4 min read
A Lack of Savings Won’t Stop You from a Physician Mortgage
Let’s face it, a medical degree is expensive. In fact, According to the Department of Education, the cost of medical school combined with an undergraduate degree can run between $235,000 and $500,000. Its no surprise that many young doctors enter practice with little more to show for their years of hard work than their medical license and some boxes of macaroni & cheese! For most professionals, a mortgage is unattainable without a 20% down payment, plain and simple. But doctors are different—earning potential and a reputation for quick repayment work in your favor. Because savings are lean (at best), the enticement of a mortgage without a down payment may be especially attractive.
Even if you aren’t specifically looking to obtain a loan with no down payment, shopping around for lenders who specialize in physician mortgages will allow you to choose a bank and terms which suit your specific financial needs. By finding a lender who can help you through the ins and outs of a physician mortgage, you can become fully informed in the various options your career opens up, and reap the rewards you have earned through years of hard work in medical school.
It can be daunting to find the right mortgage lender, much less one who specializes in helping physicians, who have unique finances. We introduce a handful of lenders who offer preferential terms to doctors, rewarding them for their outstanding financial reputation. Follow our series of articles showcasing some of the benefits these institutions offer medical professions.
Established in 1864 in Greenville, Pennsylvania, First National Bank of Pennsylvania has grown from a bank into a complete financial services holding company. By spending much of the early 2000’s making acquisitions, it has grown into the second largest bank based in Pennsylvania, encompassing 6 states, and having nearly 375 offices. In addition, First National Bank boasts of multiple awards, including a 2018 Forbes inclusion of “America’s 100 Best Banks,” Top Employer for 202, and a national recognition, earning the President’s “E” Award for Export Service.
Why First National Bank of PA Physician Mortgage Program is different:
Minimum Credit Score
Loan Amounts For Residents & Fellows
Loan Amounts For Practicing Physicians
- 95% CLTV – PMI Required for construction loans
- Doctors in practice 10 years or more are limited to 89.99%
- Construction loans for primary residences only
- Fixed- and adjustable-rate options are available
- No PMI is required for purchae or refinance
- Loans under $500,000 may be rewarded with no title insurance
- No credit score / LTV fee for credit scores 740 or higher
- Maximum debt-to-income (DTI) Ratio: 43%
- Title insurance is not required on loan amount $500,000 or less
First National Bank of Pennsylvania offers a clear and convincing set of benefits for physicians and dentists looking for more regional-style bank with a well-trained team of loan advisors. Check out the First National Bank website to learn more about their Physician Mortgage Program. To ensure you are considering a wide variety of lenders, review the list of other financial institutions in our article list.