Cadence Bank Physician Mortgage Loans: A Comprehensive Review

Going through medical school takes a lot of time and can result in a high amount of student loan debt. This can make it difficult to get a conventional mortgage, where your debt-to-income ratio and lack of down payment can limit your choices.

For some medical professionals, though, it’s possible to use mortgage loan programs aimed at helping new professionals access flexible underwriting criteria. Cadence Bank offers this type of program.

Cadence Bank physician mortgage loan details 

Cadence Bank was founded in Mississippi out of the back of a hardware store. It grew to other locations and merged with BancorpSouth Bank. Today, the headquarters are in Tupelo, Mississippi and Houston, Texas. It’s a member-FDIC and offers bank accounts and branches in nine states.

Cadence Bank offers physician mortgage loans to various medical professionals, including doctors, dentists and others.

Minimum down payment	0% down for a primary residence
Residents or fellows allowed	Yes
Maximum loan amount	$2.5 million
Degrees that qualify	MD, DDS and DO
Eligible states	AL, AR, CO, FL, GA, KY, LA, MS, MO, NC, OK, SC, TN, TX, VA

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Cadence Bank physician mortgage loan: Pros and cons 

As a medical professional, meeting the requirements of conventional loans can be difficult. A physician mortgage loan can help you get around some of the criteria. Many home lenders expect doctors and other medical workers to do well in the future and be able to afford the costs of homeownership.

Review the pros and cons of Cadence Bank as you make a decision about using one of their physician mortgage programs. 

Cadence Bank physician mortgage loan pros

Cadence Bank offers special home financing options for doctors and others that work in other medical fields.

Up to 100% financing

Cadence Bank offers a no down payment option on homes up to $1.25 million. It opens up opportunities for new homeowners to enter the real estate market without the initial financial barrier of a large down payment.

Variety of medical professions are eligible

Cadence Bank allows a variety of professionals to take advantage of this loan program. Some of the eligible professionals include:

• Doctor (MD)
• Dentist (DDS and DMD)
• Osteopathic doctor (DO)
• Opthalmologists
• Medical residents
• Medical fellows

For those who meet the requirements, this could be a way to become a homebuyer sooner than expected.

No PMI

Many doctor mortgage products usually don’t charge private mortgage insurance (PMI). Even if you don’t put 20% of your purchase price down when getting your jumbo physician loan, you can still avoid PMI related to how much home equity you have with a Cadence Bank physician mortgage.

Use a physician mortgage loan calculator to run the numbers to see what makes sense in your situation and whether it makes sense to get a big mortgage when you don’t have to worry about PMI.

Cadence Bank physician mortgage loan cons

As you review mortgage loan originators, don’t forget about the downsides. Depending on the situation, the cons might outweigh the pros, and you might want to look at alternative banks like KeyBank, TD Bank, UMB, BMO or Regions Bank. 

Small down payments can lead to higher monthly payments

Physician mortgage programs offer the ability to get a bigger home than you might otherwise qualify for. However, this can cause problems during repayment. You might have higher monthly payments and feel house poor as a result. Additionally, depending on the situation, you could end up with a higher interest rate.

Limited doctor loan program options

While you can get a fixed-rate mortgage or an adjustable-rate mortgage, Cadence Bank doesn’t provide information about construction loans or refinancing. This might reduce your ability to get the house you want with this bank.

Limited availability 

You might not be eligible for a mortgage loan from Cadence Bank programs if you live outside the service area. Cadence Bank only has branches in nine states, and the offer of doctor mortgage programs might be further limited. Other home loan lenders might offer physician loan programs, as well as other products, like FHA loans and VA loans, to people in a variety of states.

How to apply for a Cadence Bank physician mortgage loan 

Compare three to five lenders as you decide where to get your home loan when you decide to buy as a medical professional. Look at closing costs, credit approval requirements, underwriting and other terms to determine which is best for you. Figure out whether a physician mortgage loan is the right move or whether you should consider a traditional home loan or another type of mortgage, such as an FHA loan, VA loan or USDA loan.

A loan officer can help you understand how to move forward, but here are the basic steps:

Step 1: Contact Cadence Bank

Cadence Bank has a way for you to reach out to a loan officer, or you can fill out an information form below.

Be ready with the following information before you reach out:

• Name
• Email
• Phone number
• Loan purpose
• Loan amount
• Purchase price
• Property location 
• Property zip code 
• Degree
• Employment contract
• Proof of medical license

Step 2: Gather necessary documentation 

Every lender, including Cadence, requires its own documentation. Your mortgage loan officer can help you figure out exactly what you need. Some common documents you might need include:

• Purchase agreement
• Employment contract
• Pay stubs
• Recent bank statements
• Tax returns
• Driver’s license or other ID
• Other documents, as requested

Whether you’re a first-time homebuyer or you’re a veteran, having everything together can help a borrower close faster. 

Step 3: If approved, accept the loan 

Once approved by Cadence Bank, decide whether to move forward. Review the documents and terms to determine whether everything matches what you were told when comparing lenders.

Should you apply for a physician mortgage loan with Cadence Bank? 

Run the numbers to see if a doctor mortgage loan from Cadence Bank makes sense for you. With certain degrees and professions, you might have access to special financing options to help you become a homebuyer.  

Before you make your choice, though, compare Cadence Bank to other physician mortgage lenders. Don’t forget to review other traditional mortgage options, as well as other choices like USDA, VA, and FHA loans, that might work better for your situation. 

Fill out the form below for more information about getting a loan from Cadence Bank or other doctor loan programs.