Doctor & Physician Mortgage Loans
No PMI, low down payment options, and student-debt-friendly qualification designed specifically for medical professionals.
Quick Answer
Physician mortgage loans let doctors, dentists, and medical professionals buy a home with as little as 0-5% down and no private mortgage insurance (PMI). These loans exclude student debt from DTI calculations and accept employment contracts as income verification for residents.
What Makes Physician Loans Different?
Physician mortgage loans are specialty products designed to address the unique financial profile of medical professionals. Most doctors graduate with significant student loan debt, have limited savings early in their careers, but earn high incomes with strong job stability. Traditional mortgage underwriting penalizes these borrowers for their debt load and lack of down payment savings.
Physician loan programs recognize that medical professionals represent exceptionally low default risk despite their debt-to-income ratios on paper. These programs offer relaxed qualification criteria that account for the trajectory of a medical career rather than just a snapshot of current finances.
Physician Loan Benefits
No Private Mortgage Insurance
Unlike conventional loans that require PMI with less than 20% down, physician loans waive this requirement entirely. This can save $200-$600+ per month depending on the loan amount.
Low to Zero Down Payment
Many physician loan programs offer 0% down on loans up to $750,000 and 5% down on loans up to $1 million or more. No PMI applies regardless of down payment amount.
Student Loan Flexibility
Student loans in deferment or on income-driven repayment plans can be excluded or calculated favorably for DTI purposes. Some programs use the IBR payment amount rather than 1% of the balance.
Employment Contracts Accepted
Residents and fellows can qualify using a signed employment contract up to 90 days before the start date. No need to wait until you have pay stubs or a two-year employment history.
Higher Loan Limits
Physician loans are available in amounts well above conforming loan limits without the stricter requirements of traditional jumbo loans. Many programs extend to $2 million or more.
Closing Cost Flexibility
Seller concessions, lender credits, and gift funds can be combined to cover closing costs. Some programs also allow funds from signing bonuses or relocation packages.
Eligible Medical Professionals
Physician mortgage programs are available to a broad range of medical and dental professionals. Eligibility is typically based on holding one of the following degrees and being either currently practicing, in residency, or within 10 years of completing training.
MD & DO
Medical doctors and doctors of osteopathic medicine, including residents, fellows, and attending physicians in all specialties.
DDS & DMD
Dentists, oral surgeons, orthodontists, and other dental specialists with a Doctor of Dental Surgery or Doctor of Dental Medicine degree.
OD & DPM
Optometrists (Doctor of Optometry) and podiatrists (Doctor of Podiatric Medicine) qualify under most physician loan programs.
PharmD & DVM
Pharmacists (Doctor of Pharmacy) and veterinarians (Doctor of Veterinary Medicine) are eligible with select lenders.
Other Advanced Degrees
Some programs extend eligibility to nurse practitioners (NP), certified registered nurse anesthetists (CRNA), physician assistants (PA), and other advanced practice providers.
Physician Loan vs. Conventional vs. FHA
See how physician mortgage loans compare to other common mortgage options.
| Feature | Physician Loan | Conventional | FHA |
|---|---|---|---|
| Minimum Down Payment | 0-5% | 3-5% | 3.5% |
| PMI Required | No | Yes (under 20% down) | Yes (MIP for life of loan) |
| Student Loan Treatment | Excluded or favorable calc | 1% of balance or actual payment | 1% of balance or actual payment |
| Employment Contracts | Accepted | Not typically accepted | Not typically accepted |
| Max Loan Amount | $2M+ | $766,550 (conforming) | $498,257-$1,149,825 |
| Credit Score Minimum | 700 (typical) | 620 | 580 |
Frequently Asked Questions
Can residents and fellows qualify for a physician mortgage?
Yes. Most physician loan programs allow residents and fellows to qualify using a signed employment contract. The contract typically needs to show a start date within 60-90 days of closing. Some programs also accept residency match letters as preliminary documentation.
How are student loans handled for physician mortgages?
Student loans in deferment or on income-driven repayment plans are treated more favorably than with conventional loans. Many physician loan programs use the actual IBR payment (even if it is $0 during residency) rather than calculating 1% of the total balance. Some programs exclude deferred student loans from DTI entirely.
Is there a maximum loan amount for physician mortgages?
Maximum loan amounts vary by lender but commonly range from $1 million to $2 million or more. The 0% down payment option is typically available up to $750,000, with 5-10% down required for higher loan amounts. Joshua can help identify the program that best fits your purchase price.
Do physician loans have higher interest rates?
Physician loan rates are generally competitive with conventional mortgage rates and are sometimes even lower for the same loan-to-value ratio, given that they waive PMI. Rate differences depend on the lender, loan amount, down payment, and credit score.
How long after medical school am I eligible?
Most programs require that you are within 10 years of completing your residency or fellowship. Some lenders extend eligibility to any practicing physician regardless of when they completed training. The key requirement is holding an eligible medical degree and being currently employed or under contract.
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