Purchasing your first home can be exciting. Around 65% of Americans own their own home and for many, this marks one of the larger financial decisions you’ll make in your life. For medical school graduates, sometimes this dream can feel a bit elusive. Individuals in this group often have a substantial amount of student loan debt which can amount to hundreds of thousands of dollars owed set to soon begin accruing interest. If this is you, with so much debt, securing a conventional loan or even an FHA loan can seem to be next to impossible to do because your credit score can appear to be so poor. 

This is difficult. Financial institutions and mortgage lenders across the US, including PNC Bank, have recognized that, despite this reality, the majority of graduating medical professionals will go on to embark on lucrative careers. To help medical professionals get ahead financially and enjoy home ownership, doctors’ mortgages have been created. A PNC Bank physician’s home loan is similar to others in its class but it comes with a few of its own twists. 

Check out the following drawbacks and benefits to obtaining a PNC Bank medical professionals mortgage to see if this is the right route for you. 

Pros/Cons of PNC physician mortgage loans

A PNC physician’s mortgage can help you become a homeowner sooner and help you save money. If you have funds set aside for a mortgage, or someone you know can help you access this money, this type of mortgage loan product could be for you. 

Pros

A physician’s mortgage with PNC Bank has numerous positive aspects, as detailed below.  

Widely available. PNC Bank operates across the US and as such, its doctor’s mortgage program is available in all 50 states. This makes the program widely available to medical residents, interns, and fellows. This mortgage program can also be used by doctors who have completed their residency within the last 5 years. 

Reasonable loan terms. This mortgage gives borrowers access to:

• Up to $1,000,000 with 5% down 
• A maximum load limit of $1,500,000

You can choose from a standard fixed-rate mortgage option or an adjustable-rate mortgage with loan terms of 30 years. A fixed-rate mortgage may be available at a higher interest rate but it provides you with predictable monthly payments. In contrast, an adjustable-rate mortgage can potentially save you money but it comes with more risk as it fluctuates up and down with market trends. What you choose depends on your risk tolerance and what best suits your lifestyle. 

Lower possible monthly payments. This specialty mortgage doesn’t require you to purchase private mortgage insurance (PMI) and so it can potentially lower your required monthly payments. 

Someone can gift you part of your mortgage. As with some other mortgages, a PNC medical professionals mortgage allows others to give you money for part of your down payment. This means you don’t necessarily need to save all of your down payment yourself, and close connections can help.  

A grant to help with closing costs. PNC is offering a grant of up to $5,000, for those who qualify, towards your closing costs. This can make the process more affordable, which is a win. You can also choose how you use this credit to some extent, and by applying it towards your closing costs, or using it to cover other prepaid costs such as establishing an escrow account to pay for property taxes, or insurance renewals. Finally, you can also put these funds towards your down payment, if you choose. 

Accessible. PNC’s loan only requires you to have a minimum credit score of 700. This is about the average in the US, making this a more accessible mortgage loan. 

Cons

A PNC Bank physician mortgage comes with a few drawbacks, as detailed below. 

Can’t be used to finance a second home. This PNC mortgage loan can’t be used to refinance a current home or to purchase a second one. It can only be used to purchase a primary residence.

Proof of reserves. In addition to having saved a down payment of 5%, you may need to prove you have reserves of up to 4 months to sustain your mortgage payments depending on your LTV assessment. 

How to apply

To apply for this loan program, visit PNC online. You can begin the preapproval process by providing preliminary information to start the loan application process. You can also search for a mortgage loan officer, or call and speak to a representative at: 1-877-508-3339

When applying for a PNC doctor’s loan you will need to provide personal information to underwriting such as your:

• First, middle, and last names
• Your email address
• Date of birth

As with any loan eligibility process, you will also need to provide additional information for mortgage review that can include:

• Proof of an offer of acceptance to your residency/fellowship
• Recent tax returns
• Information on your present debt and credit history (credit cards, home equity lines of credit(HELOCs), personal loans)
• Proof of your education
• Your social security number
• Recent bank statements

Is using a PNC Bank doctor mortgage a good idea?

A PNC doctor mortgage can be ideal if you’re a medical student or you recently graduated and you’re interested in owning your own home. It allows you to access a mortgage of up to $1,000,000 with just 5% down and to use gift money towards your down payment. A grant can also be put towards lowering your closing costs or another cost-effective strategy, making this an attractive choice.

As a mortgage with a large, established bank, this doctor’s mortgage could be a good way to go, depending on your circumstances.

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