Physician Loans: Buying Before Your First Paycheck
A signed contract, no down payment, no mortgage insurance, and student loans set aside. Here is how physician lending actually works.
Physician loan programs exist because the standard mortgage playbook describes a new doctor terribly. Enormous student debt, almost no savings, and an income that is about to increase fivefold. Underwritten conventionally, that borrower fails. Underwritten correctly, they are among the safest loans a bank can make.
The four benefits
Low or no down payment, often to 100% of the purchase price. No mortgage insurance regardless of loan-to-value. Student loan debt excluded or counted at the income-based repayment figure. And income accepted from a signed employment contract with a start date up to ninety days out.
Any one of those is helpful. Together they turn an impossible file into a routine one.
Who qualifies
MD, DO, DDS, DMD, DVM, and OD designations are nearly universal. Many lenders add pharmacists, physician assistants, and nurse practitioners. A growing number extend professional versions to attorneys, CPAs, and engineers, usually with a small down payment requirement.
The trade-offs
Rates can run slightly above a comparable conventional loan, loan limits vary by lender, and some programs restrict occupancy to a primary residence. With no equity at closing, you are also exposed if you need to sell within two years, so buy for the length of the contract, not the length of the tour.
Timing your purchase
Start the conversation as soon as the contract is signed. Underwriting can be substantially complete before you relocate, which matters when residency ends and a start date arrives quickly. Bring the contract, your license or match letter, and a current student loan statement showing status and payment.
Does this apply to your situation?
Twelve questions, no credit check, and no email required. See which programs are commonly used for situations like yours.
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