What is a Physician’s Mortgage Loan?

A physician mortgage loan (AKA a Doctor Loan) is a specialized type of home loan designed for medical professionals, including doctors and dentists, that often feature low or even no down payment requirements and waive the PMI normally needed when putting down less than 20%. These loans acknowledge the high earning potential of medical professionals and their often significant student loan debt, offering more flexible lending terms than conventional mortgages. 

Key Features of Physician Mortgage Loans:

  • Lower or No Down Payment

  • Offers the ability to finance up to 100% of the purchase price of the home. 100% financing is usually capped at a certain limit.

  • Stands for Private Mortgage Insurance. This is a monthly fee added to a loan payment to help protect against default. Physician loans typically don't require PMI even with a low down payment, which can save borrowers a substantial amount of money.  

  • They may offer higher loan amounts than conventional mortgages, potentially allowing medical professionals to purchase more expensive homes under this program.


  • Some physician loans may be more flexible with DTI calculations, especially as it pertains to student loan debt.

  • Some lenders allow physicians to close on a loan before their official start date with a new employer, providing flexibility for relocation. This is called “future income” and not all lenders allow this. Those that do may charge additional fees for this consideration.

Who Qualifies For a Physician’s Mortgage?


 While generally all Medical Doctors and Dentists, as well as residents and fellows, qualify for this loan program, some medical professionals do not. For example, an optometrist is not a medical doctor, but an ophthalmologist is. Each lender determines who they will allow to participate in this special program, so it is best to ask the mortgage professional if there are questions.

 In addition to the type of medical professional you are, there are also standard mortgage qualifying requirements, such as credit scores. Generally speaking, a lender wants to see a credit score of at least 700, possibly higher, to be eligible for this loan program. Again, each lender will determine the minimum qualification standards for their program, so it is best to ask them if you have a concern in this area.


Are the Interest Rates and Fees Better or Worse Than a Conventional Loan?


 There can be an offset to account for these low to no down payment lending programs and for them not having PMI but this can vary widely between lenders. Some lenders will charge a higher rate across the board, some will charge higher fees, some will do both and some (although few) will do neither. This is why it is important to get a detailed cost estimate from the lender which will show the rate as well as the fees associated with your loan. And remember that mortgage interest rates change daily so what you see today may not be true tomorrow!

Are There Certain Property Types Where a Physician’s Loan Cannot Be Used?


  For the most part, a single family residential home being used as one’s primary residence are the most common and accepted use for a Physicians Mortgage. Townhomes and Condominiums are also generally considered acceptable as property types as well but could have some different requirements for the loan. Most lenders will allow a second home purchase as well but could have different rates and requirements associated with them. Using a Physicians Loan to purchase an investment property is not something lenders will usually allow due to the additional risks associated.