Arkansas is nicknamed “The Natural State” for good reason. It has an incredibly diverse geographic landscape, which includes the highland regions of the Ozarks and Ouachitas, densely forested land known as the Arkansas Timberlands, and lowlands in the east along the Mississippi River.  

You don’t have to be a dedicated nature lover to want to purchase a home in Arkansas, however. The state has one of the most affordable home price averages compared to state averages across the U.S. Last year, a whopping 36.5% of Arkansas home sales were under $235,000, making it an appealing and affordable market for many looking to buy. 

Doctors and dentists looking to purchase a home in Arkansas can not only enjoy the lower home prices but also take advantage of the state’s physician mortgage loan programs. These programs allow qualified applicants, such as the nearly 6,500 doctors in Arkansas, to buy a home with minimal or no down payment cost. 

Advantages and disadvantages of Arkansas physician mortgage loans

Arkansa physician mortgage loans are great options for many professionals, but it’s always best to consider all the upsides and downsides of a loan before committing. Here are some of the pros and cons you will want to keep in mind when looking at doctor mortgages in Arkansas. 

Pros:

• No or little money down, or up to 100% financing
• Higher limits that can allow you to buy a bigger home than you might expect
• No required Private Mortgage Insurance (PMI) payments
• Special consideration for student debt, a pain point for many highly-educated healthcare professionals

What are some of the cons? Consider the following:

• Higher limits can cause you to buy a bigger/more expensive home than you need or can afford
• Rates can be higher with doctor mortgages for borrowers
• The lender may require that you open an account with them (e.g. savings account)

Physician mortgages in Arkansas have a lot of appeal, especially considering that they can often come with 100% financing on a home. Just make sure to keep the cons in mind when weighing things in the balance. Bear in mind that loan repayment will kick in at some point in the future and that the incentives of the physician home loan should always be balanced with the possible downsides. If you have already found a perfect home to live on the NMLS but want to look for options with limited or no down payment, consider some of the home loan lenders for physicians in Arkansas.

Should you consider an Arkansas physician mortgage?

Ask yourself: Is an Arkansas physician mortgage loan the right fit for you? It very well could be. The answer to that question involves where you are in your life and career and where you see yourself going moving forward. 

Have you planted your roots in Arkansas? Is your job with a government agency or major area hospital and you’re doing something you will want to do for a long time? If you have been in a position for more than a year or two, enjoy the community and lifestyle in your region, and see yourself staying in Arkansas, a doctor mortgage could be a perfect fit. 

Are you comfortable with a potentially higher rate on your mortgage? That higher rate comes with a good deal of benefits, including little to no money down, and may be worth it. If you prefer to find a lower rate, you may want to save toward a down payment on a conventional mortgage. 

Keep in mind that your Arkansas lender offering a physician mortgage is looking for a long-term relationship with you. They covet high-income professionals, and this is something that could benefit you. If you don’t want to commit beyond your mortgage to a lender, however, waiting for a conventional mortgage may be the better fit. 

Interest rates for lenders can vary, but you might also factor in the ability to refinance your loan in the future as you’re weighing whether or not to take out a physician home loan. Keep in touch with your recruiters to gather all the documents like your job contract, as this will be needed in the home loan application process.

The type of doctors who take out physician loans in Arkansas

The following are some classic examples of doctors and professionals in Arkansas who have decided to go with a physician mortgage. Reading through these examples can help clarify whether or not a doctor mortgage is right for you. From primary care to internal medicine and behavioral health, the payment options for buying a home loan through a physician loan is valuable for medical providers who have limited resources for a current down payment.

Doctor with little or no down payment

Laura married her husband early on in medical school and had a child soon after. They both knew they were moving in the same direction, and starting a family felt right. Now at the start of their residencies at Mercy Hospital Northwest, the couple is looking around for mortgage options. 

Raising a child while in medical school didn’t do their savings any favors, so they will only qualify for a mortgage that requires little to no money down. Thankfully, the fact that they have their residencies lined up puts them in good stead with a local lender who specializes in physician mortgage loans. The lender will also give special consideration to their student loans, which are still sizable. A physician loan is the best option for this growing family. 

Doctor who prefer investing in stocks

Tom has an established plastics practice in Little Rock with a great clientele and great income. He has been able to make some impressive investments, too, in a stock portfolio. While the time is right to move his family into a larger home, he doesn’t want to sell his portfolio to have the cash available for a down payment. Instead, he’s decided to turn to a physician mortgage loan to finance his house. His income qualifies him for 100% financing, allowing him to maximize his leverage and keep his investments intact. 

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