Financing

Should you consider getting a physician loan to buy your house?

Read our Physician Loan Q & A.

What are physician loans?

Mortgages tailored to physicians. Physicians are a group of people with a lifelong high earning potential but many start out with a heavy burden of student loans. Because of this, financial institutions and lenders have created loan products tailored to and offered exclusively to physicians. These are called physician loans or doctor loans.

What is the difference between a physician loan and a regular mortgage?
  • Physicians loans are usually high dollar loans, offered with very little or zero down payment and with no private mortgage insurance (PMI) required.
  • Most regular or conventional mortgages will require a down payment of 20%.
  • Some government loan programs like FHAs do not require a 20% down payment, but loan amounts have a cap, and borrowers pay a private mortgage insurance (PMI). Other government programs like VA loans are limited to veterans and current members of the Military.
  • Bottom line is, apart from physician loans, it is difficult to find loan products that combine a high dollar amount, minimal down payment and no private mortgage insurance, all in one package.
Do you think I should get a physician loan?

It depends on your individual situation. Give me a call. I will refer you to some very reputable lenders that my company works with. We always refer more than one so you can choose who gives you the best deal.

Here are two examples of physician loan programs offered by two different banks.

Bank A Bank B
Maximum Loan to Value Ratio (LTV) 100% up to $650,000

95% up to $850 for residents

95% up to $1,000,000 for practicing physicians

100% up to $750,000

95% up to $1 million

85% up to $1.5 million

80% up to $2 million

Maximum Loan Amount for Residents/Fellows/Interns $850,000 Applicable on case by case
Max. loan amount for practicing physicians $1,000,000 Case by Case
Private Mortgage Insurance (PMI) Not required Not Required
Minimum FICO score LTV>90% = 720       LTV<90% = 700
Loan Purpose Purchase Only. No Cash out Cash out not applicable on secondary residences
Escrow for taxes and Insurance Required
Occupancy Primary Residence Only Primary and Secondary Residences
Eligible Property types One-unit singe family detached/ Attached, warrantable condos and PUDs Case by Case