Physician Loan: Home Buying for Doctors

Why a Physician Loan is a Game-Changer

Medical professionals face a unique financial paradox: you have a high earning potential and a stable career path, but you often carry significant student loan debt and have spent years in residency instead of saving for a massive down payment.

Standard conventional loans don't always account for this journey. That’s where the Physician Loan (or "Doctor Loan") comes in. If you are a resident, fellow, or an established MD/DO, here are the four biggest reasons this specialized mortgage exists for you.

1. Zero to Low Down Payment

Most jumbo or conventional loans require 5% to 20% down. For a $800,000 home, that’s a lot of liquidity to tie up. Physician loans often allow for 0% down payments on loan amounts up to $1M or more. This allows you to keep your cash for investments or moving costs while still getting into the home you want.

2. No Private Mortgage Insurance (PMI)

Usually, if you put down less than 20%, lenders charge you PMI—a monthly fee that protects the bank, not you. Physician loans waive this requirement entirely. Even with $0 down, you won't pay a dime in PMI, saving you hundreds of dollars every single month.

3. Favorable Student Loan Treatment

The biggest hurdle for doctors is often the Debt-to-Income (DTI) ratio. Standard lenders see $250k in student loans and get nervous. Physician loan underwriters, however, understand how medical debt works. They often calculate your DTI based on your actual monthly payment (like an IBR plan) or exclude the debt entirely if it’s in deferment or forbearance.

The Bottom Line

Your career path is different from the average professional, so your mortgage should be, too. If you’re ready to stop renting and start building equity, a Physician Loan is the most powerful tool in your belt.

Want to see if you qualify for a Physician Loan? Reach out today for a consultation tailored to your unique financial situation!