Physician and dentist loans
Built for doctors early in their careers: low or no down payment, no mortgage insurance, student debt treated realistically, and the ability to close on a signed contract before your first paycheck.
Who it's for
Physicians and dentists (MD, DO, DDS, DMD), and on some programs podiatrists, optometrists, veterinarians, pharmacists and nurse practitioners. Residents and fellows, new attendings relocating for a first position, and established doctors buying in the jumbo range who'd rather keep cash invested than put 20% down.
If you're in medicine and you've assumed homeownership has to wait until the student debt is under control, this is the page to read.
How it works
A physician loan is a portfolio-style program that underwrites a doctor's actual situation instead of forcing it through conventional guidelines. Three things are different.
Student debt is counted realistically. On a conventional loan, a six-figure student balance gets assigned a payment that can sink your debt-to-income ratio before you start. Physician programs reduce or exclude deferred and income-driven payments, because a resident's $200 IDR payment isn't the same risk as a $2,500 fully-amortizing one.
Low down payment with no mortgage insurance. Tiers vary by program, but the general shape is 0% down up to a certain loan amount, 5% up to a higher one, and 10% above that, reaching well into jumbo territory. None of the tiers carry monthly mortgage insurance.
You can qualify on a contract. A signed employment contract or offer letter can serve as income verification, typically as long as you start within 60 to 90 days of closing. Relocating for residency or a new attending position, you can move straight into your own home.
What to know
It's not automatically the right loan. If you have 20% saved and strong credit, a conventional loan may price better. If you've served, a VA loan may beat everything. And sometimes the right answer is to rent for a year. We compare all of them; I'll show you the numbers side by side.
Rates are competitive but structured differently. Physician loans are often adjustable-rate or slightly above conventional fixed pricing. The trade is lower cash to close and no PMI. Whether that trade wins depends on how long you'll be in the house.
Reserves still matter. No down payment doesn't mean no cash. Programs want to see some months of payments in the bank after closing; retirement accounts usually count.
Compare programs, not just one. I have access to more than one physician program, and they differ on eligible designations, down payment tiers, loan limits and how they treat student debt. Matching you to the right one is most of the work.
Working with your financial advisor
Physicians are one of the groups I work with most closely alongside financial advisors. The mortgage decision touches the student loan strategy, the retirement savings rate and the timing of a first home, and it's better made with everyone in the room. If you have an advisor, I'll keep them in the loop; if you don't, I know several who focus on medical professionals.
I wrote a longer piece on the three myths that keep doctors renting.
Want to talk it through?
Thirty minutes on video. No application, no obligation, and no cost, now or later.