June 26, 2025

How to Relocate Across States with a Physician Mortgage Loan

TLDR:

Relocating for a new medical job — whether for residency, fellowship, or an attending role — often means crossing state lines. Physician mortgage loans are uniquely designed to simplify this transition by allowing doctors to qualify with a signed employment contract, even before starting work. In contrast, most conventional loans require local employment and pay stubs — a challenge for relocating physicians. This guide explains how physician loans work when buying in a new state, what documents you’ll need, and how to avoid common mistakes.

Why Relocation Is So Common in Medicine

Physicians relocate often — whether it’s the jump from med school to residency, fellowship to attending, or a cross-country move for a better opportunity. In fact, the AAMC reports that over 60% of physicians relocate after graduation or training.

But relocating doesn’t just mean packing boxes. It can complicate homebuying — especially when you’re moving to a new state without an established income history or physical residence there.

This is where physician mortgage loans offer a critical advantage.

The Problem: Buying in a State Where You Don’t Yet Work

Conventional conforming loans, backed by Fannie Mae or Freddie Mac, have strict guidelines when it comes to relocation:

To qualify for a conventional loan when relocating, most lenders require:

Pay stubs from your new job showing income has already started
W-2s or a written verification of employment (VOE) with a confirmed start date
Physical presence or residency in the new state (you usually must occupy the home within 60 days of closing)
Proof that you’re licensed or eligible to work in the new state

This creates a problem for doctors who are:

Just graduating from training and haven’t started their new job
In a transition period between employers
Licensed but not yet working in the new state

Physician mortgage loans bypass this issue by allowing you to qualify with a signed employment or residency contract, often up to 90 days before your start date. That makes them ideal for relocating physicians.

Why Physician Loans Work for Relocation

Physician mortgage lenders understand that doctors don’t follow a traditional employment path. That’s why these loans are designed to be flexible.

Key features that support relocation:

Signed contract qualification (before paychecks begin)
0–5% down payment options with no PMI
Lenient treatment of student loan debt
Higher loan limits than standard conforming caps in many cases

Note: Conforming loans in 2025 have a limit of $766,550 in most areas. Physician loans often allow higher limits, especially in high-cost markets.

Pre-Approval Before You Move: What You’ll Need

Getting pre-approved before you move is not only possible — it’s smart. Here’s what physician loan lenders typically request:

Signed employment or residency contract (start date within 60–90 days)
Government-issued ID
Credit report (minimum 680–700+, depending on lender)
Proof of funds for down payment/reserves
Letter of completion or verification of graduation (for residents/fellows)

You do not need to be licensed in the new state to start the loan process — but most lenders will require you to be fully licensed by the time you close.

Tip: Don’t Wait Until You Arrive

A common mistake physicians make is waiting to tour homes in person after they arrive. But in many markets, homes move fast — and so should you.

Instead:

Connect early with a real estate agent in your new city
Use virtual tours and remote signing tools
Work with a lender who understands remote closings and physician timelines

Physician Relocation Scenarios: How Loans Apply

Moving for Residency
Use your residency match letter or signed offer to qualify, even before your first shift.

Starting a New Attending Role
Even if you’re changing states, your contracted income can be used to qualify before your new job begins.

Job Change with a Short Gap
Physician mortgage lenders may allow a 30–60 day employment gap between roles and still approve the loan if the next job is under contract.

Physician Loans Across States: What Changes?

While physician loan programs are available in most states, there are some differences:

Loan limits may vary depending on regional housing markets
Property types (condos, multi-units, etc.) may have unique requirements
Underwriting guidelines can shift slightly depending on the lender

Examples:

Be sure to confirm state-specific details with your lender before applying.

Common Mistakes to Avoid When Relocating

Waiting too long to apply — start 60–90 days before your job starts
Using a generalist lender who doesn’t understand physician income structures
Skipping the inspection — don’t cut corners in a new market
Forgetting to budget for relocation costs — movers, licensing fees, utilities, etc.

What If You’re Unsure About the Area?

Relocating to a state you’ve never lived in? Consider these strategies:

Talk to colleagues or hospital staff about where they live
Prioritize commute time, safety, and amenities
Rent temporarily if you’re unsure — it’s better than rushing into a bad location

Need help deciding? Read: Should You Buy or Rent This Summer as a Resident Physician?

External Insight: Remote Homebuying Is Now the Norm

According to the National Association of REALTORS® 2024 Generational Trends Report, nearly 1 in 4 buyers under 40 purchased their home without touring in person.

For relocating physicians, that’s great news. Most physician mortgage lenders and real estate partners now support:

Video walkthroughs
Digital document collection and e-signatures
Remote notarizations and closings

Final Thoughts: Relocation Doesn’t Have to Delay Homeownership

Physicians move — a lot. And whether you’re headed to your first residency or your third attending role, a physician mortgage loan can help you buy with confidence before you even unpack.

Unlike conventional loans, physician mortgages:

Accept employment contracts before start dates
Don’t require local income history
Allow for zero or low down payments with no PMI

Just like in medicine, the key is preparation. Start early, partner with experts who understand your journey, and take advantage of tools that make relocation easier.

Ready to explore your physician mortgage options?

Use our Doctor Mortgage Calculator or connect with a verified lender through DrHomeFinance.com to start your home search — no matter where you’re headed next.

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