Why Residency Coordinators Keep Mentioning Physician Loans

And What They’re Not Telling You

Updated: December 2025 • 4 Minute Read

TLDR: High-Yield Summary
  • Residency coordinators are often the first to introduce incoming residents to physician mortgage loans — but they aren’t trained in the financial specifics.
  • Physician mortgage programs vary widely between lenders — down payment, loan limits, and student loan treatment can all differ significantly.
  • Most residents can qualify before starting residency using only their signed offer letter.
  • Starting early helps you secure better housing options and avoid peak-season stress during the Match-to-July transition.

1. Physician mortgage programs are NOT all the same

Most residents hear the short, oversimplified version: “There are special loan programs for doctors.” But here’s what typically goes unsaid:

  • Every lender has different eligibility rules
  • 0% down options are available — but not universal
  • Some programs cover fellows — others don’t
  • Some loans require PMI (eg. FHA), and are often disguised as physician loans
  • Student loan qualifying payment rules differ lender-to-lender

Why it matters:
The loan you pick influences what you can buy, where you can live, and how much you spend each month.

Common misconceptions

  • “All physician mortgages work the same way.”
  • “My student loans will disqualify me.”
  • “I have to wait until I’m getting paid to get pre-approved.”

Reality
Choosing the wrong program can cost thousands — especially during residency years when every dollar matters.

2. Coordinators rarely highlight the biggest benefit: early approval with an offer letter

One of the strongest physician-loan advantages: You can often qualify — and close — using only your signed residency offer letter, months before your first paycheck.

This creates huge advantages:

  • Start home shopping immediately after Match Day
  • Avoid the stressful late-June housing crunch
  • Expand neighborhood options in competitive markets
  • Move with confidence — not chaos
  • Focus on onboarding, not lease drama

This feature exists specifically to help residents — yet most trainees only learn about it when time is already tight.

Curious if your offer letter qualifies? Steth can help you confirm the basics — and then connect you with a physician-loan specialist for next steps.

3. Student loans don’t disqualify you — but the right lender matters

Many residents assume: “With my debt, there’s no chance I can buy a home.”

Physician mortgage programs are built for medical training — and often:

  • Use IBR / IDR / PAYE / REPAYE payments (see www.studentaid.gov for details on each)
  • Loans currently in deferment may help you qualify with no monthly payment
  • Disregard the total amount of student loan debt acquired.

What varies significantly:

  • How lenders calculate loan payments for approval

One single rule difference can determine whether you:

  • Qualify — or don’t
  • Live close to the hospital — or far away
  • Can afford a 1-bedroom — or need to downsize

That nuance is exactly where a mortgage specialist protects your buying power.

4. Timing drives your stress level — and your housing options

Understanding the residency housing timeline is powerful:

  • Nov–Dec: Interviews and early planning
  • January: Narrowing to 3–4 cities; Connect to a Physician Loan Specialist
  • Feb–early March: Financial prep + document gathering
  • Mid-March: Match Day → Start home search
  • March–April: Pre-approval, touring homes, making offers
  • April–May: Under contract + underwriting
  • June: Moving and beginning residency

Waiting until June typically means:

  • Less inventory
  • More compromises
  • Shorter decision windows
  • Competing with dozens of other residents

Buy early = choose the best homes
Buy late = take what’s left

We’ll break this down further in: Match Day Home Buying Checklist (coming soon)

5. Renting feels simpler — but not always ideal

Renting can be a smart choice if you:

  • Expect frequent relocation
  • Want maximum flexibility
  • Prefer fewer responsibilities during training

But over 3–7 years, renting often means:

  • No equity built
  • Annual rent increases
  • More moves during an already demanding period
  • Longer commutes in many residency cities
  • Less control over your environment

Owning can offer:

  • A stable home base
  • Quiet space for sleep and study
  • Predictable housing expenses
  • A stronger sense of belonging in your new city

Your housing should support your well-being — not drain it.

Internal Article References (Upcoming Posts)

  • How Your Offer Letter Can Help You Qualify for a Physician Loan Before You Start Residency
  • Why Your $300K in Student Loans Won’t Kill Your Mortgage Dreams
  • Match Day Home Buying Checklist
  • Start the Mortgage Process Before Match Day (Yes, You Can)

3 Simple Options
to Get Started

Scroll to Top