5 3 Bank Physician Loan Options and Requirements

If you're a physician looking to finance your medical education, 5 3 Bank offers several loan options to consider. The bank's physician loan programs are designed to help medical students and residents cover the costs of their education.

To be eligible for a 5 3 Bank physician loan, you'll typically need to be a full-time student or resident in a medical program at an accredited institution. The bank's loan options are available to both U.S. and international medical students.

The loan amounts and interest rates for 5 3 Bank's physician loan options vary depending on the specific program you're applying for. For example, the bank's Residents Repayment Loan offers up to $150,000 in loan forgiveness for participating residents.

To be eligible for a 5/3 bank physician loan, you must have one of the following degrees: M.D., D.O., D.D.S., or D.M.D with an employment contract.

Most lenders, including 5/3 bank, prefer credit scores over 700. However, they are flexible when looking at creditworthiness.

You can qualify for a doctor mortgage with student loans that are in Income Dependent Repayment (IDR) programs. Student loans that are deferred for at least 12 months from the date of closing are also excluded.

Fifth Third Bank has a minimum credit score requirement of over 700. However, they often look at the big picture and determine if you're a good candidate.

Fifth Third Bank offers a variety of loan programs for physicians, including the Doctor Program, which is open to MDs, DOs, DMDs, DDSs, and DPMs, as well as residents and fellows in training.

The bank's physician loan programs also have different options for new and established doctors. 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 can borrow up to $750,000 with no down payment or up to $2 million with 10% down on the home.

Here are some key details about the loan programs offered by Fifth Third Bank and other providers:

Most lenders only offer physician loans to new doctors, but Fifth Third Bank is an exception. They have a program specifically for established physicians.

New doctors can borrow up to $750,000 with no down payment or up to $1 million with 10% down on the home. This is a great option for residents, fellows, and interns who are just starting their careers.

Established doctors, on the other hand, can borrow up to $750,000 with no down payment or up to $2 million with 10% down on the home. This is a significant difference and shows that Fifth Third Bank trusts established physicians to make smart financial decisions.

Here's a quick comparison of the two programs:

Fifth Third Bank has an A+ rating with the Better Business Bureau. This indicates a high level of trustworthiness and reliability.

They offer a large number of loan programs, including physician loans. This suggests that they cater to various needs and professions.

Fifth Third Bank makes it easy for borrowers to apply online, over the phone, or in person. This flexibility is convenient for those with different preferences.

Their loan programs are designed to be accessible, making it easier for people to get the financial help they need.

Alliant Credit Union is a reliable option for medical professionals looking to finance their dream home. They offer a Medical Professional Loan Program available in all states except Maryland.

Their program allows for 100% financing up to $1,000,000, 95% financing up to $1,250,000, and 90% financing up to $2,000,000. This is a significant advantage over other lenders that often have lower loan limits.

You can borrow without worrying about Private Mortgage Insurance (PMI). Closing is available 90 days before employment starts, which is a convenient feature for medical professionals.

To qualify, you'll need a minimum FICO score of 700 and a maximum debt-to-income ratio of 45%. Most lenders require you to have completed training within the last 10 years, but Alliant Credit Union has no such limit.

Their loan options include conforming and non-conforming loans, fixed and adjustable rates, and 30- and 15-year fixed rates. You can also choose from 5/6, 7/6, and 10/6 ARMs, which offer a fixed rate for the initial period of the loan.

Student loan debt is omitted in qualifying ratios if deferred at least 12 months, and you can use an income-based repayment schedule if not deferred for 12 months.

First Merchants Bank is a community bank with a long history in the Midwest, dating back to 1893 in Muncie, Indiana. They serve customers across four states: Indiana, Ohio, Illinois, and Michigan.

First Merchants offers a range of mortgage programs, including fixed and adjustable rate options. They also provide 100% financing up to $1 million, 95% financing up to $1.25 million, and 89.9% financing up to $2 million.

One of the bank's unique features is the elimination of private mortgage insurance (PMI) on their mortgage programs. They also allow gift funds towards down payment, closing costs, and reserves.

First Merchants has a specialized mortgage program for physicians, which offers greater flexibility on debt-to-income (DTI) ratios and higher loan limits. This program also allows for the elimination of student loan debt from DTI calculations when in deferment or forbearance for at least 12 months after loan closing.

The bank's Physician Mortgage Program is designed to provide more favorable terms for medical professionals, including a lower down payment and no PMI.

South State offers a unique mortgage loan product specifically designed for medical professionals.

Their Physician Loan allows for up to 100% financing without requiring private mortgage insurance (PMI), which is typically needed for down payments under 20%.

The loan is available for primary or secondary residences and can be used for loans up to $1,250,000.

South State will loan up to 100% of the loan to value based on the lesser of the purchase price or a bank-accepted appraisal.

To qualify, closing costs must be paid upfront and cannot be financed under the 100% financing program.

Here are the financing options available through South State's Portfolio Physician's Loan Program:

First Community Mortgage offers a comprehensive loan program tailored to physicians, providing competitive terms and flexible financing options. They offer 100% financing up to $1M, 5% down up to $1.75M, and 10% down up to $2.5M with no mortgage insurance.

Their physician loan program is available for primary residences, including condos, PUD's, townhomes, and approved modular homes. Financing is also available for 1-to-2-unit residences.

The loan program includes very competitively priced jumbo loan offerings, creative financing approaches for those with credit or income challenges, and gift funds are acceptable. The program offers a 30-year fixed loan, a 7-year ARM, or a 10-year ARM, all with a 30-year amortization and a fixed rate period of either 7 or 10 years.

Here are the key features of First Community Mortgage's physician loan program:

Physicians can choose between a fixed or adjustable-rate loan, depending on their long-term plans. Fixed mortgage loans are suitable for doctors who plan to stay in their home for a long time.

Applying for a physician mortgage loan with Fifth Third Bank is a straightforward process. You can apply using their simple steps.

One of the biggest advantages of a physician mortgage loan is that you can put down less than 20% and still avoid paying Private Mortgage Insurance (PMI). This is a significant cost savings, especially since paying PMI hasn't been tax deductible since 2021.

The loan also considers your total required student loan payment, not the total amount owed, which can be a major relief for physicians with high student loan debt. Additionally, they will generally accept a signed employment contract as proof of income, rather than requiring tax stubs.

Here are the details of the loan:

The mortgage must be for your primary residence and does not require PMI regardless of down payment.

DTI is a crucial aspect of loan qualifications, and physicians have it a bit easier with certain lenders.

Fifth Third Bank excludes student loan debt from the debt-to-income ratio, which is a huge relief for doctors with significant medical school debt. They also consider future earning opportunities, especially for new doctors who will quickly work their way up the ladder.

Some physician loan programs don't count medical school debt if the payments are deferred or in forbearance for a certain period, which reduces the DTI and makes it easier to qualify for the loan.

Residency contracts can be used as verification of employment, which is a big advantage for doctors who are just starting their careers.

Here are some key points to keep in mind about DTI and physician loans:

So, let's talk about what's covered under a Physician Mortgage Loan. You can get both variable and fixed-rate options, which means you have flexibility in choosing a loan that suits your needs.

Variable Rate loans have interest rates that can adjust up or down over time, while Fixed Rate loans have a fixed interest rate for the entire term of the loan. This is important to consider when deciding which type of loan is right for you.

The mortgage must be for your primary residence, which means you can't use this loan for a vacation home or investment property. Additionally, there's no requirement for private mortgage insurance (PMI), regardless of your down payment.

You don't need a down payment if you're staying within the standard conforming loan limit, but you'll need to put down 5% if you're borrowing more than that. This can be a huge advantage for physicians who want to buy a home without breaking the bank.

Physician loans offer flexible loan amounts depending on your status as a new or established doctor. For new doctors, the maximum loan amount is up to $1 million.

As you progress in your career, your loan limits increase. Established doctors can borrow up to $2 million. This is a significant advantage, especially considering the high costs associated with medical school debt.

You can borrow up to 100% of the loan amount on loans up to $750,000, and even with a small down payment, you can get higher loan amounts. Fifth Third Bank is an example of a lender that offers this flexibility.

Here's a breakdown of the maximum loan amounts for new and established doctors:

Keep in mind that these loan limits may vary depending on the lender and your individual circumstances. It's essential to review the terms and conditions of your loan carefully before making a decision.