New Attending Physician Home Loans
Preparing for Home Ownership as a New Attending
As a new attending physician, you are well-positioned to qualify for physician loan programs, but understanding your income structure is key. Salaried W-2 employees typically qualify easily, while those with commission-based or self-employment income may face stricter requirements. Maintaining strong credit by avoiding new debt and keeping utilization low enhances mortgage eligibility. While no-down-payment loans are available, budgeting for closing costs, moving expenses, and reserves is essential. Balancing homeownership with student loans, financial planning, and other priorities requires careful consideration, especially in high-cost areas where additional resources may be needed.
Transitioning to Homeownership as a New Attending
As a new attending physician, you’re in an excellent position to qualify for physician loan programs. With established credit and improved income, most lenders view you as an attractive borrower. However, understanding the nuances of your specific employment structure and compensation model is critical for a smooth home buying experience.
Understanding How Your Income Structure Affects Qualification
Your income structure significantly impacts how lenders evaluate your application:
Salaried W-2 Employees
If you’re a salaried employee with straightforward W-2 income, qualification is typically smooth. Most physician loan programs can use your employment contract and allow you to close as early as 90 days prior to your start date. This is one of the primary advantages of physician loans over conventional mortgages.
Commission or Production-Based Compensation
If your compensation includes significant production bonuses, profit-sharing, or shifts to a heavily commission-based structure after a short, initial salary period, qualification becomes more complex. Many lenders require at least 12-24 months of history with this type of variable income before they’ll fully count it toward qualification. Some physician-focused lenders may use guaranteed minimums or baseline salary components, but may discount or exclude projected production bonuses until you establish a track record.
Independent Contractors or Self-Employed Physicians
If you’re joining a practice as a 1099 independent contractor or starting your own practice, most lenders will require at least 1-2 years of self-employment history. However, some may be able to use their income right away if the income on the contract states it is guaranteed from Day 1 each month. There are exceptions for physicians transitioning directly from salary to commission with the same employer, but each situation is case by case.
Leveraging Your Established Credit
As a new attending, you likely have established credit history, which is a significant advantage. Focus on maintaining your credit profile by:
- Avoiding new major debt in the months before applying for a mortgage
- Keeping credit card utilization below 30% of available limits
- Ensuring all payments remain on time, especially as you transition between locations.
Managing Limited Savings Effectively
While your improved income means you can likely qualify for no-down-payment physician loans, you’ll still need funds for:
- Closing costs (2.5%-5% of purchase price)
- Moving expenses (if not paid by your new employer)
- Cash reserves (typically 2-4 months of mortgage payments and existing recurring expenses)
Balancing Home Purchase With Other Financial Priorities
As a new attending, you’re likely facing multiple financial priorities simultaneously:
- Student loan management strategies
- Financial Planning
- Emergency fund establishment
- Life and disability insurance
- Potential practice buy-in preparation
A mortgage professional experienced with physicians can help you balance these competing priorities, determining how much home you can comfortably afford while making progress on other financial goals.
High-Cost Area Considerations
While your increased income as an attending makes qualification easier in most locations, high-cost housing markets can still present challenges. In metropolitan areas with median home prices well above national averages, even attending physician salaries may be stretched thin without:
- Some down payment funds
- Family assistance
- Temporary compromise on home size or location
- Jumbo physician loan programs with specialized qualification criteria
How We Can Help You Navigate Attending Homeownership
Our service connects you with mortgage professionals who specialize in physician loans for new attendings. We can help you navigate the complexities of your compensation structure, develop strategies for optimizing your application timing, and identify the loan programs best suited to your specific situation and location. Many new attendings find that working with a specialist who understands physician career trajectories and compensation models results in significantly better loan terms and a smoother process than working with general mortgage lenders.