First Bank Professional Loan Program: Physician Mortgage Review

After sinking hundreds of thousands of dollars into your degree, homeownership might seem like a far-off dream. But physician mortgage programs, like the First Bank Professional Loan, allows residents, fellows and early-career attendings to secure a mortgage with $0 down or other low down payment options.

With more flexible underwriting criteria, no private mortgage insurance (PMI) and other exclusive perks, owning a home could be on the horizon. Read on to learn about the First Bank Professional Loan program.

First Bank Professional Loan details

First Bank is one of the largest family-owned banks in the United States, with more than 100 years of family ownership, dating back to 1906. As a full-service mortgage lender, it offers a variety of home loan opportunities for first-time homebuyers and young professionals.

The First Bank Professional Loan program is available to medical, dental and legal professionals in select states.

Minimum down payment	0% down for up to $400,000 5% down for up to $1 million
Residents or fellows allowed	Yes
Maximum loan amount	$1 million
Degrees that qualify	MD, DO, DMD, JD
Eligible states	CA, MO, KS, NE, IL

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First Bank Professional Loan: Pros and cons

There are many physician mortgage programs that work with high-income professions. So, it’s best to consider the benefits and potential drawbacks of each program before blindly applying for a mortgage.

Pros of the First Bank Professional Loan program

• Low down payment options. Includes 0% down for loan amounts up to $400,000 and 5% down for up to $1 million.
• No PMI. You can save hundreds of dollars each month on PMI payments, regardless of your down payment amount.
• Lawyers are eligible. The base audience for most physician mortgage programs is doctors and dentists. But First Bank also serves attorneys.
• Financing available before starting training. Residents and fellows can close on a home up to 30 days before their employment start date.
• Student loans might be treated more favorably. Student loan payments that are in deferment during residency or fellowship won’t be part of your debt-to-income ratio.

Cons of using a First Bank Professional Home Loan

• Shorter timeframe for using contracted future income. Most physician mortgage programs allow residents and fellows to close within 90 days of their start date. First Bank maxes out at 30 days.
• Only available in select states. This program is currently available in California, Illinois, Kansas, Missouri and Nebraska.
• Second homes and multi-unit properties aren’t eligible. Financing is only available for owner-occupied residences, including single-family, condo, townhouse and attached PUDs.
• Limited to adjustable-rate mortgages (ARM). There’s no fixed-rate option, but you can choose between a 10/6 ARM, 7/6 ARM and 5/6 ARM.

How to apply for a First Bank Professional Loan

If you’re in an eligible state and feel First Bank might be a good match, follow these next steps.

Step 1: Reach out to a First Bank Home Loan advisor

If you meet basic eligibility requirements, such as having a credit score of 720 or higher, it’s best to speak with a knowledgeable mortgage advisor to learn more about the program.

In this initial conversation, be prepared to talk ballpark numbers related to your desired loan amount and financial standing. You’ll also need to provide basic personal and professional information, such as your contact information, degree and training plans.

Step 2: Gather mortgage application documentation

To move the loan process along faster, collect financial, employment and tax information ahead of time. This includes downloading bank statements and asset account statements, among other documentation requirements.

Here’s a detailed list of information that First Bank will need to begin the loan approval process.

Source: First Bank Home Loan Resources

Step 3: Respond to additional requests for information

First Bank might need additional documentation or clarification during the underwriting process. So, keep an eye out for communication from your loan officer and respond in a timely manner.

Step 4: Prepare to close on the loan

If you’re on track for approval, you’ll need to open a First Bank checking account in order to enroll in automatic mortgage payments. This is a program requirement that must be completed before closing.

When it’s time to close on your new home, thoroughly review the closing costs and loan disclosure. After signing, take a deep breath and prepare for the rollercoaster adventure of being a homeowner.

Is the First Bank Professional Loan program right for you?

First Bank is one of many physician mortgage loan programs that are hustling to earn the long-term business of doctors and dentists. But it’s also one of the few that has extended eligibility requirements to include the legal profession.

Overall, the First Bank Professional Loan program is a great opportunity to access $0 down for home loan amounts up to $400,000. For loans up to $1 million, you’ll need to prepare a 5% down payment. If you prefer a more substantial mortgage, First Bank offers other portfolio products for over $1 million.

If you want help comparing home loan options in your area, fill out the form below to get quotes for your next purchase or refinance.