Mortgages for Doctors: How Physician Loans Help You Buy a Home with Low (or No) Down Payment

If you’re a doctor or dentist who is ready to buy a house, consider physician loans when getting a mortgage. Physician loans, also called doctor loans or doctor mortgage loans, are specialty mortgages with flexible underwriting designed to help doctors purchase homes (even if you have hefty student loan debt). 

Below, we’ll explain how physician loans work, why banks offer them, who is eligible for one, and several of the top lenders to consider on your homebuyer journey.

Table of Contents

1. How do physician loans work?
2. Rates, terms, and more
3. Who qualifies for a physician mortgage?
4. When are they a good idea?
5. Best physician mortgage loans
6. FAQ

How do physician loans work?

Panacea Financial conducted the 2024 Residents & Fellows Survey Report, which showed that over half of doctors in training (54%) had financial stress above an eight on a scale of 1 to 10. Respondents’ average student loan debt was just under $300,000, and 80% of those surveyed had credit card debt. 

These statistics show why newly trained doctors might be hesitant to take on mortgage debt. Only 27% of those surveyed had a mortgage. However, many lenders offer a specialty mortgage type that helps doctors, dentists, and other health professionals purchase homes. Unlike conventional loans, lenders typically exclude student loan debt from DTI calculations for physician loans. Many lenders also offer 0% down doctor loans with no private mortgage insurance (PMI) requirements.

Lenders offer this type of loan to accommodate doctors who have been in school and training for a significant amount of time, which means they have an atypical work history and student loan bills. Many doctors, especially residents and fellows, would not be able to qualify for a conventional mortgage. Physician loans give them an opportunity to become homeowners.

	Physician loan	Conventional loan
DTI	Typically excludes student loan debt from DTI calculations	Uses all your debt payments in a DTI calculation
Employment reqs.	Vary, but doctors can often get a loan with a signed work contract as long as they start work near the closing date	Requires stable work history and proof of income
Eligibility	Must be a doctor, dentist, or other medical professional (e.g., CRNA or pharmacist)*	Open to borrowers who meet age, credit, employment, and other qualifications
Interest rates	Typically higher than conventional loans	Rates vary based on credit score and other factors, incl. down payment
PMI	Borrowers don’t owe PMI, even if they put down less than 20%	Required if borrowers put down less than 20%
Down payment	Can be as low as 0%*	Typically 5% to 20% or more
Loan limit	Varies by lender, but it can be $2 million or more with a larger down payment	Up to $806,500 according to the FHFA, but can be more depending on location.

Physician home loan interest rates, terms, and more

Lenders offer doctors these better terms, such as no down payment and no private mortgage insurance, because they consider doctors responsible borrowers. Dr. James M. Dahle, founder of The White Coat Investor, explains that doctors have very low default rates, so banks are willing to create loans with special underwriting that allows physicians to qualify for mortgages.

Dr. Dahle explains that although doctor mortgages offer several benefits, such as no PMI and low down payments, they are likely to have higher fees and interest rates than conventional loans. So they might not be the best fit for established physicians who can afford to make 20% down payments.

Doctors interested in applying for physician loans should compare at least three lenders. If the lender offers lower interest rates, check whether they charge higher fees. To find the best fit for you, look at each loan offer comprehensively, including customer reviews and whether the lender closes loans on time.

Who qualifies for physician mortgage loans?

Physician mortgages are available to medical professionals such as doctors and dentists, including doctors in training—e.g., residents and fellows. Medical students do not qualify for a physician loan until they’ve been matched into a residency program and have a job contract.

Some lenders offer these loans to a broader range of healthcare professionals, including veterinarians, optometrists, podiatrists, pharmacists, and nurse practitioners. If you’re a medical professional and you’re wondering whether you qualify for one of these loans, contact lenders in your area that offer mortgages for healthcare professionals. (We think the ones listed below are an excellent place to start.)

When are physician loans a good idea?

Doctor loans for houses can be helpful, especially for residents and fellows who might not have the cash on hand for a large down payment. However, applying for one isn’t always the right choice for every circumstance. Here’s when a physician loan makes sense and when it doesn’t.

Scenario	Does a physician loan make sense?
Low savings on hand for a down payment	Yes
High DTI due to student loan debt	Yes
Established physician who wants a loan of up to $2 million	Yes
Matched into a residency and want to move into a home before work starts	Yes
Attending with the income and ability to make a 20% or more down payment	No
Want to buy a second property to rent out as an investor	No
Unsure whether homeownership is a good idea during training	No
Want to avoid paying for private mortgage insurance but don’t have 20% down	Yes
Have excellent credit and want to qualify for a mortgage with the lowest interest rate	No

Ultimately, doctor loans are designed for doctors with low savings and high student loan debt but excellent earning potential. These loans provide a pathway for residents and fellows to become homeowners without worrying about paying for PMI or coming up with a large down payment. 

However, for established physicians with high incomes, excellent credit, and solid savings, getting a conventional mortgage might be a better financial choice in the long term. While conventional loans have stricter requirements for borrowers, traditional mortgages also have lower interest rates than doctor loans.

Even a slight percentage difference in interest rate can equal thousands of dollars of savings over the life of a mortgage loan. So, whether a physician loan is best for you depends on your stage of life, where you are in the training process, and the amount of student loan debt you have.

Where to find the best physician mortgage loans

Here are the top lenders offering physician mortgage loans. 

Lender	Who’s eligible?	Best for
Bank of America	MD, DDS, DMD, OD, DPM, DO	Closing before you start work
Fifth Third Bank	Physician, resident, fellow, or dentist with an employment contract	Minimizing upfront costs
Truist	Residents, interns, and fellows in MD, DO, and DPM programs as well as practicing doctors and dentists (MD, DO, DPM, DDS, DMD)	Recent grads with deferred loans
TD Bank	Residents, fellows, MD, DO, DPM, DDS, DMD, and oral surgeons	Qualifying with employment contract
Huntington Bank	MD, DO, DDS, DMD, and DVMs	Higher DTIs

Here’s more about each of the above physician mortgage programs:

Bank of America

Best for closing before starting work

Fifth Third Bank

Best for minimizing upfront costs

Truist

Best for recent grads with deferred loans

TD Bank

Best for qualifying with employment contract

Huntington Bank

Best for higher DTIs

Takeaways

The majority of these lenders offer physician loans with flexible DTI and employment requirements and no down payments on mortgages up to $1 million. When researching physician mortgages, we chose lenders that were available in many states and had an A– or better S&P Global rating, which confirms financial stability in banking.

This applies to all homebuyers approved for a large loan amount: I recommend that buyers focus on finding a home that meets their essential needs rather than stretching their budget. 

It’s important to remain conservative and realistic, prioritizing necessities and non-negotiables during the house-hunting process. 

Unexpected life events—such as job loss, disability, or other financial setbacks—can affect one’s ability to pay a mortgage. Keeping this in mind can help buyers make a more secure and sustainable home purchase.

You should still take the time to research each lender, ask about fees, and find a mortgage broker willing to answer questions. Buying a house is a massive financial decision, but it’s even more important to take the time to understand the process when you already have substantial student loan debt.

Ultimately, physician mortgages can help doctors qualify for a mortgage and buy their own homes much sooner due to the more flexible requirements.

FAQ

Are physician assistant mortgage loans available?

Yes, some lenders offer mortgage loans tailored to physician assistants (PAs). For example, Flagstar Bank provides specialized PA loans that include low or no down payment, no PMI, and flexible DTI requirements to account for student debt.

Can I get resident physician loans?

Yes, resident physician loans are available through Fifth Third, Truist, and TD Bank. These loans are designed for medical residents and include 100% financing and no PMI.

Can you refinance a mortgage for doctors?

Yes. Many physician loan lenders also offer refinancing options for doctors, often preserving benefits such as no PMI and allowing higher DTI. 

Whether you’re switching from a traditional mortgage to a physician loan (or vice versa) or simply want better terms on your current physician mortgage, the decision to refinance depends on your goals—such as lowering interest rates, changing repayment terms, or tapping into home equity. Compare multiple lenders and weigh the overall costs before proceeding.

How do you apply for a physician loan?

First, find a lender specializing in physician loans and gather your documentation—proof of employment or contract, recent pay stubs, bank statements, and ID. The application process typically accounts for your future earning potential, so once you prequalify and submit your application, you could receive a streamlined approval. Finally, review the loan details—interest rate, fees, and repayment terms—before signing the agreement.