellows, and residents buy homes much sooner than possible with traditional financing. With no PMI and low down payment requirements, it’s much easier for physicians fresh out of med school to afford their dream home without student loan debt standing in the way.
Keep reading to learn how First National Bank helps physicians with their mortgage financing needs.
Why Choose First National Bank?
First National Bank is the second largest bank in Pennsylvania and has an A+ rating with the Better Business Bureau (BBB).
FNB is a leader in many of its banking products across seven states. Since its beginnings in 1864, they’ve had multiple mergers and now has over $20 billion in assets.
Its most recent merger was with Howard Bancorp Inc and UB Bancorp.
Key Features: First National Bank Physician Loans
First National Bank physician loans offer opportunities for physicians to secure mortgage loan financing with low down payments and flexible terms.
- Financing: Physicians can borrow 90 to 100% of the cost of a primary residence and up to 80% of a second or vacation home. They don’t require minimum residency requirements, and you can purchase single-family or up to 2-unit homes.
- Loan Maximum: First National Bank offers loan amounts up to $1 million with no down payment and up to $1.5 million with a low down payment.
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First National Bank is unique because they advertise their physician loan products; most banks don’t.
This is because FNB understands the challenges of working in the medical field, from the tiring schedule to the low-income and high student loan debt most med school grads have.
The qualifying requirements for the loan are somewhat flexible since it’s a niche product, but here’s what you can expect.
You’ll need good credit to qualify for a physician’s loan, usually 710+, depending on your other factors.
As we said earlier, you can get by with no down payment if your home is worth $1 million or less, as long as you can afford the payment. Keep in mind, though, without a down payment, it can take a long time to build equity in the home.
If you borrow over $1 million and less than $1.5 million, you’ll need a down payment, usually of up to 10%.
To prove your income, you must have at least 30 days of paystubs and your last two years of W-2s and tax returns. If you just graduated and haven’t started working yet, you may provide an employment contract with a start date within the next 90 days to be considered.
To be eligible for a physician loan at FNB, you must have one of the following degrees or be an intern, resident, or fellow.
How to Apply
First National Bank makes it easy to apply for a physician loan. Here are the steps to make it easy on yourself.
Getting pre-qualified lets you know how much you can afford. You don’t have to provide official documentation at this point. Instead, you tell your FNB loan officer your estimated household income, and current debt to determine if you meet their parameters.
FNB will do a soft credit pull to check your credit, but it won’t affect your credit score or show up unless you formally apply for the loan.
Check Your Credit Report
Before applying for a physician’s loan with FNB, be sure to check your credit. Everyone gets free weekly access, so there’s no harm in checking.
Look at your credit report for inaccuracies or mistakes you made that you should correct before applying. For example, if you fell behind on any payments or your student loan debt isn’t up-to-date, fix the issue yourself or with the credit bureau to ensure FNB gets an accurate picture of your financial life.
When you’re ready to move forward, you can complete a loan application with First National Bank to get pre-approved.
The loan application asks for information about you personally, such as your Social Security number, birth date, income, debts, and assets. It also asks questions about the property you intend to purchase.
FNB will do a hard credit pull to check your credit for pre-approval. If approved, they’ll write a letter stating how much you can afford. You can use this letter when looking at homes and are ready to make an offer. Sellers like pre-approved buyers and often take offers from them over those that aren’t pre-approved.
Confirmation of Locked Rates
After you find a home and are pre-approved, you can lock in your interest rate. You’ll do this with your loan officer when you feel rates are where you want them to make your loan affordable.
Once you lock in a rate, that’s the rate you get on your loan as long as you close before it expires. You can’t close without a locked rate, so select a lock period that coincides with your contracted closing date.
First National Bank Physician Loan Alternatives
First National Bank offers a great physician loan program, but there are alternatives to consider.
1. Huntington Bank Physician Loan
Huntington Bank offers a physician loan for primary residences only but for purchases and refinances. They offer loans up to $2 million, but only for attending physicians.
Physicians still in training can borrow up to $1.25 million. If you borrow $1 million, a down payment isn’t required; $1.25 million requires a 5% down payment, and $2 million requires a 10% down payment.
You’ll need at least a 700 credit score to apply.
2. Wells Fargo Physician Loan
Wells Fargo doesn’t offer a physician loan, but medical professionals can take advantage of the Wells Fargo Jumbo loan. However, this loan doesn’t have the same benefits as most physician loans.
The 700+ credit score requirements are the same, but the Wells Fargo jumbo loan requires a down payment, and some borrowers may have to pay PMI. They also require a strict debt-to-income ratio of 43%, which may include full student debt payments.
3. Citizens Bank Physician Loan
Citizens Bank offers a physician loan for doctors and dentists for purchases and refinances.
They offer low and no down payment options, with a 5% down payment as high as they require, and they never charge mortgage insurance.
Borrowers can choose from a fixed or adjustable-rate loan. The program is open to MDs, DOs, DDSs, and DMDs who completed their residency in the last ten years, all the way up to current fellows and interns.
4. UMB Bank Physician Loan
UMB offers a flexible physician loan option for MDs, DOs, DDSs, DMDs, ODs, and PharmaDs. Borrowers can get up to 100% financing on up to $1 million for a primary or secondary residence. You may also apply for financing of up to $2 million with a 10% down payment.
The program is not open to residents, and borrowers can’t use the financing program on new construction homes.
Pros and Cons
Like all loan programs, there are good and bad sides to physician mortgage loans with FNB, including the following.
- You can use the program on a primary or secondary/vacation home, and new construction
- No PMI
- Offers both fixed and adjustable rate options
- No down payment on up to $1 million
- Available for residents and fellows
- Can apply with an employment contract
- A down payment may be required if you borrow more than $1 million
- Not available nationwide
- Open to limited degrees
Frequently Asked Questions
Can you have two physician loans at the same time?
You can have two physician loans simultaneously, but qualifying can be complicated since the payments are so high, and debt-to-income ratio requirements aren’t very forgiving. It also depends on which lender you use because many lenders only offer physician loans on owner-occupied properties.
What types of physicians qualify for physician home loans?
Each lender’s requirements differ for physicians that qualify for physician home loans. Most lenders offer them to MDs and DOs, but as is the case with FNB, many other doctors often qualify as well, including dentists and orthodontists.
How much money can I take out with a physician loan?
Many lenders, including FNB, allow physicians to borrow 100% of the purchase price, depending on the cost. In the case of FNB, physicians can borrow up to $1 million with no down payment and up to $1.5 million with a low down payment.
Is a First National Bank Physician Loan Best for You?
First National Bank offers affordable terms to help interns, fellows, and residents qualify for mortgage financing. As with any loan, be mindful of how much you’re borrowing, especially if you get an adjustable-rate loan.
While a physician loan shouldn’t get you over your head in debt, it can help you achieve your home ownership dreams while starting your career.