Extraco Banks’ doctor mortgage program is known for its flexible financing options and lenient program criteria, including zero money down loan options, no private mortgage insurance (PMI) requirements, and more lenient debt-to-income (DTI) calculations.
This review highlights program eligibility requirements, helpful fast facts, and common FAQs. It also covers alternative physician loan programs and how they stack up against Extraco Banks.
About Extraco Banks
Extraco Banks was founded in Waco, Texas in July 1902. Extraco began as a cotton compress and warehousing business and the name Extraco is an acronym for Exporters and Traders Compress. Over the decades, Extraco has evolved and grown into Central Texas’ largest financial institution.
The bank is known for its support of local businesses and communities and excellent financial stability. Amid economic downturns, Extraco Banks has consistently survived and thrived.
Located between Dallas and Austin, Extraco is known for meeting customers’ high demands for innovative products and services. Its physician loan program assists medical professionals in the home-buying process, as these typically high-debt borrowers may not otherwise qualify for a conventional mortgage.
Extraco Banks is the 46th largest bank in the state of Texas and manages over $2 billion in assets. It provides full-service banking solutions to over 25,000 customers in the Central Texas region. Extraco has 31 locations in the area, including bank branches and mortgage and insurance centers.
- BBB score: A+
- CEO: Boyce Brown (Extraco Corporation) and Douglas L. Streater (Extraco Banks)
- JD Power Score: NA
- Parent company: Extraco Corporation
- Phone number: 1 (254) 318-2467 or 1 (800) 522-3972
- Services offered: Business and commercial banking, checking and savings accounts, credit cards, certificates of deposit (CDs), money market accounts (MMAs), financial planning, wealth management, retirement planning, insurance, consumer loans, student loans, mortgages, and home equity loans
Extraco Banks Physician Loan Fast Facts
Here are a few fast facts about the Extraco Banks physician mortgage loan program.
- Discounts: No current promotions available
- Financing options: 100% on loans up to $726,200, *97% up to $1 million, 90% up to $1.5 million
- Physician loan products: Fixed-rate and adjustable rate mortgages (includes traditional 30-year-fixed rate loans)
- Maximum loan amount: $1.5 million
- Qualifying degrees: MD degrees and other **select designations. Call 1 (254) 401-0559.
- Private mortgage insurance: PMI not required
*Based on financing information published on third-party consumer forums. Our editorial team has reached out to Extraco Banks for confirmation on these figures.
**Our editorial team has requested a list of all qualifying medical degrees for the Extraco Banks physician loan program. Any updated information provided will be published.
Extraco Banks Physician Loan Qualifications
Specialty loans for doctors are not a widely advertised product. In many cases, it may not be one pre-defined program with a set of uniform guidelines. Rather, it’s a lender making special allowances — through custom underwriting — for physicians and similar medical professionals.
Physicians often require these special considerations to purchase their first home. Commonly, they have significant student loan debt which would disqualify them for a traditional mortgage. Banks are willing to make an exception for physicians. As a group, they have high lifetime earning potential and very low default rates — much lower than the general public.
Extraco Banks’ physician loan qualifications are:
- Fair Credit: 660 minimum FICO score
- Down Payment: 0–15% down payment depending on the loan amount
- Owner-Occupied Property: Purchase or refinance of a principal residence (single-family structure). Lot and land loans are available in select counties
- Eligible Degree: Qualifying medical doctors, medical residents, or full-time medical instructors throughout the state of Texas
- Significant Savings: Not specified
- Verified Income: Full-time employment or future-dated employment contract
How to Apply
Here’s a general outline of what to expect when going through the home-buying process. The steps below let you know what you can expect with Extraco Banks or other financial institutions.
Get Pre-Qualified
This is the first step in which you’ll get a general idea of how much financing you may qualify for. The amount is a rough estimate based on your total income and total assets and debts overall.
The mortgage lender bases this information on the information you provide and a soft credit pull. This figure may be enough for you to start home shopping, but the numbers are far from finalized.
Prepare Your Documents and Review Your Credit Report
The mortgage process requires significant paperwork. Preparing documents upfront can be helpful. Documents (original or digital copies) you may need can include:
- Proof of identity: Copy of driver’s license, passport, or other government-issued identification, and Social Security number (SSN) card
- Proof of income: Recent pay stubs (within the past 30 days), tax returns and W-2 forms (past 1-2 years), 1099 forms for any self-employed income, income history, signed employment contract, proof of other sources of income such as alimony, child support, or royalties
- Proof of assets: Statements for checking and savings accounts (commonly past 2-3 months), investment account statements, titles to real estate or property assets
- Debt information: Information on outstanding debts such as car loans, student loans, other mortgages, alimony, child support, or other monthly repayment obligations
- Other documents for special circumstances: Divorce decrees, child support orders, copy of rental history, proof of recent bankruptcy discharge and any schedule of creditors, letters of explanation for credit inquiries or credit report disputes, or letters of explanation for gift funds or any unexplained assets
Along with gathering the needed documents, make sure to go over your credit history. Request a copy of the lender’s hard pull of your credit report. Look for any inaccuracies.
Get Pre-Approved
The pre-approval process is when you are formally given the total amount of financing that you qualify for. You can begin the pre-approval process online, or by speaking with a loan officer.
For Extraco Banks, their team will review your submitted documents and credit history. Additional paperwork may be requested.
The pre-approval figure a borrower receives is good for 90 days. Borrowers should hold off on getting pre-approved until they’re ready to place a serious offer on a home.
At this stage, many home buyers will have already begun looking at homes with a real estate agent. Some realtors, however, will not work with borrowers until they have a firm pre-approval letter.
Confirm and Lock in Your Rate
Beyond pre-approval, you will also need to confirm and lock in your interest rate. A loan officer will contact you regarding this figure, and you can ask any questions you have about down payment options, interest payments, interest rate caps, the appraisal, or loan terms in general.
The total home loan amount you are approved for is good for 90 days, but the interest rate is good for 45 days. And although you do lock in your rate, the final interest rate can vary at closing based on a number of factors including property type, location, changes in the market, or delays in your home closing.
Discover The Best Lenders Answer just a few questions about your career, where you're buying, and how much you want to borrow. Our service will then show you the exact programs you're eligible for from vetted physician loan specialists who will guide you through every step of the process – obligation-free!
Extraco Banks Physician Loan Alternatives
Many other banks and credit unions also offer physician home loan programs. Here are some other options to consider in addition to Extraco Banks.
1. First National Bank of Omaha
If your profession is not included in Extraco’s physician loan program, First National Bank of Omaha (FNBO) may be a good fit. FNBO extends doctor mortgages to doctors, healthcare workers, and other high-degree professionals. It will extend physician home financing to borrowers working in the following occupations:
- Chartered Financial Analyst (CFA)
- Certified Public Accountant (CPA)
- Certified Registered Nurse Anesthetist (CRNA)
- Dental Surgeon (DDS)
- Dentist (DMD)
- Doctor of Osteopathy (DO)
- Veterinarian (DVM)
- Attorney (JD)
- Medical Doctor (MD)
- Nurse Practitioner (NP)
- Physician Assistant (PA)
FNBO’s program offers 100% financing up to $850,000 or up to $1.5 million with a down payment.
Although the bank is headquartered in Nebraska, FNBO can provide funding for your dream home in Texas. The bank offers physician loan financing in NE, TX, CO, IL, IA, KS, NE, SD, and WY.
FNBO offers variable-interest-rate and conventional loans and will waive its PMI requirement regardless of your home loan amount or total down payment.
Participants must be active FNBO customers with an account in good standing in order to apply, but interested borrowers can open an account online.
2. KeyBank
Ohio-based KeyBank offers a physician loan program that will provide up to $3.5 million in financing for the purchase of a single-family residence or other owner-occupied home.
The program is open to Doctors of Medicine (MD), Doctors of Osteopathic Medicine (DO), Doctors of Podiatric Medicine (DPM), Doctors of Dental Surgery (DDS), and Doctors of Dental Medicine (DMD). Interns, residents, and fellows in these areas of practice may also be eligible.
While Key Bank does not have any zero money-down options, the bank does offer substantially more financing than Extraco Banks and many other institutions. Additionally, the down payment requirements are relatively lenient.
3. First Horizon Bank
Tennessee-based First Horizon Bank operates branches in Texas and 14 other states and has a reputable physician loan program.
Qualified borrowers can receive 100% financing for up to $750,000, or financing up to $2.5 million with a down payment. Additionally, First Horizon will exclude student loans from the borrower’s DTI ratio if the loans are in good standing and on deferment for 12 months or more. The typical requirement for private mortgage insurance is also waived.
First Horizon’s program is, however, open to a narrow range of professions. Eligible medical practitioners include Medical Doctors (MD), Osteopath Doctors (DO), Podiatrists (DPM), and Oral and Maxillofacial Surgeons (DDS and OMS). Additionally, borrowers must be current First Horizon customers and have an active checking account. Perspective home borrowers can fulfill this requirement by opening an account online though.
4. Bank of America
Bank of America (BOA) is a solid choice for medical professionals seeking convenience. After Chase Bank, BOA is the second-largest bank in the nation with over 3,800 branches.
The BOA doctor loan program offers financing for up to $2 million for practicing doctors or dentists with an MD, DDS, DMD, OD, DPM, or DO designation. Fellows and residents may also be eligible.
While there are no 100% financing options, borrowers can finance up to $850,000 for a low down payment of 3%. Down payments of 5% to 15% are required for additional financing. Additionally, BOA will exclude student loan payments when calculating a borrower’s debt-to-income ratio and waive all PMI requirements.
5. U.S. Bank
U.S. Bank offers an extensive physician loan program that provides home financing and refinancing options in all 50 states. Additionally, the bank offers lender credits (points) for existing customers for a discount of $1,000 off loan closing costs or other related fees.
The program features fixed-rate and adjustable-rate mortgage options. While the bank does not have any zero money-down home loans for doctors, it will finance up to 95% of loans of up to $2 million. For a higher down payment, borrowers can take out up to $2.5 million.
Qualifying participants must have a minimum 710 credit score, at least three (3) to 12 months of cash reserves (depending on the loan amount), and have a qualifying degree. The U.S. Bank program is open to professionals with a Medical Doctor (MD), Doctor of Osteopathy (DO), or Juris Doctor (JD) degree.
While loan terms are generally quite competitive, U.S. Bank does not exclude medical debt when calculating your debt-to-income ratio. If you have substantial student loan debt, U.S. Bank may not be the best option.
Pros and Cons
Here’s a recap of the pros and cons of the Extraco Banks Physician Loan Program.
Pros
- 100% financing options for homes, land, or lots. Most similar homeownership programs will not extend financing for land or lots.
- Fixed-rate and adjustable-rate loan options. This includes 30-year fixed-rate & 7/1 ARM loan options.
- No PMI Typically required for down payments on less than 20% of the total loan amount, Extraco waives this requirement for doctor loan borrowers.
- Lenient credit score requirements. The minimum score of 660 is about the lowest you’ll find anywhere; most other programs require a score of at least 700.
Cons
- Program is only available in Texas.
- Other doctor mortgage loans offer more financing. Other programs may offer $3.5 million or more, and some even have no upper limit.
Frequently Asked Questions
What is Conditional Pre-Approval?
Conditional pre-approval means you are pre-approved for a loan amount but you must fulfill certain stipulated conditions. You’ve almost got it.
A bank may impose conditions or caveats like paying off a specific debt, closing an open line of credit, or not opening any new lines of credit until closing on your home loan.
Are Physician Loans Only for U.S. Citizens?
No, banks that offer physician loans will extend them to American citizens or Green Card holders. Some financial institutions, like Flagstar Bank, may even offer physician mortgages to H1-B visa holders.
Can Physicians Get FHA Loans?
Yes, physicians who are first-time homebuyers can potentially qualify for and obtain FHA financing.
The U.S. Department of Housing and Urban Development (HUD) offers Federal Housing Administration (FHA) loans for first-time homebuyers and lower-income individuals.
There are no income restrictions for doctors or other borrowers purchasing their first home. Often, FHA loans are not a good choice for physicians though. It may not offer enough funding for the home you want. The maximum home price or mortgage limit for an FHA loan ranges from $497,257 to $1.15 million – depending on the market.
Assuming these upper limits do provide enough financing, physicians tend to have too much student loan debt to qualify for an FHA loan. This is because the FHA program does not make special exemptions for doctors the same way that doctor loan programs do, and new doctors may have student loan debt that exceeds their first-year salary. Additionally, PMI is required for any down payment of less than 20%.
Is a Physician Mortgage a Jumbo Loan?
Possibly — it depends on how much a physician borrower is taking out. A jumbo loan is a mortgage used to finance a residential property too expensive to qualify for a conventional, conforming loan.
The Federal Housing Finance Agency (FHFA) determines the maximum amount for a conforming loan. The upper limit is $726,200 but for some high-cost areas, the conforming amount be as high as $1,089,300 — or even higher yet in Hawaii, Alaska, and other high-cost areas.
A mortgage loan that exceeds the conforming limit is called a jumbo mortgage. Like FHA or other mortgages, a jumbo loan can be fixed-rate or adjustable-rate, however, jumbo loans are typically harder to qualify for than conforming loans.
