Physician Mortgage Loan Review: Happy Mortgage by Centennial Bank

Becoming a homeowner as a doctor or dentist can feel like a daunting task. After all, getting an advanced degree in a healthcare field can result in high student loan debt. With the monthly payments for student loans and other costs, you might feel as though conventional mortgage products won’t work for you.

Centennial Bank offers its Happy Mortgage program aimed at doctors and dentists, as well as programs for attorneys and CPAs. Although it can be hard to meet various requirements for conventional loans, underwriting criteria are often different for physician loans.

Minimum down payment	Zero down for financing a primary residence
Residents allowed	Not disclosed
Maximum loan amount	Not disclosed
Degrees that qualify	MD, DO, OD, DPM, DDS, DMD
Eligible states	AL, AR, FL, TX

Centennial Bank physician mortgage loan details 

The Happy Mortgage division of Centennial Bank is designed to provide various loan types, including doctor loans. It’s a member FDIC and an equal housing lender.

Centennial Bank offers physician mortgage loans to doctors and dentists, as well as to podiatrists. Certain attorneys and CPAs can also access special underwriting through professional mortgage loans.

Centennial Bank physician mortgage loan: Pros and cons 

When comparing mortgage lenders, including looking at programs aimed at healthcare professionals, pay attention to closing costs, disclosures and other terms.

Here are some of the advantages and disadvantages of the Happy Mortgage program through Centennial Bank. 

Centennial Bank physician mortgage loan pros

With Centennial Bank, you can access physician loans and other products with relaxed underwriting standards and other features like low interest rates. 

Up to 100% financing

Not every physician loan program allows 0% down, although many do. As long as you get a primary residence, you can potentially get a loan without the need for a down payment. This can be an advantage if you haven’t saved up enough for a large payment on a home.

Different types of loans

Centennial Bank offers different loan options, including fixed-rate and adjustable-rate mortgages. The Happy Mortgage program also includes the ability to refinance, as well as access construction or renovation loans

Use a physician mortgage loan calculator to run the numbers to see what makes sense in your situation. As a healthcare or other professional, you might have access to a jumbo loan and additional products without some of the stricter underwriting and eligibility requirements that come with conventional loans.

No PMI

One feature of many doctor loan programs is the fact that they often don’t come with private mortgage insurance (PMI). Centennial Bank’s Happy Mortgage is one such when used by doctors and dentists.

Centennial Bank physician mortgage loan cons

When looking into a mortgage loan originator, you also need to check the disadvantages. Centennial Bank does come with some drawbacks to consider before you move forward. 

Small down payments can lead to higher monthly payments

These types of loan programs can make it easier to get a bigger mortgage. While you might qualify for a larger home with this program, it can also lead to feelings of being house poor. The combination of low (or no) down payment plus higher monthly payments can lead to issues later.

Not a lot of transparency around its doctor loan program 

A lot of the information about the Centennial Bank loan program and underwriting process isn’t readily available online. If you want to learn more about your options, you need to contact a loan officer who can help you understand what’s available.

Limited availability 

Centennial Bank’s Happy Mortgage isn’t widely available — applicants in Alabama, Arkansas, Florida and Texas may qualify. Other lenders might offer access to doctor loans, as well as other products like FHA loans and VA loans, to people in a variety of states.

How to apply for a Centennial Bank physician mortgage loan 

As you decide on a lender, make sure to compare three to five lenders, looking at various requirements and offerings. You want to see if you qualify and whether it makes sense for you to get a doctor mortgage loan or if you should use a conventional mortgage or look at another program.

Don’t forget to consider whether the lender charges private mortgage insurance and whether they waive student loan payments when considering debt-to-income ratio. Verify the down payment and the financing requirements for loans other than for a primary residence. 

If you decide that Centennial Bank’s Happy Mortgage program works for you, follow these steps:

Step 1: Contact Centennial Bank

Begin by having your real estate agent reach out to a bank representative. You can also request information through the Centennial Bank website or fill out the form below.

Having the following information ready before contacting the bank can help speed the process along:

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

Step 2: Gather necessary documentation 

Every lender has a list of documentation required to get a home loan. Your mortgage loan officer will let you know the specifics. Some common documentation includes:

• 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 veteran in the process or a first-time homebuyer, gathering your documents and other information ahead of time can make everything go more smoothly. 

Step 3: If approved, accept the loan 

If Centennial Bank approves you, review the terms and decide whether you want to accept the loan. Confirm that the disclosures and other closing terms match what you were told during the process.

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

If the numbers work for you, the doctor and professional mortgage loan programs at Centennial Bank might work for you. Check to see if what’s being offered is truly what works for your situation.  

Additionally, check your finances to see if you’re ready to buy a home. Compare Centennial Bank to other physician mortgage lenders. Also, check to see if other programs, like FHA or VA programs, might better suit your needs. 

Only choose Centennial Bank’s Happy Mortgage program if it’s the best choice for you. You can also fill out the form below for more information.