Physician mortgage loans are designed to give doctors a path to homeownership earlier in their careers. Buying a home is already a major milestone, but for physicians it often comes with extra hurdles. Years of medical school, heavy student loan balances, and delayed entry into a full-time salary make it harder to qualify for traditional mortgages. That’s why physician mortgage loans exist.
If you’re a medical professional weighing your mortgage options, here’s how physician loans work, who qualifies, and how they compare to other mortgage programs.
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What is a physician mortgage loan?
A physician mortgage loan, also referred to as a doctor loan, is a type of mortgage designed exclusively for medical professionals. Unlike conventional mortgages, they remove some of the barriers that make it difficult for doctors to buy homes early in their careers.
The main benefits of physician mortgage loans are that little to no down payment is required, no private mortgage insurance (PMI), high loan limits, and flexible debt-to-income (DTI) ratios. Since most doctors carry large student loan debt but have high future earning potential, lenders are more willing to offer such flexible requirements.
Who qualifies for physician mortgage loans?
The following medical professionals qualify for physician mortgage loans:
- Medical doctors (MDs and DOs)
- Dentists (DDS and DMD)
- Veterinarians (DVMs)
- Some lenders may also accept podiatrists, pharmacists, and optometrists, among other professionals.
Apart from being a medical professional, you also need to meet some lender requirements:
- Good credit score, usually 700 or higher
- A signed employment contract
- Proof of medical education
- Deferred student loans, if any
Residency or fellowship status isn’t necessarily a barrier, since many lenders qualify applicants based on a signed contract instead of current income. That makes these loans especially appealing for young physicians who want to buy a home before completing training.
If you’re unsure of your eligibility, you may want to prequalify for a mortgage to see where you stand before applying.
Physician mortgage loan availability and lender options
Several national banks and regional lenders offer physician mortgage loans. Some well-known banks that provide physician mortgage loans include the following:
Remember that each lender sets its own rules about down payments, loan limits, and eligible professions, so comparing physician mortgage loan offers between lenders is essential. A mortgage broker can help you shop around.
Pros and cons of physician mortgage loans
Physician mortgage loans have pros and cons worth understanding before making any commitments.
Pros
- No PMI: With a conventional mortgage, you’d pay private mortgage insurance if you put down less than 20%. Doctor loans waive it entirely.
- Lower or zero down payment: Instead of needing tens of thousands upfront, you may qualify with as little as 0–5% down.
- Student loan flexibility: Lenders may ignore deferred student loans or use your lower income-driven repayment amount instead of your full balance.
- High borrowing limits: Physician loans often allow mortgages of up to $2 million, recognizing doctors’ future earnings.
Cons
- Slightly higher interest rates: These mortgage programs often carry rates that are a bit higher than conventional loans. While the difference may look small, over time it adds up to a significant amount.
- Limited eligibility: These programs are for specific medical professions like doctors, dentists, veterinarians, and pharmacists. Other healthcare professionals—like nurses or therapists—don’t qualify.
- Not widely available: Not every bank offers physician mortgage loans, and some programs are limited to certain states or regions. This may restrict your choices and make it harder to find the best terms.
- Potential to overspend: Because physician loans allow higher borrowing limits with little or no money down, it’s tempting to buy a bigger, more expensive home than you really need.
- Property restrictions: Most physician loans are for primary residences only. That means you can’t use them to buy vacation homes or investment properties.
How physician mortgage loans compare to other loan options
FHA loans
FHA loans allow down payments as low as 3.5%, but they require ongoing mortgage insurance. For doctors with large loan balances, physician loans are usually better.
VA loans
For veterans and active-duty service members, VA loans are excellent. They require zero down payment and no PMI, similar to physician loans. However, unless you’ve served in the military, VA loans won’t be available to you.
Conventional loans
Conventional mortgages generally require more savings up front. They’re a good option for physicians who’ve been practicing for several years and built up cash reserves but less ideal for residents or fellows.
Adjustable-rate mortgage loans
Some doctors consider adjustable-rate mortgages (ARMs) for their lower initial rates. ARMs like 5/1 loans or 7/1 loans can be cost-effective if you only plan to stay in a home for a few years. The downside is that rates can rise later, increasing your monthly payment.
Bottom line: Compare all loan types before going with a physician mortgage loan
Physician mortgage loans were created for one reason: to make homeownership possible for medical professionals. They remove barriers like PMI, large down payments, and strict student loan calculations. However, they’re not without tradeoffs. Rates may be slightly higher, property restrictions, and only certain medical professions are eligible. Additionally, not every bank offers physician mortgage loans and there is the potential to overestimate your future earnings and end up in a house that’s too expensive.
The best way is to compare physician loans to other mortgage loan options throughout before making your decision. You may also want to think about your career stage, financial goals, and how long you’ll stay in the home. This way, you can choose a mortgage that supports your long-term goals as well as your dream of owning a home.