How Physician Home Loans Help Residents Buy a Home Early
January 7, 2025
TLDR
Physician home loans can make buying during residency realistic—even if you’re fresh out of med school with student loans and no down payment saved. These programs are built for the way doctors start their careers: low-to-no money down (often no PMI), underwriting that’s more forgiving with student debt, and the ability to qualify using a signed contract (and sometimes match documentation) instead of years of income history.
The big hurdles for new residents are predictable—tight cash flow, heavy student debt, and uncertainty about relocating. A physician mortgage helps you get into a home without waiting years, and if you buy smart (stable location, conservative payment, plan to rent if you move), it can create options later. Sandi Frith at Fifth Third Bank is featured as an example of a lender who helps residents structure loans around mobility and long-term goals.
When you’re fresh out of medical school and starting your residency, buying a home might feel like a far-off dream. Physician home loans make it possible to turn that dream into reality without waiting years. Here’s how:
What Makes Physician Home Loans Different?
These loans cater specifically to medical professionals just out of residency and come with perks like:
No Down Payment: Need to buy a home right out of medical school for your family? Physician home loans often offers a solution.
Tailored Underwriting: Lenders know your unique financial situation, like a high debt-to-income ratio due to student loans, and adjust their criteria accordingly.
Career Transition Friendly: Many programs allow you to qualify with a signed employment contract instead of proof of current income. Some will allow you to use your match letter and transcripts as well.
Three Hurdles New Residents Face When Starting Residency
Starting residency is an exciting milestone, but it also comes with unique challenges that can make homeownership seem daunting. Here are three common hurdles residents face and how physician home loans can help:
Financial Constraints
Residency salaries are often modest compared to the years of education and student debt you’ve accumulated. This can make saving for a down payment or qualifying for a traditional mortgage difficult.
Solution: Physician home loans offer low or no down payment options and waive PMI, making homeownership more accessible.
Student Loan Burden
Many residents carry significant student loan debt, which can impact their debt-to-income ratio and ability to secure a conventional mortgage.
Solution: Physician home loans often exclude or reduce the impact of student loans when calculating your debt-to-income ratio, allowing you to qualify despite your debt.
Uncertain Future Plans
Residency may require relocating after a few years, making long-term commitments like homeownership feel risky.
Solution: By working with experienced lenders, like Sandi Frith at Fifth Third Bank, you can find flexible loan options tailored to your career stage and mobility needs. Sandi emphasizes that “You have worked hard to get to this point, you would be doing yourself a disservice to not take advantage of the tools you have access to.”
Expert Insights from Sandi Frith
Sandi Frith, Vice President and Mortgage Loan Officer at Fifth Third Bank, has extensive experience helping medical professionals navigate the home-buying process. She notes:
“Physician home loans are designed to accommodate the unique financial situations of medical professionals, particularly those early in their careers. Which is why it is perfect for new residents looking to start building wealth through real-estate”
“By purchasing earl in your career, you create more options further down the road. Not many people have put the work in that you have, so their advice and experiences don't match to your situation. Knowing that once you start your attending position, you wont have to sell your current home to buy another, gives you a distinct advantage over other people”
Should You Buy During Residency?
It depends on your situation. Consider:
Your Location: If you’re staying put for a while, buying can save you money compared to renting. Jump starting and diversifying your asset portfolio.
Your Budget: Stick to a home price that feels comfortable, even with your residency salary.
Future Plans: Think about how the home fits into your long-term goals. Will it work if you’re transferred or take a new position, would you be willing to rent it to incoming residents?
Taking the Next Step
Engaging with a knowledgeable mortgage loan officer can provide personalized guidance tailored to your circumstances. Professionals like Sandi Frith (Email: sandi.frith@53.com, Phone: 586.871.8002) specialize in physician home loans and can assist you in navigating the home-buying process.
Final Thoughts
Physician mortgages for residents are a great tool for new doctors. They let you focus on your career without worrying about high down payments or being penalized for student loans. By leveraging these benefits and consulting with experienced lenders, new medical professionals can make informed decisions about entering the housing market.
