As a physician looking to buy a home, you have mortgage options most borrowers don't. The decision usually comes down to a physician loan vs conventional loan — a comparison worth running carefully because your financial situation (student loan debt, down payment, training stage) changes which program wins.
What Makes a Physician Mortgage Different?
The physician mortgage loans program is designed specifically for medical professionals — MDs, DOs, DDSs, DMDs, and related credentials. The key differences from conventional loan options are substantial.
You can put 0% down on a home purchase — no down payment at all. Residents and fellows are qualified on their signed attending contract (their employment contract), not their current training salary. And there's no private mortgage insurance pmi requirement, which on a $600K loan saves most buyers $350–$500/month.
Student Loan Debt Treatment
This is the biggest structural advantage of the physician loan vs conventional loan comparison. Conventional loans count your student loan payment — or 0.5–1% of the total balance — against your debt to income dti ratio. The physician mortgage loans program excludes it entirely or uses the reduced IBR amount.
With $300K in student loan debt, that typical IBR payment could add $2,500–$3,000/month to your DTI under a conventional underwriter's math. That single adjustment is the difference between qualifying for a $675K home and being stuck under $325K. Most graduating residents can't qualify for a physician mortgage-sized purchase through a conventional lender no matter how strong their income history.
When Conventional Makes Sense
If you have a full 20% down payment saved, minimal student loan debt, and a clean income history, a conventional loan may offer a lower interest rate and lower long-term cost. If you put down less than 20, conventional still works but you'll be paying PMI until you reach 20% equity.
Conventional loans also work for investment properties — physician mortgage loans are restricted to primary residences only. If you want to buy a home to rent out, look at DSCR loans instead. For most new attendings, though, the right first move is owner-occupied — and that's where the physician program fits.
When the Physician Mortgage Wins
If you're a resident, fellow, or early-career attending with student loan debt and less than 20% saved, the physician mortgage almost always wins. The 0% down and no PMI let you buy a home now instead of waiting three to five years to save a down payment — years during which home prices and interest rates can shift against you.
The loan amounts available under most physician programs favor the physician loan too: most programs go to $1M at 0% down and $2M+ with 5–10% down, well above the 2026 conforming conventional loan limit of $766,550.
The Interest Rate Comparison
Physician mortgage interest rates are typically 0.125–0.75% higher than conventional rates at the same credit profile. Mortgage lenders price the physician product as a lower-risk flavor of non-conforming, which explains the modest premium.
But when you factor in the PMI savings and the opportunity cost of tying up $100K+ in a down payment, the physician mortgage often wins on total cost over the first 7–10 years — which is how long most physicians keep their first home anyway.
How to Qualify for a Physician Mortgage
Eligibility for this loan program is based on your medical credentials, not your current income. MDs, DOs, DDSs, DMDs, DPMs, ODs, PharmDs, and some NP/PA programs qualify for a physician mortgage. Residents, fellows, and applicants within 90 days of starting residency all qualify — loan options are broadly available across most major physician lenders.
Credit score minimums are usually 700 (some programs accept 680+). The core documentation: signed employment contract or training agreement, evidence of medical credential, and a basic credit and asset review. You don't need to put down less than 20 to benefit from this program — but most borrowers do, because the point is to preserve cash and skip PMI.
Run Your Numbers
Use our free Physician Mortgage Calculator to see your qualifying amount, PMI savings, and DTI comparison side by side.
For the full breakdown with additional scenarios, read our longer Physician Mortgage vs Conventional full guide or meet the loan officer running your file at the About Zack page.
Or call Zack at (951) 850-6036 to discuss your specific financial situation in detail.