Physician Loan vs. Conventional Mortgage: How They Compare
Physician mortgage programs are not always the right choice for every physician. Understanding how they differ from conventional financing — and when each makes sense — is the starting point for building the right plan.
Video answer: physician mortgage versus conventional financing
Matt Siket | Mortgage Loan Originator | NMLS #442558
Key Differences at a Glance
Student loan treatment in DTI
May use reduced or excluded amount depending on repayment status
Typically uses actual payment or a percentage of balance
Down payment requirement
May not require a traditional down payment for eligible borrowers
Typically requires a down payment; amount varies by program
Mortgage insurance
May not require monthly mortgage insurance even without a down payment
Typically required when down payment is below 20%
Qualifying with a contract
Signed employment contract may be used before first paycheck
Typically requires established employment history and pay stubs
Eligible professions
Designed for MDs, DOs, dentists, and other doctoral-level healthcare professionals
Available to all qualifying borrowers regardless of profession
Loan limits
May offer higher loan limits than standard conforming limits
Subject to conforming loan limits unless using a jumbo program
Program features vary by lender and are subject to change. Eligibility requirements apply. This comparison is for educational purposes only and does not constitute a loan commitment or offer.
When Each Program Tends to Make Sense
Physician Program May Make Sense When...
- You are transitioning from residency or fellowship to an attending position
- You have substantial student loan debt that affects your debt-to-income ratio
- You do not have a large down payment accumulated
- You are relocating for a new position and need to close before your first paycheck
- You want to avoid monthly mortgage insurance
Conventional May Make Sense When...
- You have been in an attending position for several years with established income
- You have accumulated a significant down payment
- Your student loans are paid off or have minimal impact on your DTI
- The property type or purchase price does not fit physician program guidelines
- You prefer a program with a longer track record and more lender options
Let's Determine Which Program Fits Your Situation
The right program depends on your career stage, student loan structure, available funds, and timeline. A planning review will identify which approach makes the most sense for your specific situation.