What Is First National Bank Physician Loan?

The First National Bank (FNB) Physician Loan is a mortgage product built for medical residents, fellows, and attendings that relaxes several conventional‑loan requirements so you can finance a home sooner or on more favorable terms.

• Low or no down‑payment options - many physicians qualify with as little as 3 % down, though exact minimums depend on the specific program and your credit profile.
• Higher loan limits - FNB often permits borrowing above the standard conforming caps, useful in high‑cost markets.
• Flexible debt‑to‑income (DTI) calculations - student‑loan payments may be amortized over a longer period, lowering the DTI ratio that underwrites the loan.
• Potentially no private mortgage insurance (PMI) - some FNB physician loans waive PMI when the down payment meets the program's threshold.
• Streamlined documentation - because the program is tailored to physicians, you may submit a reduced set of income documents compared with a conventional mortgage.
• Typical use cases - purchasing a primary residence, moving to a higher‑priced area for a fellowship or practice, refinancing existing debt to a lower rate, or acquiring an investment property where the lender allows it.

Check the current program brochure or speak with an FNB loan officer to verify the exact down‑payment requirement, PMI rules, and eligibility criteria before you apply.

• Eligibility includes U.S. citizens, permanent residents, and eligible non‑citizens who are currently employed as a resident, fellow, or attending physician and hold a valid medical license or training affiliation.
• FNB requires proof of employment, such as a contract, recent pay stub, or a program letter confirming training status and anticipated graduation.
• Applicants must meet the lender's baseline credit‑score and income standards; physicians are often evaluated on current or projected earnings depending on training stage.
• Student‑loan balances are factored into the debt‑to‑income calculation, but the program may allow higher ratios for physicians because of expected future income.
• Exceptions - such as visa‑holding international medical graduates or candidates with employment gaps - can be considered if additional documentation (visa status, match letter, or co‑signer) is provided.

First National Bank usually requires a down‑payment of 5 % to 20 % of the purchase price for its physician loan, with the exact percentage depending on your credit profile, the loan amount, and whether you're a resident, fellow, or attending. Student‑loan balances are factored into your debt‑to‑income (DTI) ratio, but the loans themselves are not required as cash reserves; deferred loans are typically included in the DTI calculation even while payments are paused.

Key points to verify

• Minimum down‑payment -  5 % may be allowed if you have strong credit and a low DTI; otherwise banks often expect 10 % - 20 %.
• Reserve requirements -  Most programs ask for two to three months of mortgage payments in reserve; this does not include the value of student‑loan balances.
• DTI impact -  All outstanding student‑loan balances, including those in deferment, are counted toward your DTI. A high DTI can limit the down‑payment flexibility you receive.
• Deferred loans -  Even when payments are postponed, the loan balance is still considered debt for qualifying purposes.
• Verification -  Ask the loan officer whether any of your loans qualify for alternative treatment, such as excluded from DTI under special physician‑loan rules.
• Improving eligibility -  Pay down or consolidate high‑balance loans before applying, or provide documentation of any income‑based repayment plans that lower the effective monthly payment.

Check the loan estimate you receive from FNB to confirm the exact down‑payment percentage, reserve expectations, and how your student loans are being treated. If anything is unclear, request a written clarification before you move forward with the application.

First National Bank physician loans usually carry fixed rates that sit near the low‑end of conventional mortgage offerings, but the exact percentage depends on credit score, down‑payment size, and debt profile. Most borrowers lock in terms ranging from 15 to 30 years, and loan amounts often match or exceed the standard conforming loan limit for the property's county - sometimes reaching six‑figures for highly qualified physicians.

Because rates and limits are not uniform, verify the current APR, any discount points, and the maximum financing you're eligible for during the quote stage. Ask the loan officer for a written rate sheet, confirm the available term lengths, and double‑check any caps that might apply to your residency or fellowship status before signing.

Gather these documents before you start the First National Bank physician‑loan application. Having everything ready speeds approval and reduces back‑and‑forth with the lender.

1. Identity verification
   • Government‑issued photo ID (driver's license or passport)
   • Social Security card or number confirmation
2. Professional status
   • Residents or fellows: Current training program letter, J‑1/visa documentation (if applicable), and a copy of your medical license or ECFMG certificate.
   • Attending physicians: Employment verification letter, recent pay stub, and a copy of your state medical license.
3. Income and employment proof
   • Most recent two pay stubs (or 30‑day average if on a stipend)
   • Federal tax returns (last two years) and W‑2 forms
   • Employment contract or offer letter showing salary and tenure
4. Asset and liability statements
   • Last two months of personal bank statements (checking, savings, money‑market)
   • Statements for retirement or investment accounts you plan to use for the down payment
   • Current mortgage or student‑loan statements to show existing debt
5. Property‑related documents (once you have a home in mind)
   • Signed purchase agreement or sales contract
   • Proof of funds for down payment (bank statement or investment account statement)
   • Gift letter, if part of the down payment is a non‑repayable gift, signed by the donor
6. Optional/ lender‑specific items
   • Credit report request form or permission for the bank to pull your credit
   • Residency or fellowship evaluation reports, if the lender requires additional performance verification

Check First National Bank's loan checklist or ask your loan officer whether any of these items need special formatting or additional supporting paperwork.

Submitting the complete application - using the documents listed earlier - usually triggers a quick initial review that takes 1 - 2 business days. During this window the lender confirms eligibility, checks basic credit and employment details, and requests any missing items.

After the intake, the loan moves to underwriting and appraisal. Underwriters typically need 3 - 5 business days to verify income, assess debt‑to‑income ratios, and evaluate the property's value. If the appraisal is required, the inspector's report adds another 2 - 4 business days. Complex cases, such as out‑of‑state residencies or large loan amounts, can extend this phase by a week or more.

Closing follows once underwriting clears. Most borrowers receive a clear‑to‑close notice within 1 - 2 weeks of the underwriting sign‑off, and the final funding appointment is scheduled for the next business day or two. Expect the whole process - from first submission to funded loan - to run about 2 - 3 weeks for a straightforward file, but always confirm expected dates with your loan officer, as individual circumstances may shift the timeline.

Here's a concrete, dated illustration of a resident financing a home with a First National Bank physician loan.

Scenario 1 - Early‑career resident

Assumptions (July 2024): $70,000 gross annual salary, $10,000 (≈15 %) cash down, $30,000 student‑loan balance, 720 credit score. The loan limit falls within the $500,000 ceiling typical for junior physicians. The resident locks a 30‑year fixed rate of about 5.5 % (rate varies by lender and market) and closes in roughly 45 days after submitting the required documents (pay stubs, tax returns, residency contract, and loan statements). The resulting monthly mortgage payment, including escrow, is near $2,800.

Scenario 2 - Mid‑career resident

Assumptions (July 2024): $120,000 gross annual salary, $30,000 (≈20 %) cash down, $80,000 student‑loan balance, 680 credit score. Because of higher debt‑to‑income, the bank caps the loan at $750,000, applies a slightly higher rate near 5.9 %, and requires an additional verification step. Closing takes about 60 days. The estimated monthly payment, with escrow, is roughly $4,200.

Both examples assume the borrower meets the basic eligibility criteria outlined earlier and that the property meets the bank's appraisal standards. Before proceeding, confirm current rates, fees, and any state‑specific limits directly with First National Bank.

Pick First National Bank (FNB) when you need a low down‑payment option, flexible underwriting for physician‑specific debt, or a loan product that tolerates higher student‑loan balances. Conventional mortgages usually require a 5‑20 % down payment and stricter debt‑to‑income ratios, while many MD‑specialty lenders impose higher rate floors or limit loan amounts. If the FNB physician loan offers a competitive rate relative to the market, lets you finance up to 100 % of the purchase price, and accepts your resident or fellow status without demanding extensive cash reserves, it typically edges out the alternatives.

Choose a conventional loan or a different MD‑focused lender when you have a strong credit profile, can comfortably meet a larger down payment, and prefer a product with broader lender competition that may drive rates lower. Also consider non‑physician loan programs if you expect to move out of the medical field soon, because the physician‑only benefits (e.g., student‑loan‑offset underwriting) may not apply. Before deciding, request a side‑by‑side quote that lists interest rate, down‑payment requirement, prepayment penalties, and flexibility on debt‑to‑income calculations; verify those figures against your own financial picture.

Safety note: always read the full loan agreement and, if needed, consult a financial advisor to ensure the product fits your long‑term goals.

• Watch for these common pitfalls and hidden fees when evaluating a First National Bank physician loan.
• Origination/underwriting fees: Often a percent of the loan amount; can add several thousand dollars. Ask for a written fee schedule and compare to other lenders.
• Pre‑payment penalties: Some loans charge a fee for paying off early in the first few years. Confirm whether the loan is penalty‑free or request the exact penalty schedule.
• Appraisal and inspection surcharges: Lenders may apply a 'physician‑loan appraisal' fee higher than the standard appraisal cost. Request an itemized invoice and consider obtaining an independent appraisal for comparison.
• Variable‑rate adjustments: If the loan includes an ARM feature, the rate may reset after an introductory period, raising monthly payments. Verify the index, margin, and caps that control future rate changes.
• Optimistic debt‑to‑income calculations: The bank may use projected future income to meet DTI limits. Run your own DTI using current income to ensure the payment is truly affordable.

International medical graduates may qualify for a First National Bank physician loan, but eligibility depends on U.S. medical licensure, immigration status, and credential verification.

FNB typically requires the following documentation and observes these common restrictions:

• current, unrestricted medical license in the state where the home will be bought;
• proof of lawful U.S. residence (green card, H‑1B, J‑1, O‑1, or similar visa);
• ECFMG certification or USMLE scores that confirm the foreign degree;
• employment verification letter from the teaching hospital, residency program, or practice;
• recent tax returns and bank statements showing sufficient income and reserves.

Because many IMGs hold time‑limited visas, FNB often asks for a larger down payment, imposes a lower loan‑to‑value ratio, or requires a co‑borrower who is a U.S. citizen or permanent resident.

Contact a First National Bank loan officer, request the most recent IMG policy, and confirm that your specific visa and licensure situation meet their guidelines.