My Perfect Mortgage
Physician’s Loan Understanding Your Financing Options
5 minute read
September 21, 2021

Doctors often have unique and complex financial situations, especially new physicians. These situations can make buying a home with conventional mortgage financing a challenge.

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Medical school can create some high debt levels and a limited amount of cash available for a mortgage down payment. However, experienced physicians loan lenders understand that you’re on a journey to a lucrative and highly compensated career. That’s why we offer a special kind of mortgage loan for medical professionals - a physician mortgage loan.

Here is everything you need to know about getting a physician's mortgage loan.

Do doctors get special mortgages?

Yes, you do! Why you might ask? Because your current financial situation is probably a weird moment in your life. It's a period that is unique to medical professionals. 

As a young doctor, you worked very hard and probably accumulated a lot of debt to finance your specialized education. During this grueling multi-year education and training process, maybe you've started a family.

Lenders understand that now, as you begin practicing medicine, you may have trouble qualifying for a conventional mortgage. The potential for high earnings in the field makes doctors ideal candidates for loans.

My Perfect Mortgage can match you with a lender who specializes in these loans and can help you get a physician loan. 

What is a doctor’s mortgage loan?

A physicians loan, or sometimes called a doctor’s mortgage loan, is a unique mortgage loan program designed exclusively for qualified medical professionals.

These mortgage loans are often for larger homes and home loan balances, offer very low down payments, no private mortgage insurance (PMI), and more flexible debt-to-income ratios. 

This flexible mortgage financing is very appealing to young physicians and doctors - doctors, dentists, veterinarians, and pharmacists (MD, DO, DDS, DMD, DVM, PharmD, OD). 

Should you get a physician’s loan?

If you’re ready to become a homeowner but can’t afford the sizable down payment and still have a significant amount of student loan debt, then this exclusive mortgage loan program was designed to help you. Typically, a physician loan is ideal for new doctors getting ready to start a new position in their medical specialty. 

Who qualifies for these unique physician’s loans?

A physician's loan is an exclusive mortgage program designed for qualified medical professionals. 

Currently, this loan program is available to the following doctors: 

  • Medicine (MD)
  • Osteopathy (DO)
  • Dental Surgery (DDS)
  • Dental Medicine (DMD)
  • Veterinary Medicine (DVM)
  • Pharmacy (PharmD)
  • Osteopathic Medicine (OD)

Like other mortgage loan programs, there are various other qualifying criteria that a specialized loan officer would be happy to walk you through. 

Is a physician’s loan a conventional loan?

No, this is not a conventional mortgage loan. Physician loans are exclusively for qualifying medical professionals. These loans have grown in popularity in recent years, due to doctors being seen as low-risk borrowers and ideal for banks.

Conventional mortgage loan financing often prevents doctors from qualifying because of their unique financial backgrounds. Physician mortgage loans have qualifying criteria that are far more accommodating and adapted to doctors’ financial profiles’ unique characteristics. 

Special accommodations include:

  • Relaxed debt-to-income ratios - Medical school and residency are expensive, probably leaving you with lots of student loans. But, your long-term earning potential could soon make this debt insignificant. A physician loan considers this unique dynamic.
  • No income history - Medical school and residency are also a long process. You’re a little older and more mature than the typical fresh-faced college graduate. You might have started a family or relocated to begin your professional practice. You are also probably holding a signed employment agreement that is substantial. Lenders of physician's loans can work with these situations to help you become a homeowner sooner than later.

Can I buy a home with a low down payment?

Low down payments are one of the appealing features of a physician's loan.

If you’re ready to buy a home but haven’t had the time to save a conventional loan qualifying down payment, then a physician loan might be for you. 

You have enormous earning potential, but you haven’t had time to recuperate your savings and pay off your student loans - a physician mortgage loan can help.

Do doctors pay mortgage insurance?

Another compelling feature of physician loans is that most don’t require private mortgage insurance (PMI). 

When a borrower puts less than 20 percent down on a home purchase, conventional loans require PMI to protect the lender from potential non-payment or default on that mortgage. Because of their unique earning potential, physicians have a low financial risk profile that is considered in qualifying for a physician mortgage loan.

Can I refinance my physician’s loan?

Yes, you can refinance a physician loan.

Refinancing a physician loan can be an important consideration for doctors as they progress in their careers and their savings and net worth rapidly increases. Often conventional mortgages, that are not an option for young doctors without significant savings and high student loan debt can offer a lower interest rate. So, as your career advances and you begin accumulating wealth and retire your student loans, refinancing might be a good option.

Next Steps

My Perfect Mortgage provides you with the tools you need to find the perfect lender for you. 

Get started on the process today, and we’ll help you connect with lenders who can help you get a physician's loan.

Photo by Thirdman from Pexels

Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.