Old National Bank Physician Mortgage: 2024 Review
What is Old National Bank?
Old National Bank, formally known as Old National Bancorp, is headquartered in Evansville, Indiana. Established in 1834 and initially serving the financial needs of local residents and merchants, Old National has grown substantially over the decades.
Throughout its history, Old National has successfully navigated through numerous economic challenges, including the Panic of 1837 and the Great Depression following the 1929 Wall Street crash. Despite these hurdles, the bank has remained robust, expanding its reach and services significantly after World War II.
In recent years, Old National announced a merger with First Midwest Bank in June 2021, which was completed in February 2022. This merger formed a major entity with roughly $48 billion in assets, dual headquarters in Evansville and Chicago, and expanded access to banking centers. Following a partnership with CapStar Bank in 2024, Old National’s assets increased to $53 billion, reinforcing its position as a significant player in the banking sector.
Today, Old National stands as the sixth largest commercial bank headquartered in the Midwest and ranks among the top 30 U.S. banks. With a strong community focus, Old National’s team members actively participate in local initiatives, contributing over 57,000 volunteer hours to more than 1,500 organizations in 2023 alone. The bank’s commitment to ethical banking, financial education, and inclusive practices has earned it numerous accolades, reflecting its dedication to exceeding client expectations and supporting the communities it serves.
Old National Bank’s Physician Mortgage
Old National Bank caters extensively to healthcare professionals, offering tailored financial solutions that align with their unique needs. For physicians, dentists, and professors, Old National provides specialized Physician Mortgage solutions. These include up to 100% financing for primary residences with no private mortgage insurance required, addressing the distinctive financial situations faced by medical and academic professionals. Additionally, the bank’s comprehensive services span across retail and commercial banking, including wealth management, investment services, and more specialized financing options like tax-exempt direct purchases and syndicated transactions.
Is an Old National Bank Loan Right for You?
Eligibility Criteria
At Old National, the focus is on catering to the unique needs of healthcare professionals, including physicians, dentists, and professors. Whether you are a first-time homebuyer or looking to refinance, Old National offers a variety of tailored options. Key criteria include your professional status and the stage of your career, such as if you have completed your residency or fellowship, or if you are employed by or joining a medical practice.
Loan Amount and Down Payment Options
Old National’s Professional Mortgage provides up to 100% financing for primary residences for eligible borrowers, which includes doctors, dentists, and professors, among others. This means you can purchase your home with no private mortgage insurance required, making it easier to get started with homeownership. Loan amounts can reach up to $2,000,000, depending on your qualifications and the type of loan you choose .
Interest Rates and Repayment Terms
The bank offers both fixed and adjustable-rate mortgages, allowing you to choose the option that best suits your financial situation and future plans. For those who prefer stability and predictability in their monthly payments, a fixed-rate mortgage might be the right choice. Conversely, an adjustable-rate mortgage (ARM) could be suitable if you anticipate a future increase in earnings or plan to move or refinance before the rate adjusts.
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Pros and Cons of Old National Bank Physician Mortgage
Pros
Tailored Financial Solutions: Old National Bank offers specialized Professional Mortgage options designed specifically for healthcare professionals, including physicians, dentists, and professors. These solutions cater to your unique financing needs, allowing you to purchase your primary residence with up to 100% financing and no private mortgage insurance required.
Flexible Loan Terms: You have the choice between fixed and adjustable-rate mortgages, providing flexibility based on your financial situation and future plans. This includes 100% financing for purchase transactions up to $750,000 and loan amounts that can reach up to $2,000,000.
Eligibility for Various Professionals: The bank’s mortgage options are available not just to physicians but also to dentists, veterinarians, and professors, acknowledging the diverse needs within the medical and academic communities.
Cons
Geographical Limitation: Old National Bank’s services are primarily concentrated in the Midwest. This regional focus might limit accessibility for potential borrowers located outside this area.
Special Programs Primarily for Community and Heroes: While Old National offers favorable terms through its Community Experts and Heroes Program, these benefits are targeted at a specific group of professionals and first responders, which might not encompass all potential borrowers.
Alternatives to Old National Bank Physician Mortgage
Truist
Truist provides a physician loan program tailored specifically for new and established medical professionals. For residents, interns, and fellows, you can access up to $1 million with low down payment requirements. Practicing doctors and dentists, within the first 15 years of their practice, benefit from 100% financing on loans up to $1 million, 95% financing on up to $1.5 million, and 89.99% financing on up to $2 million. Importantly, Truist does not require private mortgage insurance (PMI) for these loans, and the program supports both purchase and refinance transactions. Learn More: Review of Truist Physician Loan
First Horizon Bank
First Horizon Bank offers a medical professional mortgage with notably flexible terms. You can enjoy 0% down payment on loans up to $750,000 and low down payment options on higher loan amounts. To qualify, you must have or open a First Horizon checking account and maintain a minimum credit score of 680. Additionally, you can close on a home if you have a signed offer for a job starting within 180 days, making it a practical option for soon-to-be-employed medical professionals. Learn More: First Horizon Physician Mortgage Review
Regions Bank
Regions’ Doctor Mortgage Program is designed to cater to the needs of residents, fellows, practicing doctors, and dentists. This program is attractive as it does not require PMI and does not include student loans in your debt-to-income ratio calculation. You can obtain 100% financing on mortgages up to $750,000, or opt for a 5% down payment on loans up to $1 million. Regions also provides several mortgage calculators to aid in assessing your borrowing and home-buying capabilities. Learn More: Regions Bank Physician Mortgage Review.
Key Takeaways
Old National Bank offers a comprehensive range of services tailored to medical professionals, including up to 100% financing for primary residences without the need for private mortgage insurance, making it an attractive option for physicians, dentists, and professors. The bank’s Professional Mortgage options are specifically designed to meet the unique financial needs of these professionals, providing both fixed and adjustable-rate mortgage options.
To see your options from Old National and other physician mortgage lenders, work with a broker like LeverageRx – click here to see your options.
Physician Mortgage FAQ
1. Do physicians receive lower mortgage rates than others?
No, physicians do not receive lower mortgage rates than the general public. However, physician mortgage loan programs, also known as doctor mortgage loans, are appealing because they often do not require a down payment or primary mortgage insurance (PMI). This can significantly reduce the initial costs associated with buying a home.
2. How does a physician loan differ from a conventional loan?
A physician loan is similar to a conventional loan but offers much more lenient requirements specifically for doctors and other medical professionals. These loans typically feature lower interest rates and do not require private mortgage insurance fees, making them particularly advantageous for those in the medical field.
3. Are mortgage bankers currently facing financial difficulties?
Yes, mortgage bankers have been facing financial challenges recently. Throughout 2022 and into the first half of 2023, the average mortgage lender incurred losses on every mortgage originated. In the first quarter of this year, the average loss per loan was $1,972, which improved to $534 per loan in the second quarter.
