Doctor Loans
Medical professionals face a strange contradiction when it comes to buying a home: strong, stable long-term income, but often high student loan debt and limited savings early in a career. A Doctor Loan (sometimes called a physician loan) is built specifically to solve that problem, recognizing your earning potential instead of penalizing you for the path it took to get there.
What Makes Doctor Loans Different
Low or No Down Payment
Many programs offer up to 100% financing, no need to wait years to save 20% down.
No PMI
No private mortgage insurance, even with little or nothing down, unlike a conventional loan.
Flexible Student Loan Treatment
Deferred or income-driven repayment amounts are often used instead of your full loan balance, which can meaningfully improve your DTI.
Future Income Recognized
A signed employment contract, even with a future start date, can often be used to qualify, useful for residents and fellows relocating for a new position.
Who Typically Qualifies
Doctor loan eligibility varies by lender and program, but generally includes:
- Medical doctors (MD, DO), dentists, and other doctoral-level healthcare professionals, including residents and fellows
- Depending on the program, nurses, nurse practitioners, physician assistants, clinical nurse specialists, and chiropractors may also qualify
- A primary residence purchase or rate-and-term refinance, not typically available for investment properties
- Solid credit, generally in the 660+ range, though specifics vary by lender and program tier
A Real Example: How These Programs Are Structured
Doctor loan programs typically come in tiers based on profession and credit profile. Here’s a concrete example of how that structure works in practice:
Physician Tier
Geared toward physicians and other doctoral-level medical professionals, including residents, fellows, and interns.
- Up to 100% financing
- No mortgage insurance
- Loan amounts up to $2 million
- Deferred or forbearance student loan payments can often be excluded for residents/fellows
Extended Healthcare Tier
Broader eligibility, including registered nurses, nurse practitioners, physician assistants, clinical nurse specialists, and chiropractors.
- Up to 97% financing, no mortgage insurance
- DTI up to 50%
- Primary and second homes
- Loan amounts up to $3 million for qualified borrowers with 700+ credit
Worth knowing: physician mortgage programs aren’t standardized across the industry. Two lenders can both call something a “doctor loan” and have meaningfully different rules on eligibility, down payment, and loan limits. I work with multiple lending partners offering doctor loan programs, which means I can compare your options rather than fit you into just one.
Is a Doctor Loan Right for You?
A doctor loan tends to make the most sense if you have less than 20% saved for a down payment, your student loan debt would otherwise push your DTI too high for conventional financing, or you need to close before your attending salary officially starts. If you already have 20% down and a manageable DTI, it’s still worth comparing against a conventional loan, since doctor loan rates typically run slightly higher as the tradeoff for no PMI and more flexible underwriting. I’ll run the numbers both ways so you can see which actually costs less.
Common Questions About Doctor Loans
Can I qualify for a doctor loan while still in residency?
Often, yes. Many programs allow you to qualify using a signed employment contract for your upcoming attending position, even if you haven’t started earning that income yet. This is one of the biggest advantages over conventional financing, which typically wants an established income history.
Are doctor loan interest rates higher than conventional loans?
Often slightly, typically a quarter to half a percent higher than a comparable conventional or jumbo loan. That’s generally the tradeoff for no PMI, higher loan-to-value financing, and more flexible student loan treatment. Whether it’s worth it depends on your specific numbers, which is worth running together.
Can I use a doctor loan for a second home or investment property?
It depends on the specific program. Most doctor loans are restricted to a primary residence, though some expanded programs (like certain tiers that include nurses and PAs) do allow second homes. Investment properties are generally not eligible under standard doctor loan terms.
Will every lender treat my student loans the same way?
No, and this is one of the biggest differences between programs. Some lenders use your actual income-driven repayment amount, others exclude deferred payments entirely for residents and fellows, and some still count a percentage of your total balance. This is exactly why comparing multiple lenders matters instead of assuming all “doctor loans” work the same way.
