Arvest Bank Physician Mortgage (Updated 2024)
Navigating the homeownership journey can be a daunting task, especially for medical professionals burdened with substantial student loan debts. However, specialized mortgage programs like Arvest Bank’s physician loan offer a beacon of hope, empowering doctors to secure their dream homes with remarkable ease. This comprehensive guide delves into the intricacies of Arvest Bank’s physician mortgage, dissecting its features, qualifications, and application process, while objectively weighing its pros and cons against alternative lenders.
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What is Arvest Bank?
Rooted in the heartland of Northwest Arkansas, Arvest Bank has blossomed from its humble beginnings in 1961 into a formidable regional banking force, extending its services across Arkansas, Kansas, Missouri, and Oklahoma. With over 200 branches, Arvest Bank has transitioned from a local institution to a community-driven financial powerhouse, offering a comprehensive suite of personal and business banking solutions, including home loans, investments, and trust services.
Arvest Bank Physician Loan Highlights
Arvest Bank’s physician mortgage program stands as a testament to the institution’s commitment to catering to the unique financial needs of medical professionals. Here’s a quick overview of the program’s salient features:
Financing Options: Arvest Bank offers up to 103% loan-to-value (LTV) financing, enabling borrowers to secure 100% of the sales price and an additional 3% to cover taxes, insurance, and closing costs.
Loan Products: A diverse array of loan options is available, encompassing fixed-rate and adjustable-rate mortgages, tailored to suit individual preferences and financial circumstances.
Maximum Loan Amount: The maximum loan amount varies based on the borrower’s creditworthiness and income, ensuring a personalized approach to financing.
Qualifying Degrees: Arvest Bank’s physician loan program is accessible to medical doctors, both practicing and in residency, as well as dentists.
Private Mortgage Insurance (PMI): Borrowers can potentially bypass the requirement for PMI, resulting in lower monthly payments and substantial long-term savings.
Is an Arvest Physician Loan Right for You?
Arvest Bank’s physician loan program is designed to cater to the specific needs of medical professionals, with eligibility criteria tailored to accommodate their unique financial circumstances. To qualify for this specialized mortgage product, applicants must meet the following requirements:
Down Payment: Arvest Bank offers the enticing prospect of no down payment for eligible borrowers, alleviating the burden of accumulating a substantial upfront sum.
Eligible Degrees: The program is open to medical doctors (MDs), dentists (DMDs and DDSs), and residents who have completed their schooling and secured employment contracts.
Student Loan Deferment: Recognizing the significant financial obligations faced by medical professionals, Arvest Bank provides flexible options for deferring student loan payments, further enhancing affordability.
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Pros and Cons of Arvest Physician Loans
Like any financial product, Arvest Bank’s physician mortgage program comes with its own set of advantages and potential drawbacks. Weighing these factors can help you make an informed decision that aligns with your unique circumstances.
Pros
No Mortgage Insurance Requirement: One of the most significant benefits of Arvest Bank’s physician loan is the potential to avoid private mortgage insurance (PMI), even with a low or no down payment. This can translate into substantial monthly savings and long-term cost reductions.
High Loan-to-Value Ratio: With the option to finance up to 103% of the property’s value, Arvest Bank’s physician loan program offers a remarkable level of flexibility, enabling borrowers to cover closing costs and additional expenses without depleting their savings.
Generous Underwriting Criteria: Arvest Bank recognizes the unique financial challenges faced by medical professionals, particularly those with substantial student loan debts. As a result, the bank employs flexible underwriting guidelines, potentially increasing your chances of approval.
Cons
Limited Service Area: As a regional bank, Arvest Bank’s physician loan program is currently available only in Arkansas, Kansas, Missouri, and Oklahoma. If you reside outside of these states, you may need to explore alternative lender options.
Restricted Eligible Professions: While Arvest Bank’s physician loan program accommodates medical doctors and dentists, it might sidestep other healthcare practitioners like veterinarians or chiropractors, who qualify for physician mortgages at other banks.
Adjustable-Rate Mortgages: Arvest Bank primarily offers adjustable-rate mortgages (ARMs) for its physician loan program, with the exception of a 15-year fixed-rate option. ARMs can be attractive initially due to lower interest rates, but they carry the risk of rate fluctuations over time, potentially increasing your monthly payments.
Alternatives to Arvest Bank Physician Mortgage
Arvest Bank’s physician mortgage program presents an appealing option for medical professionals within its service area. However, it’s a good idea to compare offerings from other lenders to make sure you secure the best terms available. Consider these noteworthy alternatives:
Cadence Bank
Cadence Bank recently merged with BancorpSouth to become an even larger bank than it was before. It still has a limited footprint (southern states) but an excellent doctor home loan program where you can get 100% financing up to $1.5MM. Learn More: Cadence Bank Physician Loan Review
TD Bank
TD Bank’s physician mortgage is a popular choice among LeverageRx readers. The bank provides 100% financing up to $750k for both residents in training and attendings. The loan is for primary residents only. Learn More: TD Bank Physician Loan Review
Truist
Truist was formed through the combination of BB&T and SunTrust. The program provides full financing up to $1MM for the following designations: MD, DO, DPM, DDS, DMD. Learn More: Review of Truist Physician Loan
Key Takeaways
Buying a home can feel like a big step, especially for busy medical professionals. Luckily, options like the Arvest Bank physician loan are tailored to make things a bit easier. Arvest has a great option, if you live in one of the states they serve. Working with a physician mortgage broker like LeverageRx can greatly simplify your loan search. To get matched with the right lenders to help you find the best loan for your next home, request your rates today.
