June 5, 2025

Moving This Summer? What Physicians Need to Know Before Buying a Home

TLDR:
Summer is the busiest time of year for physician relocations — especially for those starting residency, fellowship, or new attending positions. While many doctors assume they have to rent before they earn a paycheck, physician mortgage loans allow you to buy a home before your new job begins. This guide explains how you can use an employment contract to qualify, why physician loans offer unmatched advantages, and how to avoid common mistakes during a summer move.

Why Summer Is Peak Moving Season for Physicians

For most of the country, summer is vacation season. But for physicians, summer is transition season — particularly for newly matched residents and fellows, or practicing physicians changing roles.

July 1 is the traditional start date for most academic and hospital positions, which means June is go-time for moving, onboarding, and securing housing. And with the housing market at its most competitive during this same period, getting the timing right can be tough.

This is where physician mortgage loans shine — they allow you to buy a home before you begin work, with fewer restrictions than conventional mortgages.

The Rent vs. Buy Dilemma During a Summer Relocation

Most doctors assume they’ll need to rent for a year or two before considering homeownership. But that assumption can cost you — in flexibility, equity, and long-term value.

Let’s break down the trade-offs:

Renting Pros:

Fast move-in
Short-term commitment
May be convenient if uncertain about long-term plans

Renting Cons:

High rent prices in competitive summer markets
No equity or tax benefits
Uncertainty in renewals or rent increases
Potential double-move when you’re ready to buy

Buying Pros:

Monthly payments that may be lower than rent
Start building equity immediately
Customize your space
Lock in fixed rates for long-term savings

Physician Mortgage Loans: Built for Transitional Buyers

Physician mortgage loans are tailor-made for doctors in transition. These loans were created to remove the barriers that new and early-career physicians face when trying to buy a home — particularly during job changes and relocations.

Key Advantages:

0–5% down payment options
No private mortgage insurance (PMI)
Flexible debt-to-income (DTI) ratio treatment
Approval based on an employment contract

That last point is critical. Instead of waiting for pay stubs, physician loans allow you to close on a home using your signed offer letter or residency agreement.

What You Need to Apply Before Your First Day of Work

To qualify for a physician mortgage loan before your job begins, you’ll typically need:

A signed employment contract with a start date within 90 days
Proof of medical degree or graduation
Government-issued ID
Recent bank statements (for down payment or reserves)
Credit score (ideally 700+, though some lenders accept lower for smaller loan amounts)

If you’re unsure what you can afford, use our Doctor Mortgage Calculator to estimate monthly payments and loan limits.

How Student Loans Are Handled Differently

Most doctors carry six figures in student debt — and traditional lenders may count all of it against your debt-to-income ratio. That’s where physician loans offer a huge edge.

Instead of factoring in your full monthly student loan payment, physician lenders may:

Use your Income-Based Repayment (IBR) amount
Use a percentage of your balance, often 0.5%-1.%
Exclude deferred loans from calculations

This gives you more room in your DTI and a better chance at qualifying — even with substantial education debt.

Get the full picture in Mortgage Loans – How DTI (Debt-to-Income) Affects How Much House You Can Buy

Timing Is Everything: When to Start the Process

If your job starts in July, we recommend starting your pre-approval in early June. Physician loan approvals can move quickly — sometimes in under two weeks — but you’ll want extra time to:

Tour homes (virtually or in person)
Submit offers in competitive markets
Handle closing paperwork
Plan your actual move

Summer Homebuying Tips for Physicians

1. Work with a Physician-Savvy Lender

Choose a lender who regularly handles physician loans and understands your contract-based timeline. Not all lenders know how to underwrite offers without pay stubs.

Read How to Compare a Banker Who Understands Physician Mortgages vs. One Who Doesn’t

2. Use Your Employment Contract Strategically

Make sure your offer letter includes:

A clear start date (within 90 days)
Your base salary
Signature of the HR department or hiring manager

If any details are missing, contact your new employer early to request updates.

3. Be Prepared to Act Fast

Summer is peak season — both for buyers and renters. Desirable homes near hospitals tend to go quickly. To compete:

Get pre-approved before touring homes
Set your budget and desired location in advance
Be ready to make strong offers

4. Compare Loan Programs in Your New State

Programs and limits vary depending on where you’re moving. For example:

A Quick Look at the Summer 2024 Market

According to Realtor.com’s Summer Housing Market Forecast, buyers this season can expect:

Gradual increases in inventory
Less aggressive bidding wars in some metro areas
Continued price strength in medical hubs

If you’re moving to a city with a major hospital system, expect homes near work to remain competitive — especially for those looking to avoid long commutes.

Pitfalls to Avoid

❌ Waiting too long to apply
Even if you’re weeks from starting work, you can qualify early with a signed contract.

❌ Assuming all loans treat student debt the same
Physician loans use more flexible DTI formulas — make sure you’re applying for the right product.

❌ Choosing a general lender
Work with a loan officer who specializes in physician home loans and understands your professional timeline.

Final Thoughts: Move Smart, Not Stressed

Relocating as a physician is exciting — but without the right support, it can be overwhelming. Physician mortgage loans are designed to simplify this process, letting you close before Day One, avoid unnecessary rent, and invest in a home that supports your next chapter.

Ready to buy before your new role begins?
Try our Doctor Mortgage Calculator to explore your options, or connect with a physician loan specialist to get started today.

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Moving This Summer? What Physicians Need to Know Before Buying a Home

Why Summer Is Peak Moving Season for Physicians