[2024] A First Horizon Bank Physician Loan Guide: Who is it Best For?

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As physicians leave medical school with $200,000 - or more - in student loan debt (or more), banks across the country continue to offer creative physician loan programs to help doctors buy homes earlier in their careers.

These programs are oftentimes geared towards the highest earning medical professionals in the country. One of the most popular programs is offered by First Horizon Bank, a southeastern United States based bank with about 250 branch locations.

Here is a guide to their physician loan program.

In addition to banking, investment planning, and insurance products/services, First Horizon offers a physician mortgage program. Here are the eligibility and program details.

First Horizon's physician loan is open to MDs, DOs, OMSs, and DPMs, meaning doctors, oral surgeons, and podiatrists qualify. Other eligibility requirements include:

The program also takes into account your debt-to-income ratio, but fear not if you have lots of student loans. Flexible underwriting criteria help prospective buyers qualify even when they may not be eligible for a conventional loan.

Finally, your student loans are not included in consideration when deferred for over one year.

The program allows physicians to borrow up to $2.5 million, so long as they have a 10% down payment. Those that want 100% financing may qualify up to a maximum home purchase price of $1.5 million.

Qualifying providers should contact a First Horizon Bank Private Client Services Relationship Manager to learn more.

1. Large maximum loan amount

The fact that physicians can borrow up to $2.5 million can be both a pro and a con, if they buy irresponsibly. However, this purchase cap can help doctors with stable income to buy more house upfront, saving them from future moves, closing costs, and stress.

2. No minimum age requirement

First Horizon does not set any minimum age requirement to participate, so oral surgeons and other doctors can participate as soon as they have an offer letter or employment contract in hand.

1. Residents don't qualify

Many physician mortgage programs offer home financing to qualifying fellows and residents completing the final stages of their education. This helps young doctors to buy homes in a new city or state.

This is not an option with First Horizon Bank. However, applicants may still close on a home up to 90 days before their employment start date, as indicated on an offer letter or employment contract.

2. Exclusion of pharmacists, veterinarians, PAs, and NPs

It has become more common for physician lenders to include other types of providers in their program eligibility. Unfortunately, First Horizon Bank's program is more traditional in that it is only open to doctors, dentists and podiatrists.

Ultimately, borrowers across the country have a huge selection of special mortgage programs to consider. This can make it difficult for doctors to know which program to pick.

We recommend the First Horizon physician loan for:

As it relates to First Horizon, we feel that their program is best for those that live in qualifying high cost of living states, like Connecticut, New York, New Jersey, and Virginia.

This is because their maximum loan amount of $2.5 million is among the highest in the industry. Doctors buying and working in the nation's most expensive states oftentimes will often use this financing to buy their forever homes and grow into them, as long as their income can support it.

But in more affordable states like Louisiana, Mississippi, and Texas, this $2.5 million loan cap may incentivize providers to buy homes that they don't need and cannot afford.

First Horizon also includes H-1B visa holders among qualifying applicants. So, if you're not a United States citizen but plan to practice medicine under the H-1B program first Horizon may be the perfect choice for you.

Many other lenders, like BMO Bank, mandate that program participants be United States citizens.

Since eligibility begins for doctors with credit scores as low as 670, those with slightly subpar financial pasts may still qualify to buy their dream homes.

They'll still want to make sure they're being financially responsible, but it is nice that those that made an irresponsible financial decision early in life won't continue to be penalized for it.

After getting more details from a Private Client Services Relationship Manager, you may begin the loan application process. The process will require you to open a checking account with the bank, but this is easily done.

The RM assigned to answer your questions will likely ask you for basic contact information (like your name, address, and phone number), as well as information about the property you need to finance.

This information will then be passed to a loan officer at First Horizon, and you'll be able to complete the online application.

The mortgage application is standard and will require you to have financial records and paperwork on hand, like:

You may be asked to provide other documents, such as an offer letter, to help proceed through the underwriting process.

After submitting your application, you'll just sit back and wait for your loan approval or rejection letter. If approved, you'll be provided lots of disclosures and paperwork that contain estimated closing costs, loan amounts, interest rates, and more important information!

We've been writing about physician loans at The Student Debt Destroyer for a while now, and First Horizon's program is among the most unique we've come across. Between its high loan limits, low credit score requirement, and access for non-US citizens, the program certainly stands out in the industry.

Is a First Horizon physician loan of interest to you?

Tell us why or why not in the comments below!

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