What is a physician mortgage loan?

A physician mortgage loan, often called a doctor loan, is a home loan that some banks and mortgage lenders offer to physicians and, in many programs, to dentists and other doctorate-level clinicians.

It typically departs from a standard conventional mortgage in three ways: little or no down payment, no private mortgage insurance (PMI) and more lenient treatment of student loans when the lender calculates the borrower's debt-to-income (DTI) ratio, according to Bankrate and NerdWallet.

The Consumer Financial Protection Bureau (CFPB) lists "newly graduated doctors" among the borrowers that niche non-conforming loan programs are designed for. No federal rule sets the terms of a physician loan, so eligibility, down payment, loan size, interest rate and the handling of student debt vary from lender to lender.

How is a physician mortgage loan different from a conventional mortgage?

Most conventional mortgages are conforming loans, which follow rules set by Fannie Mae and Freddie Mac and must stay under a loan limit the Federal Housing Finance Agency (FHFA) sets each year. For 2026, the FHFA limit is $832,750 for a one-unit home in most of the country and as much as $1,249,125 in high-cost areas.

Fannie Mae's and Freddie Mac's congressional charters require credit enhancement, most often mortgage insurance, on the loans they buy when the balance is more than 80% of the property's value. Physician loans that skip mortgage insurance on a low down payment sit outside that system as non-conforming loans written to each lender's own guidelines.

The CFPB describes non-conforming loans as "less standardized," with eligibility, pricing and features that "can vary widely by lender."

How much is the down payment on a physician loan?

Many physician loan programs require no down payment, and loan amounts often reach $1 million or more, with higher limits for borrowers who do put money down, Bankrate reports. Some programs set lower maximum loan amounts for interns, residents and fellows than for attending physicians, according to NerdWallet.

On a conventional loan, a down payment of less than 20% of the purchase price usually means paying for PMI.

Bankrate notes that low or no down payments raise the risk of owing more than the home is worth if values fall. A low down payment doesn't cover closing costs either; the Loan Estimate a lender provides lists the cash needed at closing on its own line.

What does it mean that physician loans don't require PMI?

PMI protects the lender, not the borrower, if the borrower stops making payments, and a borrower who pays for it can still lose the home to foreclosure, the CFPB notes. It is usually required on a conventional loan with less than 20% down and is most often paid as a monthly premium added to the mortgage payment.

Freddie Mac estimates PMI runs $30 to $70 a month for every $100,000 borrowed, depending on the loan-to-value ratio and the borrower's credit score. On a $500,000 loan, that works out to roughly $150 to $350 a month.

Physician loans generally waive PMI even when the down payment is under 20%. The CFPB notes that low-down-payment conventional loans without PMI usually carry higher interest rates, and that whether the trade pays off depends on how long the borrower keeps the home. The agency suggests asking a loan officer to calculate total costs over several realistic time frames.

Under the federal Homeowners Protection Act, a borrower can ask the servicer in writing to cancel PMI once the loan balance is scheduled to reach 80% of the home's original value.

The servicer must end it automatically when the balance is scheduled to reach 78%, provided the borrower is current, and must end it at the midpoint of the amortization schedule, such as year 15 of a 30-year loan. Those rules apply to single-family principal residences on loans that closed on or after July 29, 1999. Federal Housing Administration (FHA) loans and loans backed by the Department of Veterans Affairs follow different rules.

How are student loans counted on a physician mortgage?

The DTI ratio compares a borrower's total monthly debt payments with gross monthly income, and limits vary by loan product and lender. Student loan payments count toward that monthly debt.

Of the medical school class of 2025, 70% graduated with education debt, with a median balance of $215,000, according to the Association of American Medical Colleges.

Fannie Mae uses the payment shown on the credit report. When the report shows no payment or $0, the lender can qualify the borrower at $0 with documentation that the payment on an income-driven repayment plan really is $0; for a loan in deferment or forbearance, the lender uses 1% of the outstanding balance or a fully amortizing payment based on the loan's terms, under Selling Guide section B3-6-05.

Freddie Mac counts 0.5% of the outstanding balance when the credit report shows a $0 payment, unless other documentation supports a payment greater than zero.

The FHA uses the reported or documented payment when it is above zero and 0.5% of the outstanding balance when the reported payment is zero.

Consider a physician with $200,000 in deferred student loans and a signed contract paying $20,000 a month in gross income. Fannie Mae's 1% calculation counts $2,000 a month, which adds 10 percentage points to the DTI ratio. The 0.5% calculation used by Freddie Mac and the FHA counts $1,000, or 5 points.

Many physician loan programs don't count student debt in the DTI ratio, and most allow ratios up to 50%, Bankrate reports; some programs exclude medical school debt that is deferred or in forbearance for a set period, according to NerdWallet. The same student loan balance can therefore produce different DTI ratios at different lenders.

Federal repayment options changed on July 1, 2026, when the Repayment Assistance Plan (RAP) opened for enrollment. RAP payments run from 1% to 10% of income and can be as low as $10 a month, according to the U.S. Department of Education, so a borrower on RAP would document a payment of at least $10 rather than $0. Plan details and payment records are available through Federal Student Aid.

Can you get a physician loan before starting a new job?

Many physician loan programs accept a signed employment contract in place of a work history, and borrowers can often close before their first day if they start within a few months, according to Bankrate. Some programs allow closing as many as 90 days before a new job begins, NerdWallet reports.

Fannie Mae allows lenders to count income from a non-contingent job offer or contract when the borrower is buying a one-unit primary residence and the job starts no earlier than 30 days before and no later than 90 days after the date the loan note is signed. The lender must also document extra reserves to cover payments until the job begins.

Under the CFPB's ability-to-repay rule, most lenders must make a reasonable, good-faith determination that a borrower can repay the loan, weighing income, assets, employment, credit history and monthly expenses. A physician loan is subject to the same requirement.

Who qualifies for a physician mortgage loan?

Physician loan programs are open to physicians with M.D. or D.O. degrees, and some extend to podiatrists, dentists and orthodontists, according to NerdWallet.

Some lenders also offer programs for veterinarians, physician assistants, nurse practitioners and physical or occupational therapists, Bankrate reports, and residents and fellows can qualify.

Lenders often look for a credit score of 700 or higher, according to Bankrate, which also reports that the loans are generally limited to primary residences and that some lenders exclude condos or lend only on detached single-family homes.

Do physician loans have higher interest rates?

Doctors don't get better rates because of their profession, according to Bankrate, which reports that physician loans are often adjustable-rate mortgages (ARMs) rather than fixed-rate loans.

A borrower who can put 20% down avoids PMI anyway and will typically find lower rates on a conventional or jumbo loan, NerdWallet notes.

With an ARM, the interest rate and monthly payment may start low and change over the life of the loan. The CFPB's adjustable-rate mortgage handbook explains how the payment on an ARM can change and how to read the disclosures that come with one.

How can physicians compare a physician loan with other mortgage options?

A lender must provide a Loan Estimate within three business days of receiving a mortgage application. The CFPB recommends requesting Loan Estimates from several lenders and comparing origination charges, the annual percentage rate and the total interest percentage across them.

For non-conforming loans, the agency advises consulting multiple lenders, asking whether a conforming or FHA loan is also an option and never making a final decision before the official Loan Estimates are in hand.

Federal resources for checking the numbers on a specific offer:

• The CFPB's Buying a House guide covers each stage of a purchase, from loan options to closing.
• The CFPB's Loan Estimate explainer walks through each section of the form.
• The CFPB's PMI cancellation rules show when mortgage insurance on a conventional loan must end.
• The FHFA's 2026 conforming loan limits link to a county-by-county list and map.
• Federal Student Aid lists federal repayment plans and current payment amounts.
• The CFPB's complaint portal accepts complaints about mortgage lenders and servicers.

Frequently asked questions about physician mortgage loans

Can residents get a physician mortgage loan?

Yes. Many programs accept residents and fellows, though some set lower maximum loan amounts for trainees than for attending physicians, according to NerdWallet.

Do physician mortgage loans require private mortgage insurance?

Generally no. Physician loans typically waive PMI even with less than 20% down, while a conventional loan with less than 20% down usually requires it, per the CFPB.

Can a physician loan be used for a second home or rental property?

Generally no. Physician loans are typically limited to a primary residence, though some lenders allow a two- to four-unit property when the borrower lives in one of the units, NerdWallet reports.

Do physician loans count student loans in the debt-to-income ratio?

It depends on the lender. Many physician programs exclude student loans or count deferred loans differently, while conforming and FHA loans count 0.5% or 1% of the balance when the credit report shows no payment, under Fannie Mae, Freddie Mac and FHA rules.

Is a physician mortgage loan the same as a jumbo loan?

No. A jumbo loan is any loan above the conforming loan limit, which is $832,750 for a one-unit home in most counties in 2026. A physician loan can fall below or above that amount.

Where can physicians compare mortgage offers?

The CFPB's Buying a House tools explain how to read and compare Loan Estimates from multiple lenders.