Thinking about buying a home near Abington before your first paycheck arrives? If you are a resident, fellow, or newly hired attending, the timing and debt juggle can feel overwhelming. Physician loans are built for your situation and can help you move sooner with less cash up front. In this guide, you will learn how these loans work, what to prepare, the timeline to expect in Montgomery County, and practical tips to align closing with your start date. Let’s dive in.
What a physician loan is
A physician loan is a specialty mortgage designed for medical professionals who have strong earning potential but limited savings or short employment history in their specialty. Many lenders keep these loans in house, so rules vary by lender.
Common features include:
- Low or no down payment options, often between 0 and 10 percent.
- No private mortgage insurance in many programs, even with a small down payment.
- Flexible income qualification that allows a signed employment contract as proof of income.
- More accommodating treatment of student loans and higher allowable debt-to-income ratios.
- Availability for residents, fellows, and attendings, with eligibility rules that differ by lender.
How it differs from other mortgages
Here is how physician loans typically compare to conventional, FHA, and jumbo options:
- Down payment and PMI: Physician programs often allow little or no money down and may waive PMI. Conventional loans usually require PMI below 20 percent down. FHA loans require mortgage insurance regardless of down payment.
- Income verification: Standard loans rely on pay stubs and tax returns. Physician loans often accept a signed contract with a future start date.
- Student loans: Conventional rules may count your actual payment or a percentage of the balance. Physician lenders commonly use more favorable assumptions, but methods vary by lender.
- Loan size: Physician loans can be conforming or jumbo. Many programs consider higher price points with physician-specific underwriting.
- Rates and costs: Rates can be similar to conventional loans or carry a small premium. Always compare full APRs and fee sheets across options.
- Portfolio programs: Many physician loans are proprietary products, so guidelines are not uniform. Expect differences by lender.
Who qualifies and what to bring
Eligibility is broad but program-specific. You can often qualify if you are a resident, fellow, or attending with a signed offer letter. Some lenders also include dentists and other allied professionals. Self-employed physicians may qualify but usually need additional documentation.
Bring these items to your preapproval:
- Signed employment contract or offer letter showing role, start date, and base salary. Include any guaranteed bonuses if available.
- If already working, recent pay stubs and W-2s.
- Student loan documents, including IDR statements or deferment letters.
- Standard mortgage items: credit check authorization, bank statements, and a photo ID.
- Credentials as requested, such as license or program verification.
Student loans are commonly treated in one of three ways: the actual payment, a percentage of the balance if no payment is reported, or a reduced assumption for IDR or deferment. The exact approach varies by lender, so confirm in writing.
Plan your timeline in Abington
Most physician buyers can go from offer to closing in 30 to 45 days if documents are ready. Some programs and motivated sellers can close faster, but plan on 30 days as a practical target. Appraisals often take 1 to 2 weeks. Underwriting usually takes 1 to 3 weeks, depending on how quickly you provide items.
Watch for these friction points:
- Start date vs. closing date: Many lenders allow qualification with a contract that starts within a defined window after closing. Confirm the allowed window early.
- Student loan paperwork: Servicers can be slow. Request IDR or deferment letters well before you apply.
- Scheduling: Book inspection and appraisal quickly and keep your calendar flexible.
- Relocation logistics: If you need occupancy before your start date, discuss rent-back or early occupancy timing with your agent and lender.
An 8 to 12 week checklist
- Weeks -8 to -6: Gather your contract, student loan statements, and bank statements. Talk with a mortgage professional experienced in physician loans to confirm program fit. Map Abington-area neighborhoods with your commute to Abington Jefferson Health and other Philadelphia hospitals in mind. Consider PA-611, I-76, and SEPTA regional rail options.
- Weeks -6 to 0: Get preapproved, start touring, and make offers with standard contingencies. Ask your lender how your start date impacts closing.
- Contract to close (4 to 6 weeks): Schedule inspections and appraisal fast. Respond to underwriting conditions within 24 hours. Align the closing date with your move and job start.
- Post-close: Switch utilities, update your address, and review your homeowners insurance and property tax setup. If needed, plan for any local licensing or professional paperwork.
Local tips for Montgomery County buyers
- Commute planning: Proximity to Abington’s hospital campuses and access to PA-611, I-76, and SEPTA regional rail can reduce stress during your first months on service.
- Property taxes and schools: Montgomery County costs vary by township and school district boundaries. Get accurate property tax figures from official records or current listings to understand your monthly payment. Use neutral, factual sources and confirm numbers during due diligence.
- Housing stock: Expect a mix of single-family homes, townhouses, and older-suburb properties. Inventory and pricing shift with market cycles. Check current local market reports to set expectations.
- Closing process: Pennsylvania closings typically involve a settlement agent or attorney. Your agent will coordinate the title company, settlement statement, and keys.
Pros and trade-offs to weigh
Advantages include:
- Faster path to ownership if you are early in your career.
- Ability to qualify on a signed contract tied to your start date.
- Reduced monthly cost when PMI is waived, even with a low down payment.
Trade-offs and risks:
- Rates and fees can be slightly higher than a conventional 20 percent down loan.
- Program variability means each lender may handle student debt, DTI, and loan size differently.
- Overborrowing risk if you stretch for price before your income stabilizes.
- Portfolio terms can affect future refinancing options.
Best practices:
- Get preapproved with a physician-loan specialist and share your contract upfront.
- Compare written loan estimates from multiple lenders, including a conventional option.
- Confirm in writing how your student loans will be treated and whether that is locked at preapproval.
- Build a conservative budget that accounts for property taxes, insurance, HOA fees, and commuting costs.
How to buy sooner with local guidance
A local team that understands physician loans can reduce delays and stress. With MD Solutions-style lender navigation, you can compare programs that fit your timeline, align closing with your start date, and negotiate occupancy details that work for your schedule. You stay focused on training and onboarding while your team coordinates the moving parts.
If you want a neighborhood-savvy partner in Abington and across Montgomery County, reach out to Sean Ryan. We will help you map commute options, target the right homes, and coordinate a lender path that matches your contract and start date.
FAQs
Can residents and fellows get physician loans in Abington?
- Many lenders offer programs for residents and fellows if you provide a signed contract or program verification and meet their documentation rules.
Will my student loans prevent me from qualifying for a physician loan?
- Not necessarily. Physician lenders often use more favorable calculations for IDR or deferred loans, but the exact method varies by lender and should be confirmed in writing.
Do physician loans require PMI in Montgomery County?
- Many physician loan products waive PMI even with low down payments, but this depends on the specific lender and loan program.
How close to my start date can I close on a home?
- Lenders often allow closing with a start date within a set window, commonly measured in days or months. Ask your lender for their exact allowable timeframe.
Are physician loans government-backed like FHA or VA?
- No. Physician loans are generally private portfolio or conventional products, not FHA or VA loans.
Are interest rates higher on physician loans than conventional loans?
- Rates can be similar or carry a small premium. Compare APRs, fees, and total costs across multiple lenders to see what fits your situation.
