Physician Home Loans
DoctorLoans.com is a no cost service designed to help established physicians, medical students, residents find specialized physician home loans in your local area.
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Doctor Loans FAQ

Frequently asked questions about Doctor Loans

Physician Loan Basics

A Physician Loan is a specialized mortgage program designed specifically for medical professionals. These programs are available to:

  • Medical Doctors (MD)
  • Doctors of Osteopathy (DO)
  • Dentists (DDS/DMD)
  • Residents and Fellows
  • Recently matched medical students

The program offers unique benefits including little to no down payment options (depending on loan amount) and no Private Mortgage Insurance (PMI). This translates to lower monthly payments and access to financing options not available to the general public.

Physician loans differ from conventional mortgages in several important ways:

  • No PMI requirement, even with a down payment under 20%
  • More flexible debt-to-income ratios that account for future earning potential
  • Deferred student loans may not count against your debt-to-income calculations
  • Ability to close before starting a new position with just an employment contract
  • More flexible credit requirements in some cases
  • Higher loan limits compared to many conventional programs

Numerous options are available, similar to conventional loans:

  • 30, 20, and 15-year fixed-rate mortgages for long-term stability
  • Adjustable-rate mortgages (ARMs) with 3, 5, 7, or 10-year initial fixed periods

Your Physician Loan Expert will help you find the best choice in line withyour short and long-term financial and investment objectives.

Private Mortgage Insurance is an insurance policy paid by a borrower to protect the lender when a mortgage exceeds 80% of the home’s value. Physician loans eliminate the need for PMI, even with little to no down payment, resulting in substantial monthly savings compared to conventional loans with less than 20% down.

Qualification and Eligibility

Qualification depends on individual circumstances. A general guideline:

  1. Take your gross monthly income and multiply it by 43-45%.
  2. Subtract your minimum monthly debt payments on existing debt (car loans, credit cards, etc.)
  3. The remaining amount represents your maximum monthly housing
    payment, which includes principal, interest, property taxes,
    homeowners insurance, and HOA dues (if applicable).
It depends. For most incoming residents, student loans are deferred for a period of time after the completion of medical school. In most of those situations, student loans would affect your ability to qualify. For those already on a payment plan through your provider, we can often take those payments (not a percentage of your balance) to help you qualify.

This is a significant advantage of Physician Loans over conventional mortgages, which usually include an estimated student loan payment regardless of deferment status.
Yes! With a signed employment contract and all credentialing completed (outside of a health screening), our lenders will allow you to close on your home up to 90 days before your first date of employment. In most cases, you’ll need to show sufficient funds to cover mortgage payments and/or minimum payments on existing debt until 1 month after your start date. Some lenders may have additional requirements or timing restrictions.
Minimum score requirements vary by lender. Most lenders offering 100% financing require at least a 720 credit score, but some will consider scores as low as 680 without down payment. Even with a lower score, most physician loans offer more flexible credit terms than conventional mortgages

Application Process

Common documentation requirements include:

  • Government-issued ID
  • Employment contract or proof of current employment
  • Recent pay stubs (if currently employed)
  • W-2 forms from the past two years (if applicable)
  • Federal tax returns from the past two years (if self-employed)
  • Bank statements showing sufficient funds for closing
  • Medical license or medical school diploma
  • Proof of residency/fellowship acceptance (if applicable)

While timelines vary by lender and individual circumstances, you can generally expect:

  • Pre-approval: 1-3 business days
  • Full approval: 2-3 weeks
  • Closing: 21-30 calendar days from application

Absolutely! Getting pre-approved before house hunting is highly recommended. Pre-approval:

  • Confirms how much you can borrow
  • Strengthens your offer when you find the right home
  • Identifies potential issues early in the process
  • Gives you a competitive edge in tight housing markets

Our service can connect you with a mortgage professional for pre-approval in as little as 24 business hours, although many will reach out much sooner.

Property Considerations

Most physician loans are designed for primary residences, including:

  • Single-family homes
  • Condominiums
  • Townhouses

Investment properties and vacation homes typically don’t qualify for physician loan programs, though some lenders may offer specialized products for these purposes.

Yes, but they don’t usually follow the conforming/jumbo limits used with traditional financing. While maximum loan amounts can vary by lender, most can lend up $2 million.
All of our lenders offer physician loan programs for newly constructed homes. However, it is rare to find lenders that offer physician loan programs for financing the construction of a home or for renovations. If you’re interested in purchasing a home that requires significant renovations, either a more traditional construction/permanent loan program or an unsecured mortgage product may be a viable alternative in these situations. Consult with a mortgage professional to explore all available options for your specific circumstances.
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