Dr. Home Finance: Arvest Bank’s 2024 Physician Loan

A Comprehensive Guide for Medical Professionals in the Mid-South Region

Introduction

Navigating the home-buying process can be particularly challenging for medical professionals due to the unique financial scenarios presented by medical school debt and the early stages of their careers. Arvest Bank’s physician loan program offers tailored solutions designed specifically for doctors in Arkansas, Kansas, Missouri, and Oklahoma. This detailed review by Dr. Home Finance will break down the key features, benefits, and considerations of the Arvest Bank physician loan.

Overview of the Arvest Bank Physician Loan

Arvest Bank has been serving the Mid-South region since 1961, growing from a local bank to a significant regional player with over 200 locations. Their physician loan program is notable for allowing financing up to 103% loan-to-value (LTV), covering not just the purchase price but also taxes, insurance, and closing costs, which is a rare feature in the industry.

Key Loan Features:

• 103% LTV Financing: Covers the full sale price plus an additional 3% for closing costs and related expenses.
• No Private Mortgage Insurance (PMI) Required: This can lead to significant monthly savings.
• Variety of Loan Products: Offers both fixed and adjustable-rate mortgages to suit different financial plans.

Pros of the Arvest Bank Physician Loan

• No Down Payment Required: Ideal for new doctors or residents who may not have significant savings.
• Flexible Underwriting: Considers the unique financial situations of medical professionals, including student loans.
• Comprehensive Financing: The ability to roll closing costs into the mortgage reduces upfront cash needed at closing.

Cons to Consider

• Limited Geographic Reach: Only available in four states, which restricts access for many potential borrowers.
• Lack of Transparency: Must contact a loan officer to get detailed information about loan terms and qualifications.

How to Apply for an Arvest Bank Physician Loan

1. Pre-Qualification with a Loan Officer: Initiate the process by discussing your financial details with a loan officer to gauge what you might qualify for under the Arvest Bank physician loan program.
2. Document Preparation: Gather necessary documents including recent pay stubs, W2 forms, employment contracts, bank statements, and a government-issued ID.
3. Complete a Loan Application for Pre-Approval: After choosing to proceed with Arvest, complete the formal application and submit all required documentation for underwriting.
4. Loan Approval and Rate Lock: Once pre-approved, work with your loan officer to lock in your interest rate and clear any remaining underwriting conditions.
5. Closing the Loan: After finding a property and signing a purchase agreement, complete the final underwriting steps, including the property appraisal and title work, leading up to the loan closing and your home purchase.

Alternatives to Arvest Bank Physician Loan

For those outside Arvest Bank’s service area or seeking different terms, other financial institutions offer competitive physician loans:

• Bank of America: Provides up to $2 million with lower down payment options ranging from 3% to 15%, available nationwide.
• TD Bank: Offers up to $2 million with down payments as low as 10.01%; no down payment is required for loans up to $750,000.
• Fifth Third Bank: Supports up to $1 million with no down payment for new doctors, with broader lending up to $2 million for established physicians.
• BMO Bank: Allows down payments as low as 5% on loans up to $1.5 million, catering to residents, fellows, and new doctors.

Frequently Asked Questions

• How do physician loans differ from traditional mortgages?
  • Physician loans often provide benefits like zero down payment, no PMI, and flexible underwriting that takes a doctor’s future earnings potential into account.
• Can doctors qualify for loans more easily?
  • Yes, due to specialized loan programs like those from Arvest Bank, doctors can often bypass some traditional lending impediments, such as high student loan debt.
• What are the typical interest rates for physician loans?
  • While competitive, rates for physician loans may be slightly higher than conventional loans due to the increased risk associated with higher loan values and lower down payments.
• What is required to qualify for an Arvest Bank physician loan?
  • Qualification requirements include good credit, a medical degree, and sufficient income to cover mortgage payments. Specific details should be confirmed directly with a loan officer at Arvest Bank.

Enhancing Your Homeownership Journey

As you move forward, consider these additional steps to enhance your home-buying experience:

• Financial Planning: Work with a financial advisor to align your homeownership goals with your overall financial plan, including retirement savings, investment strategies, and debt management.
• Home Search: Collaborate with a real estate agent who understands the healthcare industry’s demands and can find a home that fits your lifestyle and commute requirements.
• Home Inspection and Appraisal: Ensure thorough inspections and appraisals are done on your prospective home to avoid unforeseen issues that could impact the value and your enjoyment of the property.
• Long-Term Considerations: Think about potential changes in your life and career that might influence your housing needs in the future, such as expanding your family, changing jobs, or relocating.

Staying Informed and Prepared

Stay proactive about understanding all aspects of your mortgage terms and the home-buying process. Regularly communicate with your loan officer and real estate agent to keep abreast of any changes or necessary actions. Keep your documentation organized and accessible to avoid delays in the mortgage process.

Building a Network

Develop relationships with professionals in the real estate and financial sectors who are experienced in working with medical professionals. Their expertise and advice can be invaluable, especially when navigating complex situations unique to your profession.

Final Advice

Arvest Bank’s physician loan offers a compelling solution for doctors looking to purchase homes in the Mid-South region. With benefits tailored to the unique financial and professional situations of medical practitioners, this loan can provide the support needed to purchase your ideal home while balancing the demands of your medical career.

Ready to Begin?

If you’re ready to take the first step towards homeownership with the Arvest Bank physician loan, contact one of our verified bankers today. With their expertise, you can explore the best options available, ensuring you find a mortgage solution that fits both your financial situation and your lifestyle as a medical professional.