Physician Mortgage Loan Review: First National Bank of Omaha

Healthcare professionals have the potential to earn high incomes, but there are also longer times in school — resulting in a relatively high amount of student loan debt. Even if you can afford your monthly payments on student loans, you might wonder if homeownership is within your reach.

First National Bank of Omaha (FNBO) offers physician home loan programs, as well as other programs for professionals. Let‘s take a look at FNBO so you can decide if it makes sense for your home buying journey.

Minimum down payment	No down payment for loans up to $850,000 5% down payment on loans up to $1.25 million 10% down payment on loans up to $1.5 million
Residents allowed	Not disclosed
Maximum loan amount	$1.5 million
Degrees that qualify	MD, DO, DDS, DMD, DVM, CRNA, NP, PA, PharmD. Professionals also qualify for special loans, including CPA, CFA and JD.
Eligible states	CO, IA, IL, KS, MO, NE, SD, TX, WY

First National Bank of Omaha physician mortgage loan details

First National Bank of Omaha was founded in 1857, primarily to serve the needs of pioneers headed west. The bank also claims to be one of the first to issue credit cards. The physician loan program at FNBO is also one of the most expansive, including some nursing degrees. The lender also offers special loans to professionals like lawyers and CPAs.

FNBO physician mortgage loan: Pros and cons

Depending on your situation, you might qualify for a home loan through First National Bank of Omaha. Pay attention to potential fees and closing costs. Remember, too, that your down payment depends on how much you borrow.

FNBO also offers refinancing to borrowers. Here are some of the pros and cons of using FNBO as your lender for this home financing option.

FNBO physician mortgage loan pros

First National Bank of Omaha offers physician mortgage loan products that include some advantages, including competitive rates.

Wider variety of qualified degrees

Rather than limiting the loan options to those with specific physician degrees, such as dentists and pharmacists, FNBO also allows nurse practitioners, certified registered nurse anesthetists and physician assistants to access these loan programs.

Other professionals also have eligibility for special home loans, including accountants and lawyers.

Different types of loans

First National Bank of Omaha offers a 30-year fixed physician mortgage loan as well as adjustable-rate options. When getting an adjustable-rate mortgage, you typically have a set period of fixed interest and later, variable rates that can change over time. FNBO also offers FHA and VA loans to physicians and others.

Use our physician mortgage loan calculator to help you decide what mortgage payment and other terms will work best for you.

Refinancing

Physicians and other professionals who have a good amount of home equity and want to refinance can do so with First National Bank of Omaha. FNBO includes the cost of the appraisal in the loan, so you don’t need to come up with out-of-pocket costs when refinancing.

No PMI requirement

For most conventional loans, if you have a down payment amounting to less than 20%, you often end up paying Private Mortgage Insurance (PMI). However, with First National Bank of Omaha, you don‘t have to worry about it.

FNBO physician mortgage loan cons

Before moving forward with this loan program, make sure you understand the drawbacks and weigh them against the advantages.

You might borrow more than needed

A low down payment can tempt you to get a bigger mortgage than you can afford. FNBO has different programs that allow you to pay $0 down on up to $600,000 or $850,000, depending on your eligibility. Be careful about getting too much house and letting a physician mortgage make you house poor.

Monthly payments can be difficult to manage

Your monthly mortgage payment might be high and difficult to manage as part of your budget. Keep your debt-to-income ratio in mind. Paying on a mortgage and a student loan can be challenging.

Credit score minimum

The minimum credit score of 720 at FNBO is a little higher than some other physician loans. You need to have excellent credit to take advantage of this program. However, you’re more likely to qualify for a lower interest rate when you have better credit.

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How to apply for a First National Bank of Omaha physician mortgage loan

Before making a decision about your lender, compare three to five loan providers. If you decide that FNBO is best for your needs, you can then apply for a physician mortgage loan.

Step 1: Contact First National Bank of Omaha

When reaching out, it’s easier to determine your eligibility if you’re ready with the following information:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Property location
• Property zip code
• Degree
• Employment contract

Step 2: Gather necessary documentation

To get any mortgage loan, you need to verify your information. Your mortgage loan officer can provide you with what you’ll need, including:

• Purchase agreement.
• Pay stubs (recent 30 days) or an employment letter, if you haven’t started.
• Recent bank statements.
• Tax returns.
• Driver’s license or other ID.
• Other documents, as requested.

Whether you‘re a first-time home purchaser or you‘ve done this before, having these documents can help you get your loan approved faster.

Step 3: If approved, accept the loan

After receiving approval, decide whether to accept the home loan. Read the disclosures and understand the total closing cost and terms. Pay attention to fees and penalties. Once everything‘s signed, you can prepare to buy your real estate property.

Should you apply for a physician mortgage loan with FNBO?

First National Bank of Omaha offers physician mortgage loans to various physicians, veterinarians and those with other healthcare degrees. Depending on the situation, you might be able to get a $0 down payment and become a first-time homebuyer.

Before you move forward, understand the impact the mortgage will have on your finances. Compare FNBO to other physician mortgage lenders and choose the best home loan for you, or fill out the form below.