Physician Loans
Available in Georgia, Florida, South Carolina, Alabama, Tennessee
A physician loan is a portfolio mortgage for doctors that carries no mortgage insurance, allows loan amounts up to $2 million, and lets you qualify from a signed employment contract before your first paycheck. If you are in residency or fellowship, your student loan payments are left out of the debt ratio entirely.
How will my student loans be counted?
Conventional underwriting often uses a percentage of your outstanding balance as the monthly obligation when a loan is deferred or on an income-driven plan. For someone carrying six figures of medical school debt, that phantom payment alone can sink the debt-to-income ratio.
If you are in a residency or fellowship program, we leave your student loan payments out of the calculation entirely. Not a reduced payment. Out.
Once you finish training, student loans count as either 0.5% of the outstanding balance or your actual documented payment. On a $280,000 balance, 0.5% is $1,400 a month. If your documented income-driven payment comes in below that, we use the documented payment instead, so getting your servicer statement in hand before we run numbers can directly change what you qualify for.
Can I qualify before I start my job?
Yes. A signed employment contract dated up to 90 days before your start date can be used to qualify, which is what makes it possible to close before a residency or a new attending position begins.
Who qualifies for a physician loan?
Eligible degrees are MD, DO, DDS, DMD, PharmD, DVM, VMD, DPM, and CRNA holding a DNAP or DNP. That list runs wider than most physician programs, which frequently exclude pharmacists, podiatrists, and nurse anesthetists.
Residents and fellows are eligible. The program is for primary residences only.
| Requirement | Standard |
|---|---|
| Minimum down payment | 0% |
| Mortgage insurance | None |
| Minimum credit score | 680 |
| Maximum loan amount | $2,000,000 |
| Occupancy | Primary residence only |
| Employment contract | Up to 90 days before start date |
When a physician loan is the wrong choice
The physician rate runs slightly higher than conventional. With no mortgage insurance that usually still comes out ahead at low down payments, but if you have 20% saved and manageable student debt, a conventional loan may well cost less over time.
This program exists to solve a qualification problem. It is not automatically the better loan, and you should see both sets of numbers before deciding.
Common questions
Am I eligible as a resident or fellow?
Yes, and your student loan payments are left out of the debt ratio entirely while you are in training.
How will my student loans be counted after training?
Either 0.5% of your outstanding balance or your actual documented payment, whichever applies to your situation.
Can I qualify before I start my job?
Yes. A signed employment contract dated up to 90 days before your start date can be used to qualify, so you can close before your first paycheck.
Does it work for a second home or investment property?
No. The physician program is primary residence only. For a second home or an investment property, a 1099 or bank statement program may be the better route.
This is not a commitment to lend. Rates, programs, and terms are subject to change without notice. All loans are subject to credit approval and property qualification.