Question 1

What is a physician mortgage loan?

Accepted Answer

A physician mortgage loan is a specialized home loan designed for medical doctors, dentists, and other high-earning healthcare professionals. Key benefits include 0% down payment options, no private mortgage insurance (PMI), relaxed debt-to-income requirements that account for student loan debt, and the ability to close using a signed employment contract before the first paycheck arrives.

Question 2

Who qualifies for a physician mortgage?

Accepted Answer

Physician mortgages are available to MDs, DOs, DMDs, DDSs, and in some programs DVMs, PharmDs, and nurse practitioners. Most lenders require proof of a medical degree and a signed employment contract or proof of current practice. Residents, fellows, and new attendings all typically qualify, making these loans particularly valuable for early-career physicians with high student debt and limited savings.

Question 3

Is a physician mortgage better than a conventional loan?

Accepted Answer

For most early-career physicians, a physician mortgage is the better choice. By avoiding a 5–20% down payment and eliminating PMI — which can cost $750–$1,000 per month for 11 years — physicians keep capital liquid and invested. Over 30 years, the preserved down payment invested at 7% annual returns can grow to $380,000 or more, far outpacing the modest increase in monthly principal and interest payments.

Question 4

Do physician loans have higher interest rates?

Accepted Answer

Physician mortgage interest rates are typically 0.125–0.50% higher than conventional loan rates for borrowers with 20% down. However, this difference is often more than offset by avoiding PMI costs. For a $1 million home, PMI on a conventional 5%-down loan costs approximately $9,024 per year, while the rate premium on a physician loan adds roughly $625–$2,500 per year — resulting in significant net savings on physician loans.

Question 5

What is the maximum loan amount for a physician mortgage?

Accepted Answer

Most physician mortgage programs offer 0% down up to $750,000–$1 million, 5% down up to $1.5 million, and 10% down up to $2–3 million. Specific limits vary by lender. For homes above $1 million, lenders typically require 5–10% down despite physician loan status. Use our calculator to model your specific home price and down payment scenario.

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Should you get aphysician mortgage?

The numbers behindthe physician advantage

Three inputs.Instant clarity.