Physician Mortgage Loans 2026: 0% Down, No PMI for Doctors

Physician mortgage loans offer unique benefits specifically designed for medical professionals: 0% down payment options, no [private mortgage insurance](/blog/mortgage-insurance-pmi-guide) (PMI), and flexible underwriting that accounts for the realities of medical careers—including substantial student loan debt and limited credit history during residency.

In 2026, as medical professionals face average student loan debt exceeding $250,000, physician mortgages provide crucial pathways to homeownership that conventional loans can't match.

What Is a Physician Mortgage Loan?

A physician mortgage is a specialized loan product designed exclusively for medical professionals (physicians, dentists, and sometimes other healthcare providers). These loans recognize that doctors have unique financial profiles: high earning potential, substantial student debt, and delayed career starts due to extensive education and training.

Key Features of Physician Loans

0-10% down payment: Most programs offer 0% down up to certain loan amounts ($750,000-$1,000,000), then 5-10% beyond.

No PMI: Unlike conventional loans requiring PMI with less than 20% down, physician loans waive this costly requirement.

Student loan flexibility: Special treatment of student loan debt in DTI calculations, often using actual payment or 0.5% of balance rather than standard 1%.

Contract-based approval: Residents and fellows can qualify based on signed employment contracts before starting their attending position.

Higher loan limits: Jumbo loan amounts available with favorable terms not typically offered to other professions.

Flexible DTI: Debt-to-income ratios often extended to 45-50%, accommodating student loan debt.

Who Qualifies for Physician Mortgages?

Eligible Professions

Physicians:

• Medical doctors (MD)
• Doctors of osteopathic medicine (DO)
• Residents and fellows
• Attending physicians
• All specialties (primary care, surgery, anesthesiology, etc.)

Dentists:

• Doctors of dental surgery (DDS)
• Doctors of dental medicine (DMD)
• Oral surgeons
• Orthodontists
• Periodontists

Other Medical Professionals (lender-dependent):

• Podiatrists (DPM)
• Optometrists (OD)
• Veterinarians (DVM)
• Pharmacists (PharmD) - select lenders
• Physician assistants - very select lenders
• Nurse practitioners - rare

Verification required:

• Medical degree from accredited institution
• Active medical license (or in process for residents)
• Employment verification or signed contract

Career Stage Requirements

Medical students: Generally not eligible (no income yet).

Residents and fellows:

• Eligible with most lenders
• May require signed employment contract for attending position
• Some lenders approve based on residency income alone

Attending physicians:

• Fully eligible
• Best rates and terms
• Highest loan amounts

Established physicians:

• All standard benefits
• May qualify for portfolio products with additional flexibility
• Private banking relationships for high-net-worth doctors

Geographic and Timing Restrictions

Location: Must be within 60 days of starting new position (for contract-based loans).

Timing windows:

• Up to 90 days before contract start date
• Within 12 months of completing residency/fellowship
• Some lenders extend to 10 years post-graduation

Relocation: Many programs specifically designed for physicians relocating for new positions.

Physician Loan Benefits Explained

Zero Down Payment (0% Down)

Purchase a home with no down payment up to certain limits:

Typical structures:

• 0% down up to $750,000 - $1,000,000 (varies by lender)
• 5-10% down from $750,000 - $1,500,000
• 10-20% down above $1,500,000

Example 1: $650,000 home = 0% down payment ($0 out of pocket for down payment)

Example 2: $1,200,000 home with lender offering 0% up to $1,000,000:

• First $1,000,000: 0% down
• Additional $200,000: 5% down = $10,000
• Total down payment: $10,000 (0.83% of purchase price)

Why this matters: Allows you to preserve cash for:

• Student loan payments
• Licensing and board exam fees
• Practice startup costs
• Emergency reserves
• Investment opportunities

No PMI Requirement

Conventional loans require PMI with less than 20% down, costing 0.5% - 1.5% of loan amount annually:

$600,000 loan conventional vs. physician loan:

• Conventional with 5% down: PMI = $3,000 - $9,000/year ($250-$750/month)
• Physician loan with 0% down: $0 PMI

Savings: $250-$750/month ($3,000-$9,000/year) until reaching 20% equity (could take 5-10 years).

Why this matters: PMI provides no benefit to you—it protects the lender. Physician loans recognize your earning potential justifies the risk without PMI.

Student Loan Debt Flexibility

Conventional loans calculate student loan debt harshly in DTI:

Conventional calculation:

• Uses actual payment if on payment plan
• Uses 1% of balance if in deferment/forbearance
• $300,000 student loans = $3,000/month assumed payment

Physician loan calculation (varies by lender):

• Uses actual payment (even if $0 during forbearance)
• Uses 0.5% of balance (vs. 1%) = $1,500/month on $300,000
• Some lenders exclude student loans entirely if in deferment
• Some use IBR/PAYE payment amounts

Impact on qualification:

Example: $250,000 income, $300,000 student loans

Conventional loan:

• Assumed student loan payment: $3,000/month
• Maximum housing payment at 43% DTI: $8,958 - $3,000 = $5,958
• Qualifying loan amount: ~$900,000

Physician loan (using 0.5% calculation):

• Assumed student loan payment: $1,500/month
• Maximum housing payment: $8,958 - $1,500 = $7,458
• Qualifying loan amount: ~$1,200,000

Difference: $300,000 more buying power

Contract-Based Income Qualification

Residents/fellows can qualify using signed employment contracts:

How it works:

• Sign employment contract for attending position
• Contract shows salary, start date, benefits
• Lender uses contract income for qualification (not residency income)
• Can close before starting new job

Example:

• Current resident income: $65,000
• Signed attending contract: $325,000 starting in 3 months
• Lender qualifies you at $325,000 income
• Can purchase home before starting attending position

Requirements:

• Fully executed employment contract
• Start date within 60-90 days of closing
• Verification directly with employer
• No gaps between residency end and attending start

Higher Debt-to-Income Ratios

Physician loans typically allow 45-50% DTI vs. conventional 43%:

$300,000 annual income:

• Conventional max debt: $10,750/month (43%)
• Physician loan max debt: $11,875/month (47.5% average)
• Additional capacity: $1,125/month

This extra capacity accommodates student loans while maintaining reasonable housing budgets.

Current Physician Loan Rates (February 2026)

Physician loan rates are generally competitive with conventional loans, sometimes slightly higher due to higher risk (0% down, no PMI):

Conforming loan amounts (up to $806,500):

• 30-year fixed: 6.75% - 7.25%
• 15-year fixed: 6.00% - 6.50%
• 7/1 ARM: 6.25% - 6.75%

Jumbo loan amounts (above $806,500):

• 30-year fixed: 7.00% - 7.50%
• 15-year fixed: 6.25% - 6.75%
• 7/1 ARM: 6.50% - 7.00%

Rate factors:

• Credit score (740+ gets best rates)
• Down payment (10% vs. 0% saves ~0.25-0.50%)
• Loan amount (lower amounts = better rates)
• Property type (condos slightly higher)
• Lender relationship (existing customer discounts)

Premium vs. conventional: Physician loans typically run 0.125% - 0.50% higher than comparable conventional loans with 20% down, offset by PMI savings with low down payments.

Physician Loan Requirements

While more flexible than conventional loans, physician loans have standards:

Credit Score

• Minimum: 680-700 (varies by lender)
• Standard: 720-740
• Best rates: 760+
• Recent graduates: Limited credit history acceptable with medical degree verification

Employment [Documentation](/blog/heloc-documentation-requirements)

Attending physicians:

• Employment verification letter
• Recent pay stubs (30-60 days)
• W-2s (if employed 2+ years)
• Contract physicians: signed agreements

Residents/fellows:

• Current employment verification
• Signed attending employment contract (if using future income)
• Medical license number (or in-process documentation)

Student Loan Documentation

• Current statements showing balances
• Payment plan documentation (if applicable)
• Forbearance/deferment notices
• Proof of payment history

Reserves

• Minimum: 0-3 months (much lower than conventional)
• Preferred: 6-12 months
• Calculation: Principal, interest, taxes, insurance
• Accounts: Checking, savings, investment accounts, retirement (60-70% of value)

Example: $4,500 monthly payment requires $0-$13,500 in reserves minimum, $27,000-$54,000 preferred.

Property Requirements

• Primary residence only (most programs)
• Single-family, condo, townhome
• Warrantable condos
• Full appraisal required
• Property in reasonable condition

Loan Limits

Conforming physician loans (up to $806,500):

• Often 0% down available

Jumbo physician loans:

• $1,000,000 - $2,000,000+
• Down payment requirements increase with loan size:
  • $750,000 - $1,000,000: Often 0% down
  • $1,000,000 - $1,500,000: 5-10% down
  • $1,500,000 - $2,000,000: 10-15% down
  • Above $2,000,000: 15-20% down

Major Physician Loan Lenders

Many banks offer physician loan programs:

National Banks

• Bank of America: Up to $1,000,000 with 0% down
• Chase: Doctor mortgage up to $750,000 with 0% down
• TD Bank: Physician program with flexible terms
• Huntington Bank: Doctor loan program

Regional Banks

• SunTrust/Truist: Physician loan program
• Regions Bank: Doctor mortgage options
• Fifth Third Bank: Physician preferred mortgage

Specialized Lenders

• Laurel Road: Dedicated physician mortgages
• Spring EQ: Focus on medical professionals
• Doc2Doc Lending: Physician-to-physician lending

Credit Unions

• Navy Federal (if eligible): Doctor loan options
• PenFed: Medical professional programs
• Local medical credit unions

Recommendation: Compare at least 3-5 lenders. Rates, loan limits, and terms vary significantly.

Physician Loan vs. Conventional Loan

Advantages of Physician Loans

1. Preserve Cash Flow

Start your career with minimal out-of-pocket costs:

• No down payment needed
• Closing costs often your only expense
• Keep cash for student loans, moving, practice costs

2. No PMI Savings

Save $250-$750/month on PMI:

• $3,000-$9,000/year savings
• $15,000-$45,000 saved over 5 years
• Money available for student loan prepayment or investing

3. Qualify Despite Student Debt

Favorable student loan treatment means:

• Qualify for larger loans
• Don't need to wait years to pay down debt
• Purchase home earlier in career

4. Contract-Based Purchasing

Close on home before starting attending position:

• Move once instead of [temporary housing](/blog/dscr-loan-corporate-housing)
• Lock in housing before starting new job
• Avoid renting in new city

5. Career-Stage Flexibility

Programs designed for physician career arc:

• Residents with limited income can qualify
• New attendings with no employment history accepted
• Limited credit history overlooked

Disadvantages and Considerations

1. Slightly Higher Rates

Premium of 0.125% - 0.50% over conventional:

• $500,000 loan at 7.00% vs. 6.75%: $35/month more ($420/year)
• Offset by PMI savings if putting less than 20% down

2. Limited to Medical Professionals

Must be physician, dentist, or select medical professionals:

• Spouses who aren't medical professionals may not qualify
• If you leave medicine, may lose refinance eligibility

3. Primary Residence Only

Most programs restricted to primary homes:

• Can't use for investment properties
• Can't use for vacation homes
• Single-family primary residence requirement

4. Starting with No Equity

0% down means:

• No equity cushion if values decline
• Higher total interest over loan life
• Must pay to sell in first few years (closing costs exceed equity)

5. Risk of Overextension

Easy qualification can lead to buying too much house:

• Student loans still exist even if minimized in DTI
• Practice startup costs may be higher than expected
• Lifestyle inflation trap

Strategic Considerations for Physicians

Should You Put 0% Down?

0% down makes sense if you:

• Have high-interest student loans (>6-7%) to prioritize
• Want to invest the difference (expecting >7% returns)
• Are early in career building emergency reserves
• Plan to stay in home 5+ years
• Are relocating and need cash for transition

Consider 10-20% down if you:

• Have minimal student debt
• Want lower monthly payments
• Plan to sell within 3-5 years (equity cushion for selling costs)
• Prefer lower financial leverage
• Can get better rate with down payment

Timing Your Purchase

Buy during residency if:

• You're certain about staying in the area post-residency
• Rental costs exceed ownership costs
• You have signed contract for attending position locally
• Home values are appreciating

Wait until attending if:

• Uncertain about long-term location
• Plan to relocate for fellowship or attending position
• Residency in high-cost area, attending in lower-cost area
• Want to see employment situation before committing

Student Loan Strategy

Pay minimums and buy home if:

• Student loan rates below 4-5%
• Investing difference in retirement accounts
• Need housing urgently (family, commute, etc.)

Pay down debt before buying if:

• Student loan rates above 6-7%
• Uncomfortable with high debt-to-income
• Want lowest possible monthly obligations
• Not in rush to purchase

Real-Life Physician Loan Examples

The New Attending Physician

Dr. Sarah, 32, completes her residency and signs a contract for $285,000 as a hospitalist starting in 2 months. She has:

• Student loans: $275,000
• Savings: $35,000
• Credit score: 755
• No employment history beyond residency

She uses a physician loan to purchase a $550,000 home:

• Down payment: 0% ($0)
• Loan amount: $550,000
• Closing costs: $12,000 (paid from savings)
• Rate: 7.00%
• Monthly payment (PITI): $4,150
• PMI: $0 (saved $550/month)
• Qualified using contract income

The Established Physician

Dr. Michael, 45, established surgeon earning $525,000 annually with $125,000 remaining student debt. He's buying a $1,800,000 home:

• 0% down on first $1,000,000
• 10% down on remaining $800,000 = $80,000
• Total down payment: $80,000 (4.4%)
• Loan amount: $1,720,000
• Rate: 7.25%
• Monthly payment (PITI): $13,750
• PMI: $0 (saved $1,200/month)

The Relocating Resident

Dr. Jennifer, 31, finishing fellowship, signed contract for $265,000 starting in 90 days. She's relocating and buying a $425,000 home:

• Current income: $68,000 (fellowship)
• Contract income: $265,000
• Student loans: $310,000
• Down payment: 0%
• Loan amount: $425,000
• Qualified using contract income
• Student loans calculated at 0.5% ($1,550/month vs. $3,100)

She closes 30 days before starting new position, moves directly to her new home.

Frequently Asked Questions

Can dentists qualify for physician loans?

Yes, most physician loan programs include dentists (DDS, DMD). Some programs also include oral surgeons, orthodontists, and other dental specialists. Requirements are typically identical to physicians.

Do I need to be board certified?

No, board certification is not required. You need a medical degree (MD or DO) from an accredited institution and an active medical license (or in process for residents). Residency and fellowship training suffice for qualification.

Can I use a physician loan for a second home or investment property?

Most physician loan programs are restricted to primary residences only. A few lenders offer programs for second homes with higher down payments (10-20%). Investment properties typically don't qualify for physician loan benefits.

What if I'm a physician assistant or nurse practitioner?

Very few lenders extend physician loan benefits to PAs or NPs. Most programs strictly limit eligibility to MDs, DOs, DDSs/DMDs, and select doctoral-level medical professionals (podiatrists, veterinarians). Check with individual lenders for specific policies.

Can my non-physician spouse be on the loan?

Yes, you can have a non-physician co-borrower (typically a spouse). The physician must be on the loan to qualify for physician loan benefits. Some lenders require the physician to be the primary borrower.

How long after finishing residency can I use a physician loan?

Most lenders allow physician loan benefits within 10 years of completing residency or fellowship. Some lenders have no time limit—established physicians decades into their career can still qualify if they meet other requirements.

Can I refinance a [conventional mortgage](/blog/conventional-loan-requirements) into a physician loan?

Generally no. Physician loans are primarily for purchases, not refinances. Some lenders offer physician refinance programs, but they typically don't include all the same benefits (especially 0% down). Conventional refinancing is usually a better option for existing mortgages.

What happens if I leave medicine?

Your existing physician loan remains valid with the same terms. However, if you need to refinance or modify the loan, you may no longer qualify for physician loan programs and would need to use conventional refinancing.

Are there downsides to 0% down physician loans?

Yes: you start with zero equity, pay more total interest over the loan life, and face risks if home values decline or you need to sell quickly (closing costs exceed equity in early years). However, if you have high-interest student debt or better investment uses for cash, 0% down can be strategically sound.

Can I use a physician loan for a [construction loan](/blog/construction-loan-guide)?

Some lenders offer physician construction loans with similar benefits (low down payment, no PMI), but they're less common than physician purchase loans. Check with lenders specializing in physician mortgages about [construction-to-permanent loan](/blog/construction-loan-types) options.

Is a Physician Loan Right for You?

Physician mortgages offer exceptional benefits for medical professionals, but they're tools—not automatic choices. The right decision depends on your specific situation, career stage, and financial goals.

A physician loan makes sense if you:

• Are a physician, dentist, or eligible medical professional
• Have limited savings for down payment (below 20%)
• Have substantial student loan debt
• Want to avoid PMI
• Are relocating for a new position
• Want to purchase before starting attending position

Consider conventional financing if you:

• Have 20%+ down payment available
• Minimal student debt
• Can qualify conventionally with better rates
• Want maximum flexibility (conventional loans easier to refinance)

Next Steps: Explore Physician Mortgage Options

As a medical professional, you've dedicated years to rigorous education and training. You deserve a mortgage program that recognizes your unique financial profile and supports your homeownership goals without forcing you to wait years or drain your savings.

Physician mortgages provide the specialized financing medical professionals need—combining 0% down options, no PMI, student loan flexibility, and contract-based approval into comprehensive programs designed specifically for your career path.

Ready to explore physician mortgage options and find out how much home you can afford? Get started today to speak with a mortgage specialist experienced in physician loans who can analyze your specific situation, explain your options, and help you secure financing that supports both your homeownership dreams and your broader financial goals.

Your medical degree earned you this specialized mortgage option—now it's time to use it.

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