Getting a mortgage as a new doctor can be difficult. Most lenders would turn you down if you have a lot of debt or have just started your job.
However, the Regions Bank physician loan offers flexible options to borrow $1 million or more, sometimes with no down payment. The program is specifically for medical professionals, namely doctors, helping you secure a home early in your career.
Regions Bank Physician Loans
Regions Bank offers physician loans for purchase or refinance on primary residences. They extend their loan on single-family homes, condos, and multi-family units.
Lenders that offer physician loans each have different requirements and features. Here’s what you can expect from Regions Bank.
Availability by Location
Regions Bank offers its physician loan programs in the following states:
- North Carolina
- South Carolina
Like most lenders, Regions Bank limits its loan program to certain medical professionals, including residents, fellows, medical doctors, dentists, and doctors of osteopathy. You can also close your physician loan with Regions Bank 90 days before you start a position if you have an employment contract beginning within that time.
Regions Bank offers competitive physician loan interest rates, but they will likely be higher than traditional loans because of the risk they create. For example, doctors borrowing 90% to 100% of a loan amount over $1 million is risky for lenders. Regions Bank and other lenders charge slightly higher interest rates to compensate for the risk.
Regions Bank offers loan amounts up to $1 million. This is lower than many lenders offering physician loans, but it can prevent you from getting over your head in debt.
Private Mortgage Insurance
Like most lenders, Regions Bank doesn’t charge PMI on physician loans. This is true even if you don’t make a down payment. Not having PMI could save you hundreds of dollars a month and thousands of dollars a year.
Checking your credit is the best way for Regions Bank to ensure you are a good risk. Since they lend 100% on large loan amounts, they require high credit scores to ensure you can afford the loan. In most cases, they require a 700+ credit score.
Down Payment Requirements
The down payment is your investment in the property. But unfortunately, it also keeps many new doctors from securing conventional financing because they don’t have enough money saved for the down payment.
Luckily, Regions Bank requires no down payment on loans up to $750,000 and 5% down on loans up to $1 million.
Regions Bank excludes deferred student loan debt from your debt-to-income ratio. This can make the difference between getting approved and declined for a loan. If you’re fresh out of med school, you may still have deferred loans that, when not included in your debt totals, can allow you to meet the DTI requirements for a mortgage.
How to Apply for a Regions Physician Mortgage Loan
Applying for a physician’s loan with Regions Bank is simple. However, having all your documentation and information ready is important to make the process go as quickly as possible. Since you can close a physician loan 90 days before you start a position, as long as you have an employment contract, you can start the process early.
Here’s how to apply.
‘Inquire Now’ Button
To apply online, click the ‘Inquire Now’ button on the Region’s Bank website and send your information to get pre-qualified.
In your email, send your name, city, and state you intend to purchase the home, phone number, and email. A representative will contact you to get the mortgage loan process started.
Collect and Submit Documentation
Before applying for the Regions Bank Physician mortgage loan, consider collecting the following documentation to have available for the lender:
- Paystubs – You must prove your income. If you already started working, provide your most recent paystubs for the last 30 days.
- Employment contract – If you haven’t started working yet, provide a copy of the employment contract you signed to start your new position.
- Degree – You must supply proof of your degree or diploma to ensure you work within the approved professions.
- Bank statements – If you’re required to put money down on the home, you must provide bank statements to prove where the money will come from, proving you have enough assets.
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!
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!
Pros and Cons
All physician mortgage loans have pros and cons. Understanding the good and bad sides of applying for a Regions Bank physician loan can help you decide if it’s best for you.
- Relaxed debt-to-income treatment – Excluding any deferred student loan debt can help you get approved easier for a physician loan. Regions Bank is flexible in this area, allowing you to qualify with some student loan debt, especially if you aren’t obligated to make payments yet.
- Low down payments – Regions Bank allows doctors to buy a home with no money down on loans up to $750,000 or 5% down on $1 million. That’s much more relaxed than most loan programs allow.
- Start working on an employment contract – You can close your mortgage loan before working. This allows you to get organized and settled before starting your new career.
- Open to many positions – Regions Bank allows physician loans to fellows, residents, and established doctors, making it easy to get a loan early in your career.
- Limited availability – Regions Bank doesn’t provide loans in all states. You’d have to try a different lender unless you live in one of the 14 states they lend in.
- You can spend too much – It’s easy to get over your head when you don’t need a down payment and the requirements are flexible. However, buying more than you can afford early in your career could start you off on the wrong foot.
- Limited doctors are eligible – The Regions Bank physician loan isn’t available to all doctors, including many specialists.
Regions Bank Alternatives
Regions Bank is a popular bank for physician mortgage loans, but there are alternatives to consider if you don’t live where they serve or don’t qualify for their program.
Fifth Third Bank
Fifth Third Bank offers physician loans on primary residences, such as single-family homes and condos. The program is open to residents, fellows, and established doctors, which they consider any doctor practicing for at least one year.
Doctors can get a loan with no money down on loan amounts up to $750,000 or a small down payment on higher loan amounts, but new doctors can only borrow up to $1 million, while established doctors can borrow up to $2 million.
Huntington Bank offers physician mortgage loans for purchase or refinance, but only on primary residences. They offer loan amounts up to $2 million with low down payments, but they require all doctors that qualify to have a certain amount of liquid assets to prove they can afford the loan.
The Huntington Bank program is open to MDs, DOs, DMDs, DVMs, and DDSs. Like at Regions Bank, you can close your loan with an employment contract before starting your position, and they don’t charge PMI.
Regions Bank is a good option for physician mortgage loans. Here are some more questions people ask about Regions Bank physician loans.
How Long Is the Approval Process for a Physician Loan With Regions Bank?
Regions Bank takes 30 to 45 days to close a physician mortgage loan like most lenders. However, your closing might take more or less time. It depends on the workload and how quickly you provide the required information. The faster you respond to requests, the faster you can close the loan.
Is Regions Bank a Reputable Physician Mortgage Loan Lender?
Regions Bank is a good option for a physician mortgage loan because they offer a variety of options, making it easy for doctors to get approved. In addition, if you need other personal or business banking services, Regions Bank offers many options, helping you keep all your banking in one place.
Does Regions Bank Offer a Mortgage Refinance?
Regions Bank offers purchase and refinance mortgages. This makes it easy to either use them to refinance an existing mortgage you have with another lender or even with them if rates are lower or you qualify for a better program.