Becoming a physician or a professional in the medical field is a path you probably wouldn’t trade for the world, but you know better than anyone the commitment and sacrifice it took to accomplish your dream: sleepless nights studying or on rotation; delaying the start of a family or just having a “normal” routine; the weight of student loans affecting every financial decision you make.
Now that your career has started, new doors are opening, including those around buying the home you deserve. If you haven’t yet, you may soon hear about special financing available for physicians and medical professionals at First Financial Bank. Since we know you still don’t have an abundance of free time, we’ve broken down the benefits of our programs into the top five we think you should know.
Top 5 things to know about physician mortgage programs
As a potential high earner, you may be awarded a loan value higher than typical borrowers so long as you meet some basic requirements. All we require is verification from the practice, hospital or healthcare organization for whom you work and a look at your financial reserves to see if you qualify.
Here are a few of the basic requirements:
- Residents, interns and fellows welcome. You may not be in your permanent job yet, but we understand that these training programs are a step closer. If the start of your residency, internship or fellowship program is within 90 days of your mortgage note, you may qualify. This means you can look for more comfortable housing options for you and your family as you transition into the final phase of career preparation and before you’re fully established.
- You need six months of reserves. Despite the eight or so years you just put in, the market still considers you a newcomer to the field of medicine. So, a lender needs some assurance you’re committed to your career path and will be able to make your payments. The total of your monthly reserves must cover your principal, interest, taxes and homeowner’s insurance for a minimum of 6 months. The trade-off is that you may qualify for a high-value loan without having long-term employment. This requirement is a great way to start creating some discipline around budgeting since it may have been some time since you’ve had discretionary income.
- Friends and family can help. The good news is, gift funds are permitted for your down payment. So it’s a great time to cash those graduation checks and to remind your most loyal family and friends that you’re still getting started and value continued support.
- Established physicians enjoy higher loan values. When we say “established” it simply means you have had at least one year of full-time employment. Of course we’ll need to validate it, but once we do, you can borrow 100% of the appraised value of a home up to $750,000 or 95% of the appraised value of a home for loan amounts of $750,000 to $1,000,000.
- You can’t start a commune. You’re probably tired of living too close for comfort in dorms, apartments or university housing anyway, but you should know that these loans are reserved for owner-occupied, single-family residences, condominiums and planned unit development (PUD). So long as the home you’re purchasing is for your own rest and relaxation and fits the single-family criteria, you’re good to go.
The benefits are certainly worthwhile, from adjustable and fixed rate options. We know you have a career of giving back ahead of you. That’s why we want to help you get a strong, comfortable start to life.
Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.