Complete Physician Loan Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A physician loan is a specialty mortgage for doctors, dentists, and other medical professionals that allows low or zero down payment without mortgage insurance, even with student debt. It recognizes a physician's strong future income.
This guide explains who qualifies, how lenders treat student loans, and the trade-offs in Florida. Mortgage Capital, NMLS# 1859012, helps Florida physicians buy with terms built for their careers.
Why physician loans exist
Doctors often finish training with high student debt and little savings, but strong, rising income. Physician loans are designed around that reality, offering low down payments without the usual penalties.
Lenders bet on the borrower's earning trajectory, which makes these loans available early in a medical career.
Who qualifies
Eligibility typically extends to MDs, DOs, dentists, and sometimes other advanced medical professionals. Many programs accept residents and fellows, not just attending physicians.
An employment contract or offer letter can serve as proof of income before the job even starts, which helps new physicians relocating to Florida.
Student loan treatment
Standard loans count student debt heavily in your debt-to-income ratio. Physician loans treat student loans more leniently, often using the income-driven repayment amount or excluding deferred loans.
This is the feature that lets debt-laden doctors qualify when a conventional loan would say no.
Down payment and insurance
Physician loans allow very low or zero down payment without private mortgage insurance, which most low-down loans require. That keeps the monthly payment lower despite the small down payment.
Loan amounts can reach into jumbo territory, fitting the higher-priced homes physicians often buy.
Trade-offs to consider
Physician loan rates can run slightly above conventional rates, and the easy qualifying can tempt buyers to stretch. Borrow within a comfortable payment, not just the maximum.
For a doctor with strong savings and modest debt, a conventional loan may cost less. We compare both for your situation.
Complete Physician Loan Guide: step by step
Frequently asked questions
What is a physician loan?
A specialty mortgage for doctors and other medical professionals offering low or zero down payment without mortgage insurance, even with student debt.
Who qualifies for a physician loan?
Typically MDs, DOs, dentists, and sometimes other advanced medical professionals, including residents and fellows.
How do physician loans treat student loans?
More leniently than standard loans, often using the income-driven payment or excluding deferred loans from your ratio.
Do physician loans require mortgage insurance?
No. They allow low or zero down without private mortgage insurance, which keeps the payment lower.
Can I use a job offer to qualify?
Yes. Many programs accept an employment contract or offer letter as proof of income before you start.
Are physician loan rates higher?
Sometimes slightly, compared to conventional. We compare both to see which costs less for you.
Can residents get a physician loan?
Yes. Many programs include residents and fellows, not just attending physicians.
Should I borrow the maximum approved?
No. Easy qualifying can tempt overborrowing. Choose a payment that fits comfortably with Florida insurance and taxes.