Northwest Bank Physician Loan Review

Medical professionals, especially doctors, have the potential for a high income. However, the schooling required to get an advanced degree in a healthcare field can result in a high amount of student loan debt. As a doctor or dentist, you might be able to afford the monthly payments on your student loans, but still wonder if you can afford homeownership.

Northwest Bank offers a physician mortgage program, as well as opportunities for dentists and other healthcare professionals. Find out if Northwest Bank offers you the products you need to become a homeowner.

Minimum down payment	0% down for amounts up to $950,000 5% down for amounts up to $1.25 million 10% down for amounts up to $1.5 million
Residents allowed	Yes
Maximum loan amount	$1.5 million
Degrees that qualify	MD, DO, DDS, DMD, DPM and OD
Eligible states	NY, MD, OH, IN, MI, PA

Northwest Bank physician mortgage loan details

Northwest Bank is a subsidiary of Northwest Bancshares. Northwest Bank was founded in 1896 in Pennsylvania and has branches in New York, Ohio and Indiana, as well as in Pennsylvania. It’s an FDIC-member and equal housing lender.

In addition to physicians and osteopathic specialists, Northwest also offers loans to dentists. Doctor loan programs offer special underwriting that makes it easier for some professionals to access financing for home purchase.

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Northwest Bank physician mortgage loan: Pros and cons

Depending on your needs and qualifying information, you might be able to get a conventional mortgage, VA loan or doctor mortgage through Northwest. Pay attention to potential origination fees and closing costs.

Northwest allows borrowers to refinance and offers home equity loans. Review the pros and cons of using Northwest Bank as your lender for your doctor loan.

Northwest Bank physician mortgage loan pros

With Northwest, you can access doctor loan options that include some advantages, including competitive interest rates.

Residents and fellows

It’s possible to get a physician mortgage loan as a resident or fellow with Northwest Bank. It’s also possible to qualify if you have an employment contract and are within 60 days of your start date. However, it’s important to note that residents have a lower maximum loan amount of $647,200 with a 0% down payment.

Different types of loans

Northwest offers a variety of options for different loans, including fixed-rate and adjustable-rate mortgages in various term lengths. Carefully compare these terms with your doctor mortgage options to see what works best. You can also refinance using Northwest Bank.

Use a physician mortgage loan calculator to help you decide what mortgage payment and other terms will work best for you, whether you get a small conventional mortgage or a jumbo loan.

No PMI

In addition to various options and a low down payment, it’s also possible to avoid paying private mortgage insurance (PMI), no matter your down payment amount.

Northwest Bank physician mortgage loan cons

Before moving forward with this or any other loan program, you should understand the downsides. Here are some of the drawbacks to getting a physician loan to become a homeowner.

Low down payments can lead to a higher monthly payment

It can be tempting to get a bigger mortgage because of the low down payment. However, this can lead to higher monthly payments. You might also end up house poor if you get a larger mortgage than is affordable for your situation.

Monthly payments can be difficult to manage

You can get up to $1.5 million, so your monthly mortgage payment might be high and difficult to manage. Don‘t borrow so much that your debt-to-income ratio is unaffordable while you live in your new home.

Credit score minimum

The minimum recommended credit score for physician loans is 700. You need to have good to excellent credit to get the best interest rates. In some cases, you might need to turn to a conventional loan or a government-backed FHA loan program with more flexible requirements.

How to apply for a Northwest Bank Bank physician mortgage loan 

Part of the home buying process is to compare lenders. Consider looking at three to five loan providers to see what terms they offer. Look for those that have no private mortgage insurance, low mortgage rates and other generous terms.

If you decide that Northwest is best for your needs, you can move forward with a physician mortgage loan.

Step 1: Contact Northwest Bank

To get started with your new home purchase and get approved for a doctor loan, you or your realtor can reach out to a bank representative. Which one depends on where you’re at:

• For NY or MD, contact Bob Amico.

Before you reach out, have the following information available:

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

Step 2: Gather necessary documentation

To get any home loan, you need to prove that your information is accurate and your income will be enough for loan monthly payments. Your mortgage loan officer can provide you with a list of what you’ll need. Some documentation might include:

• Purchase agreement.
• Pay stubs (recent 30 days) or an employment contract, 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 homebuyer or you’ve been through the process before, having these documents can help you get your loan approved faster.

Step 3: If approved, accept the loan

If Northwest Bank approves you, it‘s time to decide whether to accept the home loan terms and conditions. Read the disclosures and understand the total closing costs and potential penalties. Once everything‘s signed, you can prepare to take possession of your new real estate.

Should you apply for a physician mortgage loan with Northwest Bank?

Physician mortgage loans from Northwest can make sense, depending on your situation. It’s an equal housing lender and offers a variety of terms and loan options that can work for different situations.

Review the impact a large mortgage will have on your finances. Compare Northwest Bank to other physician mortgage lenders and make a choice based on what works best for you. You can also fill out the form below for more information.