Physician Mortgage Loan 2026 — 0% Down, No PMI for Medical Professionals

A physician mortgage loan (also called a doctor loan) is a specialized mortgage product designed for medical professionals. Key features: 0% to 10% down payment with no PMI (private mortgage insurance), student loan debt treated favorably in DTI calculations (often excluded or counted at income-based repayment amount), future employment contracts accepted at closing (perfect for residents starting a new job), and higher loan amounts ($1.5M–$2.5M) without jumbo pricing. These programs recognize that physicians have high debt loads during training but exceptional earnings potential.

No — this is the primary advantage of physician loans. Most physician mortgage programs offer 0% down on loans up to $750K–$1M, with 5–10% down on amounts up to $1.5M–$2M. Critically, there is NO private mortgage insurance (PMI) regardless of down payment. On a $800K physician loan with 0% down, this saves approximately $400–$667/month vs a conventional loan with PMI.

This is the most impactful benefit for most borrowers. Conventional loans count your full required monthly student loan payment in the debt-to-income ratio. Physician loans handle this differently: many exclude student debt entirely, others use the income-based repayment (IBR) amount (often $0 during residency), and some use 0.5–1.0% of the loan balance. Example: $300K student loan balance has a standard payment of ~$3,000/month. With IBR of $200/month, a physician loan might count only $200 in DTI vs $3,000 — a $2,800/month DTI reduction that dramatically increases buying power.

Yes — most physician loan programs specifically target residents and fellows. Requirements: medical school diploma or residency match letter, signed employment contract for post-residency position (within 60–90 days), and medical license (or proof of pending licensure). Many programs allow 0% down during residency, recognizing that residents have minimal savings but a defined high-income career ahead. This is one of the most valuable use cases: buying a home during residency with 0% down and no PMI.

Physician loans are excellent products but have tradeoffs: (1) Interest rates run 0.125–0.375% above comparable conventional rates — on a $1M loan, this is ~$1,500–$3,750/year extra. (2) Minimum credit score 680–700+ is higher than FHA's 580. (3) Not available at most large banks — you must find participating institutions. (4) Variable rates are more common in physician programs. (5) Limited competition means less rate negotiation. (6) Not available to all medical professionals — check your specific designation.

If you have 20% down available, conventional is often cheaper long-term (lower rate, no premium). But physician loans make sense when: (1) you don't have 20% saved yet — preserving capital for investing often beats building equity slowly, (2) your student loans would cause a conventional DTI denial, (3) you're starting a new position and need a future-employment-date exception, or (4) your loan amount exceeds conventional limits. Many high-income physicians prefer to keep capital liquid and invest it vs tying up $200K+ in a down payment.