Buying a Home with a Gap Between Jobs: What Physicians Need to Know

TLDR:
Physicians frequently experience gaps between jobs — especially when transitioning from residency to fellowship, or changing hospitals or health systems. The good news is that physician mortgage loans are built with these transitions in mind. You can still qualify for a mortgage using your signed offer letter, even if you haven’t started your new job yet. This guide walks through what you need to know if you’re trying to buy a home during a professional gap.

Why Gaps Between Jobs Are Normal for Physicians

Unlike traditional careers with two to four week transitions, physicians often face longer employment gaps due to:

• Board exam scheduling
  
• Relocation timelines
  
• Hospital credentialing
  
• Visa or licensing processes
  
• Personal sabbaticals or family leave 

You may find yourself in a 30–90 day window where you’re not actively employed — but still planning to move and buy a home. Most traditional lenders won’t approve you in this scenario.

Fortunately, physician mortgage lenders work differently.

The Solution: Qualify Based on Your Employment Contract

One of the most valuable features of physician mortgage loans is the ability to qualify using a signed offer letter, not pay stubs or W-2s.

This means:

• You can buy a home up to 90 days before your start date
  
• Your loan is based on future income, not current employment
  
• You don’t need to prove continuous income with tax returns 

This flexibility is exactly why these programs exist. You can explore more details in Secure a Home Loan Before Your Residency Starts, which also applies to attendings and fellows.

What You’ll Need to Qualify During a Job Gap

To get approved while not actively working, you’ll typically need:

• A signed employment agreement with: 
  • Start date within 90 days
    
  • Salary clearly listed
    
  • Employer name and job title 
• Strong credit (ideally 700+)
  
• Proof of identity
  
• Bank statements for closing cost and reserves
  
• Optional: letter of explanation for the employment gap 

Your lender may also ask for a letter of completion if you’re finishing training and moving into a new role.

Common Physician Scenarios Involving Job Gaps

🎯 From Residency to Fellowship

You’re relocating, but your fellowship doesn’t start for two more months. You need to move now to get settled.
→ Your signed fellowship agreement can be used for approval.

🎯 From Fellowship to Attending

You’ve wrapped up training and are taking a short break before your first job.
→ Your attending contract qualifies you — no income needed during the gap.

🎯 Switching Hospitals or Health Systems

You’re in transition and need to close on a home before your next role begins.
→ Use your new contract to qualify for a physician mortgage loan.

All these scenarios highlight the importance of contract-based lending. Physician mortgage programs are designed for these transitions. Learn more in Doctor Mortgage Lending Guide: The Top Things to Understand

Addressing Student Loan Debt During a Gap

Even if you’re not earning, physician lenders often use:

• Your income-driven repayment (IDR) amounts
  
• A lower percentage of your total debt
  
• Or exclude student loans if they’re in deferment 

This gives you a better debt-to-income (DTI) profile during a transition. Just be sure your loan officer understands how to document student loan treatment properly.

Need a breakdown of how DTI works? Read Mortgage Loans – How DTI (Debt-to-Income) Affects How Much House You Can Buy

Can You Still Get a Low Down Payment with a Gap?

Yes. Physician mortgage loans still offer:

• 0–5% down payment options 
• No PMI, even with minimal down 
• Loan limits exceeding conventional caps (especially helpful in high-cost areas) 

You don’t need extra reserves just because of the employment gap — as long as you meet program criteria and your new job is secure.

How to Strengthen Your Application

Even though physician lenders are flexible, you can make approval easier by:

• Applying early (at least 60 days before your planned move)
  
• Providing a full, signed contract with salary, job title, and start date
  
• Showing an active license or in-process application (depending on state)
  
• Working with a lender licensed in both your old and new states 

What Happens If You Have a Longer Gap?

Most physician mortgage programs require your job to start within 90 days of closing. If your gap is longer, you may:

• Need to rent temporarily until your start date is closer 
• Ask your employer to update your offer letter with an earlier effective date (even if onboarding is delayed) 
• Work with a lender who allows for exceptions on a case-by-case basis 

If you need time to evaluate the decision to rent or buy, consider the pros and cons in Should You Buy or Rent This Summer as a Resident Physician?

What Happens If You Change Jobs After Closing?

If you use a contract to qualify, you’re expected to start that job and earn the listed income. Changing roles immediately after closing could violate the loan terms — and could trigger early payment penalties or loan recalculations.

If your job offer falls through or your plans change, contact your lender immediately. Transparency is critical.

External Insight: Employment Gaps Are More Common Than Ever

A 2024 LinkedIn survey showed that approximately 70% of professionals have taken a career break at some point, including transitions between roles. In medicine, these gaps are often planned and necessary — but they don’t have to block financial progress like homeownership.

Physician loans are among the few products on the market that truly accommodate professional transitions — and allow doctors to move forward without delay.

Source: LinkedIn Career Break Study – 2024

Final Tips for Physicians Buying During a Job Gap

✅ Get pre-approved as soon as your contract is signed
✅ Make sure your contract includes clear compensation and start date
✅ Partner with a lender familiar with physician transitions
✅ Prepare for closing costs, but don’t stress about having recent income
✅ Have a backup housing plan in case your timeline shifts
✅ Don’t change employers before closing unless absolutely necessary

Final Thoughts: Your Transition Doesn’t Have to Delay Your Homeownership

Job transitions are a normal part of every physician’s journey — and they shouldn’t stop you from buying a home. With a physician mortgage loan, you can move forward even if you’re between roles.

The key is planning ahead, choosing the right lender, and using your signed contract to qualify. Whether you’re taking a break before your fellowship or starting your first attending role, you don’t need to wait until your first paycheck to start building equity.

Curious if your gap affects your home loan eligibility?
Let’s talk. Reach out to our team today to get matched with a lender who understands physician transitions — and can help you close before your start date.

Explore your options with a physician mortgage expert →
Brought to you by Dr. Home Finance — home loans built for physicians in transition.