Fairway Mortgage Physician Loan Review - Student Loan Planner

After finishing your medical degree, there’s a good chance you’ll have a lot of student loans — making it difficult to qualify for a conventional mortgage. However, there are some lenders that offer access to special home loan financing for doctors.

Physician home loans can provide you with an opportunity for home ownership, even though you might not normally qualify for various types of mortgages. One company offering this type of loan is Fairway Independent Mortgage Corporation. Let’s take a look at some of the Fairway mortgage requirements for a physician loan so you can decide if it’s right for you.

Fairway Independent Mortgage Corporation physician mortgage details

Pros

When considering a physician loan from Fairway, there are a few advantages to borrowers who use this program.

No mortgage insurance

A big expense associated with a home loan is the additional private mortgage insurance (PMI) with a down payment that’s less than 20% of the home price. However, medical professionals might have access to a loan without worrying about mortgage insurance when they use Fairway. This lender doesn’t charge monthly premiums.

As little as six months of reserves required

The physician loan program at Fairway requires six months of reserves to qualify. Additionally, you can use gift funds for a down payment if you’re a doctor not too far out from your medical residency or if you’re a medical resident. This makes it a little easier to qualify for a larger home loan than you might otherwise.

Obtain a mortgage before starting your medical residency or job

Some mortgage lenders won’t let you get a loan before you have a job, but you can use your employment contract to secure physician loan options with Fairway. As long as you’re a newly licensed medical student ready to start a residency or employment within 60 days of closing, you can potentially qualify for physician loan products at Fairway.

Cons

Before moving forward with one of these mortgage loans, consider the drawbacks. Here’s what physician home buyers need to know before committing.

Monthly mortgage payments could be too large

Even though you might qualify for a loan amount of up to $2 million with Fairway, it doesn’t mean that it’s the right choice for you. A small down payment, plus a large mortgage, can lead to regular payments that might strain your budget.

If you’re in medical residency, your future employment options and pay are a bit uncertain, which could make your home mortgage unaffordable.

You can use one of the many mortgage calculators available to get a feel for what your monthly mortgage payment might be, and whether you can afford it.

Down payment required

Even though gift funds can be used to help you qualify for your physician loan, you still need to contribute at least 5% of your own money. If you don’t have that money saved up, you might not be able to get the loan.

Additionally, you might not get the best interest rate without putting down a larger down payment. Keep in mind that you’ll also need to save up for closing costs and other potential fees.

How to apply for a Fairway mortgage

If you decide to apply for a physician loan through Fairway, there are some steps you need to follow.

Step 1: Learn about your options

Find out what your options are, from fixed-rate to adjustable-rate mortgage loans to other choices. You can speak with a loan officer by filling out a form on the Fairway mortgage website, or by reaching out to Manish Patel by calling (617)-917-2233.

After connecting with a Fairway loan officer, you can get more information about how to qualify and what loan programs are available for you.

Step 2: Gather your documentation

Some of the information you’ll need as you apply for a physician loan includes:

  • Whether you plan to refinance or purchase.
  • Purchase price and desired loan amount.
  • Your potential down payment, including gift funds.
  • Type of residence, since some homeowners won’t be eligible.
  • Location of the property.
  • Estimated credit score.
  • Stage of your career (medical resident, practicing medical professional, under an employment contract, etc.).
  • Financial statements and information.
  • Tax returns.
  • Documentation that you have a medical degree and license.
  • Identifying documentation.
  • You might also need other documentation, so ask your loan officer for the needed information. This is especially true if you’re self-employed. You might need additional documentation when you have your own practice.

    Step 3: Apply for the physician loan

    If you decide that a loan from Fairway Independent Mortgage Corporation makes sense, your next step is to complete a loan application and finish the process. You’ll need to sign the disclosures and documents and meet other conditions, such as getting homeowners insurance.

    Once that’s done, an underwriter will double-check the information and complete the purchase.

    Should you apply for a physician loan with Fairway?

    Although some medical professionals like the idea of a physician loan, it’s not the only option. Check to see if you qualify for an FHA or USDA loan.

    You should also compare other physician loan options to see if one of them better serves your needs. Carefully consider what works for you and make the choice most likely to work for your immediate and long-term needs.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    1 Lowest rates shown include auto debit discount. Advertised rates are for the Smart Option Student Loan for undergraduate students and are valid as of 7/22/2021.

    Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/ separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

    Fairway Mortgage Physician Loan Review - Student Loan Planner