The Doctor’s Guide to House Hacking with a Physician Mortgage
June 21, 2024
TLDR
House hacking is when you buy a duplex (or small multi-unit), live in one unit, and let the rent from the other unit(s) help cover your mortgage—sometimes making your own housing cost surprisingly low. For residents and new attendings, the win is that you can lock in stable housing, build equity while you train, and use the flexibility of certain physician mortgage programs (low down, no PMI, contract-based qualifying) to pull it off earlier than most people think.
The article also keeps it real: not every doctor loan allows multi-units, landlord life is still landlord life, and you need to run the numbers and plan your exit (sell after training or refi later). Bottom line—if you’re open to a duplex and your market supports rentals, house hacking can turn your first home into a wealth-building move instead of just another monthly payment.
What Is House Hacking—and Why Should Doctors Care?
“House hacking” is the strategy of buying a multi-unit property (like a duplex or triplex), living in one unit, and renting out the others. The rental income helps cover your mortgage, often reducing your out-of-pocket housing cost to nearly zero. For physicians, especially residents and new attendings, house hacking offers unique advantages:
Stability: Lock in housing during training instead of being at the mercy of rent hikes.
Wealth-Building: Tenants help pay down your mortgage while you gain equity.
Leverage Physician Loans: Combine low down payment and no PMI with rental income.
The result? Faster financial growth than simply renting or buying a single-family home.
Why Physician Mortgages Make House Hacking Possible
Normally, lenders shy away from giving low-down-payment loans on multi-unit properties. But physician mortgages are designed differently. These programs:
Require little or no down payment
Waive private mortgage insurance (PMI)
Allow doctors to qualify using employment contracts
Often exclude income-based student loans from debt-to-income (DTI) ratios
That flexibility means a duplex isn’t out of reach for a resident with limited savings or an attending just starting out.
Which Banks Allow Doctors to Buy Duplexes & Multi-Units?
Not every physician mortgage includes multi-unit eligibility. But some lenders do—usually for 1–2 unit owner-occupied properties (and in rare cases up to 4). Here are 7 lenders that allow multi-unit homes under their doctor loan programs:
Lender / Credit Union | Max Units Allowed | Down Payment Options | PMI | Special Notes | |
2 units | 0–10% depending on loan size | No | Flexible underwriting, strong Midwest presence | ||
Liberty Federal CU | 4 units | Flexible member-based tiers | No | Credit union benefits, physician loan program with multi-unit eligibility | |
Huntington Bank | 1–2 units | 0% up to $1M; 5–10% higher tiers | No | Midwest focus, physician-friendly | |
Truist | 2 units | 0–5% depending on loan cap | No | Available in South/East | |
U.S. Bank | 2 units | 0–10% depending on loan size | No | Contract-based qualifying | |
TD Bank | Up to 4 units | 0–10% depending on loan size | No | Rare 3–4 unit eligibility | |
2 (duplex) | Often 15% for duplex | No | More common in Southeast |
How a Doctor Can “House Hack” in Residency or Early Practice
Find a Physician Loan with Duplex Eligibility Work with a specialist who has owned rentals or years of experience with mulit-unit financing. This insight could help you discover additional strategies you have not thought of.
Run the Numbers Compare your projected rent against the mortgage. Even covering 60–75% of the payment can make residency life much easier. *Note you can not use future expected income to qualify.
Be Realistic About Being a Landlord From fixing a leaky sink to answering tenant calls, know what you’re signing up for—or budget for a property manager.
Plan for Resale or Refinancing Many doctors sell after training or refinance into a conventional loan later. Factor this into your timeline.
Benefits and Risks of House Hacking as a Doctor
Benefits
Offset or eliminate your housing cost
Build equity while training
Gain experience managing real estate
Create a launchpad for future investing
Risks
Maintenance headaches during busy call schedules
Needing to live next to your tenants
Possible higher down payment vs. single-family
Not every market has strong rental demand
Final Thoughts
For doctors, house hacking isn’t just a trendy real estate buzzword—it can be a practical strategy for reducing costs and building wealth during the most financially challenging years of your career. While not every physician mortgage allows it, several lenders support duplex and even multi-unit purchases if you’ll live in one unit. With the right loan program, you can turn your home into both shelter and an income-producing asset. 👉 If you’re considering a physician mortgage duplex strategy, connect with a verified doctor-loan specialist through DrHomeFinance.com. One of our experienced bankers; Darick Hensel with Wintrust Mortgage has experience in rentals and house hacking over the years. Reach out to him directly for more insight into this option. to explore your options and see if house hacking is the right move for your stage of training or practice.
