Free Guide · Updated 2026

The physician loan guide: how doctors buy with little down

A physician loan is built for doctors, not adapted from a standard loan. That means little to no money down, no monthly PMI, and student loans that don't sink your qualifying ratio.

By Mike Certo, NMLS #260555 · Cornerstone First Mortgage · Updated August 2026

What is a physician loan?

A physician loan is a mortgage designed around a doctor's real financial picture: a lot of student debt, a brand-new job that may not have started, and little time to save a large down payment. Instead of forcing your file into a standard box, it flexes on the pieces that usually trip doctors up. That's why so many physicians qualify for more than they expected.

Lenders offer these programs because doctors are a strong long-term bet. Income climbs sharply after training, default rates stay low, and the relationship tends to last. So the loan trades a little short-term risk for a client who's likely to buy, refinance, and refer for years. You get the benefit of that math in the form of low down payments and no PMI.

Who qualifies for a physician loan?

Physician loans are built for credentialed medical professionals, most commonly MD, DO, DDS, and DMD, and often DVM, CRNA, PharmD, and DPM. Residents, fellows, and new attendings all qualify, not only established doctors. Eligible credentials and career stages vary by lender and program, and your credit, the property, and reserves still apply.

If you're partway through training, this matters more than you'd think. A resident carrying six figures in student loans and no big savings cushion is exactly who these programs were written for. The Consumer Financial Protection Bureau lays out how loan options differ, and physician programs sit apart from the conventional path most buyers take. Not sure your credential is on a given lender's list? That's a two-minute answer once we see your file.

How are student loans counted?

Usually not the way you fear. A standard loan often counts a percentage of your total balance, which looks crushing when you owe six figures. Most physician loans instead count the payment on your income-driven plan, a deferred or forbearance amount, or in some cases set the deferred balance aside. How each program treats student debt varies by lender and tier.

The result is the same across programs: your qualifying ratio reflects what you actually pay each month, not the whole balance. That single difference is often the piece that turns a "no" into a "yes." If you're managing federal loans, the U.S. Department of Education explains income-driven repayment, and that documented payment is frequently what we can use. Self-employed or contract physicians have extra wrinkles here; our self-employed mortgage guide covers how variable income gets documented.

Can I qualify before I start the job?

Often yes. On many physician loans a signed employment contract or offer letter can stand in for pay stubs, so you can qualify and close around your start date instead of waiting until you've collected paychecks. The window ahead of your start date varies by lender, though it commonly reaches a couple of months out. Your credit, the property, and reserves still apply.

This is the feature that makes a relocation feasible. You accept the role, sign the contract, and get pre-positioned while you're still finishing training somewhere else. If a move is part of the plan, our relocation mortgage guide walks through the timing, and pairing it with a physician loan means you're ready to close the week you arrive rather than scrambling after.

Physician loan vs. conventional: side by side

Here's the honest comparison so you can see where you fit. Neither loan is "better" in the abstract — it depends on how much student debt you carry, how much you have to put down, and whether your job has started. Physician loans shine for doctors early in their careers; conventional loans can win once the debt is small and the income is seasoned.

Feature	Conventional loan	Physician loan
Down payment	Often more needed to avoid PMI	As little as 0% at some tiers*
Monthly PMI	Yes, below 20% down	None*
Student loans	Often a % of the full balance	Income-driven or deferred payment*
Income proof	Pay stubs / job already started	A signed contract can stand in*
Who's eligible	Anyone who qualifies	MD, DO, DDS/DMD, often DVM/CRNA/PharmD/DPM
Best fit	Seasoned income, small student debt	Residents, fellows, new attendings

*Exact tiers — down-payment bands, how student loans count, how far ahead of your start date you can close — vary by lender and program. Credit, the property, and reserves still apply. For loan amounts that reach into higher-balance territory, compare notes with our jumbo loan guide, since physician programs often carry high-balance financing without the usual jumbo down payment.

How a physician-loan file comes together

The build is simpler than most doctors expect. We start with your signed contract or current pay, your credential, and your credit. We count your student loans at the income-driven or deferred payment. We look at the down payment, often little to none, and a few months of reserves. Then we match it to a program with no monthly PMI. Because a signed contract can substitute for a job already underway, the timeline holds even before you've started.

To get moving, we mainly need three things: your signed employment contract or offer letter, proof of your credential, and a target price or budget. That's usually enough to map what you'd qualify for. From there we tell you straight whether now or a year from now is the smarter move — Mike would rather lose a deal than push you into the wrong one. When you're ready, our team can have your numbers back quickly. Talk to our team and we'll sort out where you stand. If you're buying your first home and want the wider view, the first-time buyer guide pairs well with this one.

Frequently asked questions

Who qualifies for a physician loan?

Physician loans are built for credentialed medical professionals, most commonly MD, DO, DDS, and DMD, and often DVM, CRNA, PharmD, and DPM. Residents, fellows, and new attendings all qualify, not only established doctors. Eligible credentials and career stages vary by lender and program, and credit, the property, and reserves still apply.

Do my student loans stop me from qualifying?

Usually not. A standard loan often counts a percentage of your total balance, which looks crushing when you owe six figures. Most physician loans instead count the payment on your income-driven plan, a deferred or forbearance amount, or in some cases set the deferred balance aside. How each program treats student debt varies by lender and tier.

Can I qualify before I start the job?

Often yes. On many physician loans a signed employment contract or offer letter can stand in for pay stubs, so you can qualify and close around your start date instead of waiting until you have collected paychecks. The window ahead of your start date varies by lender, and your credit, the property, and reserves still apply.

Do physician loans require PMI?

Most do not. A defining feature of physician loans is no monthly private mortgage insurance even when you put down less than 20 percent. That sets them apart from conventional loans, which typically add PMI below 20 percent down. Down-payment tiers range from as little as 0 percent up, and exact bands vary by lender and loan amount.

Program details, limits, and eligibility change and vary by state; confirm your scenario with our team. This is not a commitment to lend. Loans are subject to buyer and property qualification. Equal Housing Lender.