Physician's Loans
A physician’s loan (also called a doctor’s loan) is a special type of mortgage designed for medical professionals. Here are the top five benefits of a physician’s loan:
1. Little to No Down Payment
Many physician loans require 0% to 5% down, making homeownership more accessible for doctors who may have significant student debt.
2. No Private Mortgage Insurance (PMI)
Unlike conventional loans that require PMI for down payments under 20%, physician loans waive PMI, reducing monthly mortgage costs.
3. Higher Loan Limits
Lenders often approve higher loan amounts than conventional mortgages, recognizing doctors’ strong earning potential.
4. Flexible Debt-to-Income (DTI) Ratios
Lenders may exclude student loans from the DTI calculation, making it easier for physicians to qualify even with high educational debt.
5. Special Consideration for New Doctors
Unlike traditional loans that require proof of income history, physician loans allow new doctors to qualify with an employment contract, even before they start working.
