Regions Bank Physician Mortgage Review

If you’re a physician looking for a mortgage, it’s smart to consider taking advantage of loan programs designed specifically for medical degree graduates, like the doctor loan program from Regions Bank.

This program is designed to make purchasing a home easier for physicians (including residents). What are the advantages and drawbacks of the Regions Bank physician mortgage? Let’s take a look.

Regions Bank physician mortgage details

Not all loans are created equal. Here are the important details about the mortgage offer to physicians by Regions Bank.

Pros

Thinking of getting a physician mortgage from Regions Bank? Here are the advantages.

Favorable debt-to-income treatment

Mortgage lenders will look at your debt-to-income ratio to determine if you can keep up with your monthly mortgage payments. Student loan payments can quickly make this ratio look lopsided, especially early in your career when you’re earning less.

By disregarding some deferred student loan payments in this calculation, you might be able to get a mortgage in the early years of your career — especially during a residency or fellowship.

Minimum down payment

If you haven’t had time to save for a down payment, no problem. Regions Bank has options for no down payment. Typically, with a low or no down payment, you’ll need to pay private mortgage insurance, increasing the cost of your monthly payments. But with Regions Bank's Medical Professional Loan program, the private mortgage insurance is waived. In addition, there is no loan amount limit for what you decide to apply for.

Obtain your mortgage before you start work

You don’t need to wait for a history of paychecks or hold your position for a certain amount of time before you obtain your mortgage. This can be beneficial if you’re starting a residency or fellowship and want to own your first home in advance. Other lenders could require a stronger work history before approval. Regions Bank allows you to close up to 90 days prior to your start date listed on your employment contract/offer letter or date of transferred employment.

Cons

We’ve told you what’s great about Regions Bank, but there are some notable disadvantages to their physician mortgage product, too.

• Not available in all states: Regions Bank only operates in the following states: AL, AR, FL, GA, IL, IA, KY, LA, MS, MO, NC, SC, TN, TX. If you want to buy a house outside of these areas, Regions Bank is definitely not the lender for you.
• Large monthly payments: Obtaining a large mortgage with a low down payment might seem great at first, but remember that the larger your mortgage amount the more you’ll have to pay each month. If you lose your job or have difficulty finding a position after your fellowship, this could put you on precarious financial footing. Always get the smallest mortgage to suit your needs.
• Not open to all medical professionals: Some high-ranking medical degrees, such as a Doctor of Nursing, aren’t included in the list of eligible professions.
• Not available to all visa holders: Permanent residents are able to apply; however, non-permanent visa holders are ineligible at this time.

How to apply

If you want to move forward with an application for a Regions Bank mortgage, here’s how to get started.

Step 1: Make an online or in-person appointment

Contact Regions Bank, in order to get connected with someone at Regions and find out more.

Another option is to set up a meeting with a bank representative online on their website. Using the online scheduling tool, select “personal banking,” then “life events,” and enter your location.

You’ll be prompted to select a Regions Bank branch near you. Afterward, you can schedule a 45-min online appointment with a local banker.

Step 2: Gather your information

To apply, you’ll need information to provide to your mortgage officer. Here’s what you should have ready:

• Employment information such as an offer letter for your residency or fellowship, or pay stubs. If you’re already earning a salary, provide W-2 forms from the last two years and your two most recent pay stubs. Self-employed physicians need tax returns from the last two years.
• Proof of your education and information for all of your outstanding debt.
• Your Social Security number so Regions Bank can run a credit check. This credit check might temporarily impact your credit score.
• Two-year residence history, including names, addresses and telephone numbers of landlords for the past two years.
• Your two most recent bank statements.

You can apply for a physician mortgage before you’ve found a property you want to purchase. Since the application process could be lengthy, applying in advance might help you remain competitive in a tight housing market.

Should you apply for a mortgage with Regions Bank?

Regions Bank has a lot to offer physicians looking for a mortgage. It’s always best to compare rates between various lenders to make sure you’re getting the best deal. Before you commit to Regions Bank, be sure to review other physician mortgages, weighing the pros and cons of each option.