Physician Loans in Real Estate: A Guide for Doctors Buying a Home
If you’re a doctor, dentist, or other medical professional, you might struggle to qualify for a traditional mortgage. High student loans and limited work history can be hurdles. A physician loan can help.
What Is a Physician Loan?
A physician loan is a special home financing program for medical professionals. Lenders recognize your future earning potential and adjust requirements accordingly.
- Low or zero down payment. You can put little to nothing down without private mortgage insurance.
- Flexible debt‑to‑income calculations. Student loan payments may be reduced or excluded.
- Qualify before your first paycheck. Use your employment contract to secure approval.
- Higher loan amounts. Finance more without strict jumbo loan rules.
How Physician Loans Differ from Conventional Mortgages
- Student Loans. Conventional loans count the full student loan payment, but doctor loans may not.
- Down Payment. Physician loans allow as little as 0% down and no PMI, saving hundreds per month.
- Income Verification. An employment contract can suffice, even before you start your job.
- Loan Limits. Physician loans often permit larger amounts than conventional loans.
- Interest Rates. Rates may be slightly higher, but skipping PMI offsets the difference.
- Closing Costs. Some lenders offer flexible options for medical professionals.
Who Qualifies?
- Medical doctors (MD, DO).
- Dentists (DDS, DMD).
- Veterinarians (DVM).
- Optometrists (OD).
- Residents or fellows with a signed employment contract.
Pros and Cons
- Pros: Buy a home sooner, avoid PMI, qualify despite high student loans, and finance a higher amount.
- Cons: Possible higher interest rates, lower initial equity with a small down payment, and temptation to overspend.
Steps to Apply for a Physician Loan
- Check your credit score and improve it if needed.
- Gather documents such as your employment contract, recent pay stubs (if available), and tax returns.
- Choose a lender experienced with physician loans.
- Compare doctor loans to conventional options to ensure the best fit.
- Work with a local real estate agent who understands the needs of medical professionals.
Is a Physician Loan Right for You?
If you want to buy a home in Winston‑Salem, Greensboro, or Lexington soon after finishing school, a physician loan may be your best path. It helps you overcome student loan obstacles and start building equity.
Questions about doctor loans? Reach out to Mantle Realty. We partner with lenders who specialize in physician mortgages and can guide you through the process.
