Cadence Bank is a smaller regional bank based out of Atlanta, Georgia with its executive offices in Birmingham, Alabama.
It is the primary subsidiary of Cadence Bancorporation, a bank holding company based out of Huston, Texas. Cadence is a fairly young bank, as it was formed in 2009 by industry veterans. Within its first year, it acquired $1,000,000,000 worth of capital commitments. Since then, it has acquired several banks including Superior Bancorp, Encore Bank, and State Bank.
Cadence Bank has expanded its operations across several states in a short time so that it now spans six states with ninety-nine branches across Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas.
Cadence Bank offers loan options for a wide variety of individuals from many walks of life. Among these options is a borrowing option tailored to the unique financial needs and abilities of early professionals, which resembles a physician mortgage loan.
At Cadence, physicians can receive 100% financing for amounts of up to $1,500,000 if they are just entering the professional world. This is defined as the individual having five or fewer years between their current position and when they either graduated medical school or became licensed.
If a physician has more than five years’ distance between themselves and either graduation or licensure, they can qualify for 95% financing for amounts of up to $1,500,000. However, to qualify, they must be practicing physicians with an established career and be no more than ten years out from their medical school graduations or licensures. No private mortgage insurance is required for either loan.
These loans come in many forms as well, including fixed-rate and adjustable-rate mortgages and 5/1 adjustable-rate mortgages so that professionals have options to hoose from.
Further, the loans are only available to finance primary residences. You cannot use the loan to finance a rental home, investment property, or any abode that you are not personally occupying.
There is a wide range of early professionals who are eligible for this loan, and the list isn’t limited to physicians alone, though they are a priority. Among the extensive list of eligible professionals are included doctors, dentists, attorneys, architects, CPAs, engineers, pharmacists, optometrists, ophlamologists, nurse anethetists, and PHD-level professors who have graduated or become licensed in the past five years.
No private mortgage insurance needed
Young professionals already have many financial demands on their plate when applying for a home loan. The last thing they need is another unnecessary fee added to a debt amount that appears to be ever-growing.
Fortunately, Cadence Bank helps alleviate some of that financial burden by not forcing physicians or other professionals to purchas private mortgage insurance (PMI). PMI can be very costly, and it’s generally used only to protect the lender, not the professional.
Insurance payments made to to PMI are used to ensure that the borrower will not default or miss payments on their home loan. But the fees for PMI can be incredibly high — approximately 20% of the cost of the entire home. That adds hundred of dollars to your monthly loan repayments and can prevent you from being able to pay back those loans and preexisting student debt as quickly as you might have otherwise done.
Options for a wide range of young professionals
Cadence Bank offers a wide range of options for professionals across many fields both in medicine and out of it. Their program allows more young professionals to invest in their future homes than many other physician loans would, because they don’t limit themselves to doctors from a highly specific degree pool.
Solid customer satisfaction ratings
Cadence Bank has high rankings from a number of online customer review sites including WalletHub where it ranks 3.1/5-stars and SmartAsset where it was professionally ranked at 3.9/5-stars. Cadence is recognized for its high-tech identity protection and theft prevention services along with the bank’s stimulation of local enonomies across its service area.
Difficult for older professionals to get loan approval
Cadence bank puts a lot of stock in younger professionals, requiring that no professional they finance or lend to be more than ten years out of school in some cases, but no more than five in others. For professionals later in life who want to establish a home for themselves adn their families, they may find they are not eligible through Cadence if they have too much time between their current age and their dates of either licensure or graduation.
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Jack is the Head of Content & SEO at LeverageRx, a personal finance company exclusively for doctors.