Pilot Mortgage Loan: 0% to 10% Down for ATP Pilots

Pilots are often away from their families due to variable schedules and flight assignments. It’s understandable that many pilots want a “home base” that provides a stable environment for their spouse, partner or children. But qualifying for a mortgage isn’t always straightforward. Plus, it can take years to save up for a large down payment.

Fortunately, there are pilot-friendly lenders that want to earn your business by providing low down payment solutions that come with a host of other benefits. Read on to learn how you can benefit from a pilot mortgage and where to find one.

Do banks offer mortgages for pilots and what are the perks?

As banks compete for business with high-income earners, many realize the relationship-building power of offering special home financing programs to specific professions.

Traditionally, these financing opportunities, called “physician mortgage” or “professional home loan” programs, have been exclusive to medical doctors and dentists. But some lenders have expanded their eligibility requirements to include other target audiences, including pilots.

These “pilot mortgages” are designed to make qualifying for a home loan easier and more affordable. The main benefits of a pilot mortgage loan include:

• Low down payment options, usually ranging from 0% to 10%.
• No private mortgage insurance (PMI).
• Higher loan limits in the $1 million range that don’t trigger an interest rate increase.
• Exclusion or modified treatment of flight school student loan debt when calculating your debt-to-income ratio (DTI).
• Potential to close on a home up to three months (varies by lender) before starting a new position with proof of an acceptable employment contract.
• Comparable interest rates to a conventional mortgage with a variety of adjustable-rate and fixed-rate options.

Additionally, pilot compensation can sometimes create turbulence during the underwriting process due to irregular work schedules and complex pay structures. You want to work with a pilot-friendly lender that understands the nuances of the aviation profession to streamline your home buying process.

Where to find a lender offering a pilot mortgage

Pilot mortgages aren’t as readily available as other professional mortgage programs. But it doesn’t hurt to reach out to other physician mortgage lenders to discuss your exact situation.

We’ll add to this list as more professional and physician mortgage programs expand their eligibility requirements to include the ATP certificate.

1. Flagstar Bank

ATP pilots living in nearly all 50 states can take advantage of the physician mortgage program with Flagstar Bank. This program serves a wide variety of doctorate and professional licenses, including the aviation profession.

Home financing options include:

• 0% down for up to $1 million.
• 5% down for up to $1.5 million.

This lender serves early-career pilots who are within 10 years of starting their flying career. It also works with H1-B Visa and green card holders.

Note this special home loan program only provides adjustable-rate mortgage (ARM) options. There isn’t a traditional 30-year or 15-year fixed interest rate option at this time.

States available: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

2. U.S. Bank

Although it isn’t a pilot mortgage, U.S. Bank offers an 80-10-10 mortgage as an alternative low down payment solution for qualified borrowers. This type of piggyback loan allows home buyers to only put down 10% with no PMI by carrying two mortgages simultaneously — one at 80% of the home’s purchase price and the second at 10%.

States available: AL, AK, AZ, CA, CO, DC, ID, IL, MA, MD, MT, MI, MN, MS, NE, NV, ND, NM, NY, NJ, OK, OR, RI, SD, TX, UT, WA, WY, WI

Should you use a pilot mortgage loan?

A pilot mortgage has many obvious benefits, such as the ability to buy a home with $0 down and no PMI. It’s also easier to qualify for than a conventional mortgage, in most cases.

But here are some not-so-apparent benefits: It can give you the freedom to choose how you use your money and fast-track your home-buying timeline overall.

Let’s say you’ve been saving up for a traditional 20% down payment on a $500,000 home. You have about $50,000 set aside at the moment for when you’re ready to buy a home later down the road. It could take several more years to save an additional $50,000. Plus, a half-million dollar home today will likely cost more in the future.

By using one of these mortgages for pilots, you can get into your dream home a lot faster and free up your savings for other financial or personal priorities. For example, you could make immediate renovations without needing to take on high-interest debt. Alternatively, you could refinance and pay off your student debt.

The bottom line is that a pilot mortgage loan can give you options, as well as more financial flexibility for your family. But you should also explore other low down payment solutions, such as the VA loan, FHA loan or USDA loan. Additionally, your spouse’s profession might qualify for other physician mortgage programs.

Do your research to find which program and lender will benefit your household the most. To start receiving quotes for mortgages for pilots, fill out the form below.