Key Takeaways:
- Arvest Bank’s physician loan can offer 103% loan to value for a loan amount up to $1.25 million.
- Physicians and dentists might qualify with no private mortgage insurance.
- A 15-year fixed-rate mortgage, as well as a 5-, 7-, or 10-year adjustable rate, amortized over 30 years, are available options.
Physician mortgage loans help doctors, dentists and other specific types of medical professionals get approved for a home loan with attractive benefits. These types of mortgage loan programs offer doctors low down payment options, plus no mortgage insurance, making it a sweet deal.
Doctors and dentists generally command a high income. But they might have high student loan debt balances as well. Some mortgage lenders look at this type of debt differently, so homeownership is within reach. Arvest Bank is one of these.
Arvest Bank is a financial services provider that has served Arkansas, Kansas, Missouri and Oklahoma customers for over 60 years. Read on to learn more about the Arvest Bank physician loan.
1. Arvest Bank physician mortgage details 2. Arvest Bank physician mortgage loans: pros and cons 3. How to apply for an Arvest Bank physician loan 4. Should you apply for a physician mortgage with Arvest Bank?
Arvest Bank physician mortgage details
If you’re interested in an Arvest Bank physician loan, here’s a rundown on the important details and what to consider when working with this local lender.
| Minimum down payment | Zero down for financing a single family primary residence |
| Residents/Fellows allowed | Yes |
| Maximum loan amount | 95% LTV for up to $1.75 million |
| Construction loans | Yes (but not specific to the physician loan program) |
| How they treat student loans | Increases debt-to-income ratio to 50% |
| Requirements to keep low rate | Not disclosed |
| Degrees that qualify | DO, MD, DMD, DDS, medical residents |
| Eligible States | Arkansas, Kansas, Missouri, Oklahoma |
Get Quotes for Your Doctor Mortgage
What mortgage product do you need?
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SelectAttending PhysicianFellowResidentDentist / Dental SpecialistLawyerNurse Anesthetist (CRNA)Nurse PractitionerOptometristPharmacistPhysician AssistantPodiatristVeterinarianMed or Dental Student
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Preferred Down Payment
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Arvest Bank physician mortgage loans: pros and cons
Doctor loans help you buy a home and can come with attractive terms that can be tough to beat compared to a conventional mortgage. Although it can be advantageous in many ways, it’s still a form of debt. Proceed with caution and understand the pros and cons before taking out a significantly large loan.
Arvest Bank physician mortgage loan pros
No mortgage insurance requirement
One of the main perks of an Arvest Bank physician loan is that you can put 0% to 5% down and not be required to pay private mortgage insurance (PMI). Most conventional mortgage lenders require PMI if you fail to provide at least a 20% down payment, adding to the cost of homeownership.
Having access to a loan with a low down payment minimum and no PMI is a major benefit for doctors and dentists. It makes buying your dream home more accessible.
High loan-to-value ratio
Arvest Bank physician loans stand out as the company offers up to 103% loan-to-value (LTV). Your LTV refers to your home mortgage relative to the value of your home. In other words, in this scenario, you get 100% financing and then some.
That additional 3% must be used by prospective homeowners for closing costs, insurance or taxes. This can be separate from realtor fees.
Most of your costs to finance a home purchase are covered through the Arvest Bank physician loan. This can make homeownership a reality with nothing down, which can be a major selling point for residents who are just starting out.
Underwriting criteria is generous
When applying for loan products, lenders look at different criteria to determine if you’re a good borrower candidate. For example, the mortgage company will look at your credit score, debt-to-income (DTI) ratio, income and other factors.
For doctors and dentists with especially high student loan balances and average credit, these determining factors can be limiting. This is also true for residents who might not be earning the big bucks quite yet.
But the Arvest Bank physician loan allows for a higher DTI ratio, up to 50%. This means that your total debt obligations can be up to 50% of your income. Generally, to get a mortgage the max DTI ratio you can have is between 36% and 43%.
Also, Arvest has a minimum credit score requirement that is slightly lower than the bare minimum required by many other lenders, only 640 to 660. Residents require at least a 640, while practicing physicians require at least a 660. According to the bank’s website, Arvest’s physician loan program has flexible guidelines when it comes to underwriting. All of these factors combined might boost your approval odds and help you get a mortgage for your dream home.
Arvest Bank physician mortgage loan cons
Only available in select states
Arvest Bank physician loans can have beneficial terms for prospective borrowers, but only if you live within its designated service area. Arvest Bank is a regional bank that’s community-based, so it only serves a handful of states including Arkansas, Kansas, Missouri and Oklahoma. Unless you live in one of the states above, you likely won’t qualify for the bank’s physician loan program.
Limited professions qualify
Some physician mortgage loan lenders are generous with their definitions of doctors and may include veterinarians or other medical professionals. Arvest Bank limits who is eligible for the physician loan program to doctors and dentists. Other types of doctors or healthcare providers might not qualify for this particular physician mortgage loan program.
Most loan options are adjustable
Arvest Bank offers a 5-, 7-, and 10-year ARM, amortized over 30 years. Through these adjustable-rate mortgages, your interest rate starts out fixed for the initial number preceding the ARM (so five, seven or 10 years) and then is adjustable through the remainder of your term.
Its starting rate might be attractive, but when it adjusts, rates vary widely based on economic conditions. If rates continue to go up, your interest rate will likely rise as well, adding to your mortgage costs. However, if you are averse to an ARM, Arvest Bank’s physician loan program does offer a 15-year fixed-rate term.
How to apply for an Arvest Bank physician loan
When looking for a physician mortgage loan, compare several mortgage products to look at terms, rates, pros and cons of each lender. If after doing your own research, you decide to move forward with Arvest Bank, here are some steps to get started.
Step 1: Contact a mortgage loan officer or specialist with Arvest Bank
To get started, contact the Arvest Bank mortgage division at (855) 997-6567 or visit its website and enter your zip code to find your local branch. This can help you get started with a specialist who can support you in the application process. Make sure to have your information on hand such as name, address, the loan amount you’d like, etc.
Step 2: Prepare application documentation
Getting approved for a physician mortgage loan requires providing some paperwork. Specifically for a physician loan, you likely need to provide your medical license, employment history and current employment contract. You’ll also need to provide your financials, so that may include:
- Pay stubs showing your income.
- Tax returns.
- Bank statements.
Getting this prepared ahead of time can expedite the process and make sure you have everything ready to go.
Step 3: Read the fine print and accept the mortgage loan
Once you submit your application, you’ll be notified if you’re approved or denied. If you get the green light, be sure to read the fine print, understand closing costs, timelines, etc. and accept the mortgage loan.
The good news is that Arvest Bank does the loan servicing on these loans, so you’ll stick with them during the entirety of your repayment. Plus, you don’t have to worry about any prepayment penalties.
Should you apply for a physician mortgage with Arvest Bank?
If you’re a resident or a current physician or dentist, physician mortgage loans are specialized financial products catered for you that come with generous benefits. Compare the best physician mortgage loans and review monthly payments, interest rates, loan terms, taxes, insurance, real estate in your area, and more before getting started.
Look at your take-home budget and what you can comfortably afford. You can use mortgage calculators during the process to help out. If you want support and to review all options, fill out the form below to get more information.
Get Quotes for Your Doctor Mortgage
What mortgage product do you need?
Home Purchase Home Refinance
Your Occupation As Of September 2023
SelectAttending PhysicianFellowResidentDentist / Dental SpecialistLawyerNurse Anesthetist (CRNA)Nurse PractitionerOptometristPharmacistPhysician AssistantPodiatristVeterinarianMed or Dental Student
Are You Currently Working With a Realtor?
Yes No NEXT
Home Price Range
Select$0 to $200,000$200,001 to $400,000$400,001 to $600,000$600,001 to $800,000$800,001 to $1,000,000$1,000,001 to $1,500,000$1,500,001 to $2,000,000More than $2,000,000
Preferred Down Payment
Select0% Down5% Down10% Down15% Down20% Down
Stage You're At in the Home Buying Process
When Do You Want a Mortgage Approval?
SelectNow1 to 3 months4 to 6 months7 to 12 monthsMore than 12 months
How Many Banks Would You Like Quotes From?
Select123456 or more
Any Bankruptcies or Short Sales?
Yes No NEXT
Full Name
Phone Number
State Where You Plan to Purchase
SelectAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming
Metro Area Where You Plan to Purchase
Citizenship Status
US Citizen Permanent Resident Foreign Citizen
Communication Preference
Phone calls OKNo phone calls, text onlyEmail only
Would You Like to Add Any Additional Details?
Yes No GET MY QUOTES Sending request… Request sent. We’ll reach out by email with next steps
Original Article