Physician Mortgage Loans - What You Need To Know
September 27, 2022
TLDR
Physician mortgage loans (doctor loans) are real, and they can be a perfect tool, specialty home loans designed for medical professionals who have high student debt, limited savings during training, and income that’s expected to rise quickly after residency. These programs exist because lenders view physicians as low-risk borrowers with strong long-term earning power, so they may be more flexible with underwriting—especially around student loans, debt-to-income ratios, and down payment requirements.
To qualify, you’ll still need to meet lender standards, but physician mortgage providers often handle student loans differently than traditional mortgages. Some may exclude student loans from your qualifying ratios if payments are deferred, while others may use your income-based repayment (IBR) amount instead of your full loan balance. The advantage is simple: a physician mortgage can help you buy a home sooner—without waiting years to save a large down payment—while still accounting for the realities of medical training and early-career finances.
If you want to compare physician mortgage options without wasting hours calling banks, Dr. Home Finance helps you review multiple programs quickly and match with the best fit based on your career stage, timeline, and financial profile.
Is there a physician mortgage?
A physician mortgage loan, also known as a doctor mortgage loan, may enable you to purchase a home faster if you are a doctor and may allow you to receive a loan at a better interest rate and length than you might otherwise be eligible for. A physician mortgage is a financial arrangement designed to accommodate the unique financial situation of medical professionals. You may still purchase a house even if you have a lot of educational debt with these loans.
Physician mortgage loans are offered because of the following reasons.
Lenders offering physician mortgage loans recognize that student loans are a part of life for doctors and therefore might not disqualify you because of your high student loan balance. Because there is always demand for qualified doctors, lenders offering physician mortgage loans recognize that doctors are typically low-risk borrowers. Doctors make a lot of money, but there is always demand for them, making them low-risk borrowers. Lenders feel that physicians present less risk than the average homebuyer, so they can be more generous about which doctors qualify and how much down payment and debt-to-income ratio is required.
There are certain criteria that must be met in order to qualify for a Doctor Mortgage loan.
When you apply for a physician mortgage loan, you may be able to qualify despite having substantial educational loans, if the lender has other policies allowing for deferred payments. Physicians who seek mortgage financing may not have a great deal of money when they finish their residency, but they will soon be earning more than enough to cover the down payment. Despite this, lenders still have some qualifying requirements that you must fulfill in order to obtain a physician home loan. Typically, for example, you will need all of the following in order to obtain this type of loan to purchase your first home: When evaluating your debt-to-income ratio, physician loan providers generally do not take into account your student loans. A high debt-to-income ratio is crucial because traditional lenders won't give you a loan if your monthly payments are greater than 43% of your income. Other lenders will assess your debt-to-income ratio based on the amount you pay under an income-based repayment plan. A physician mortgage lender might employ any method, but the key is that all such lenders are willing to overlook the fact that doctors have such high student loan balances when deciding whether to provide them with financing. Interested in learning more about physician mortgages? Here's what you need to know.
Compare Physician Mortgage Loans the Easy Way
As you can see, there are a number of banks that offer attractive mortgage loan programs for physicians. The best ones to apply for will depend on your unique needs. Unfortunately, comparing loan programs can be very time-consuming. That is why we are here. At Dr. Home Finance, our mission is to make it easy for doctors to find the best physician mortgage loans for their individual needs. Through us, you can contact multiple banks in one quick and easy form.
