Reviewed by the Editorial Team · Updated July 10, 2026 · 6 min read
A physician loan is a specialty mortgage for MDs, DOs, dentists, and often residents or fellows, offering low or zero down with no PMI even under 20% down and lenient treatment of student-loan debt.
Key takeaways
A physician loan is a specialty mortgage for doctors, dentists, and often residents or fellows, offering low or no down payment.
No PMI applies even under 20% down, a benefit conventional borrowers only get once they reach that equity threshold.
Lenders treat student loan debt leniently and will often close on a signed employment contract before a new job even starts.
Rates can run above conventional pricing, and the product is limited to specific medical and dental degrees at fewer lenders.
Min. down payment
0-10% typical, varies by lender
Mortgage insurance
None, even under 20% down
Key perk
Can close on a signed employment contract
Best for
New doctors, residents & fellows with thin savings
How a physician loan works
Physician loans are a portfolio product, held by the lender rather than sold to Fannie Mae or Freddie Mac. That lets the bank waive rules a conventional loan can't, betting on future earning power instead of a current balance sheet.
Eligible borrowers: MDs, DOs, dentists, often residents, fellows, and sometimes veterinarians or attorneys
Student-loan debt often counted at a reduced or income-driven payment in DTI
Can close before a job even starts, using a signed employment contract
The employment-contract close
Most conventional lenders want pay stubs. Physician loan programs will close using a signed offer letter or contract with a start date typically within 60-90 days, which is why new residents can buy before their first paycheck.
Where the convenience costs you
The no-PMI perk isn't free. Physician loans often carry a slightly higher interest rate than a conventional loan would charge the same borrower with 20% down.
Most programs are also restricted to a primary residence, not a rental or vacation property, and the low down payment can tempt buyers into more house than their post-training budget can comfortably carry.
THE OVER-BORROWING RISK
Qualifying for a large loan on future income doesn't mean the payment fits a resident's or new attending's actual budget — run the numbers against take-home pay, not just approval.
Who a physician loan fits
These loans fit doctors and dentists early in their careers, when savings are thin but income is about to change sharply.
Residents or fellows with a signed contract and a near-term start date
New attendings with high student-loan balances but strong future income
Buyers with little saved for a down payment but stable employment
Anyone buying a primary residence, not an investment property
Compare the physician loan's rate against a conventional loan with PMI before assuming zero-down automatically wins — PMI cancels, and a physician loan's rate premium doesn't.
Physician & Doctor Loans: pros and cons
Pros
Little or no down payment required
No PMI even under 20% down
Student loan debt treated leniently
Open to residents and fellows
Cons
Rates can run above conventional loans
Limited to certain medical and dental degrees
Loan limits vary widely by lender
Fewer lenders means less rate shopping
Requirements at a glance
Eligible degree — MD, DO, DDS, DMD, and often residents, fellows or veterinarians
Signed employment contract with a start date, if not yet employed
Credit score generally in the high 600s or above
Primary residence only at most lenders
Student-loan debt documented, often qualified at a reduced payment
Program limited to one physician loan per borrower at a time in most cases
It's a specialty mortgage for doctors, dentists, and often residents or fellows that allows low or zero down with no PMI. Lenders offer it as a portfolio product, betting on a physician's future income rather than current savings.
Who qualifies for a physician loan?
MDs, DOs, and dentists typically qualify, and many programs extend to residents, fellows, and sometimes veterinarians or attorneys. A signed employment contract can substitute for current pay stubs if you haven't started the job yet.
Do physician loans require PMI?
No — that's the program's signature feature. Physician loans skip private mortgage insurance even with 0-10% down, though the trade-off is usually a somewhat higher interest rate than a conventional loan with PMI.
What is the monthly payment on a $400,000 loan at 7%?
A $400,000 mortgage at a 7% fixed rate over 30 years runs about $2,660 a month in principal and interest alone — taxes, insurance, and any HOA dues add more on top. html">mortgage calculator first.
How to qualify for a physician's loan?
Lenders typically want proof of a medical degree (MD, DO, DDS, DMD, DVM, or similar), an employment contract or offer letter showing income, and a credit score in the high 600s or better.
Many programs accept residents and fellows before their attending salary starts and exclude deferred student debt from the debt-to-income calculation.
Do physician loans still exist?
Yes — physician loans remain widely available through credit unions, regional banks, and national lenders that specialize in medical professionals.
Down payment minimums, loan limits, and eligible degrees vary by lender, so terms are worth comparing rather than assuming one program's rules apply everywhere.
This guide is general information, not a lending decision. Program rules and dollar limits change — verify current figures with a licensed lender and confirm licensing at NMLS Consumer Access. See all loan types.
No calculator matches that. Try “refinance”, “FHA”, “HELOC” or “amortization”.