Physician loans are portfolio products that many banks and credit unions offer to doctors, dentists and some other medical professionals. They exist because new physicians often have high income potential, high student debt and little savings — a profile that standard guidelines handle poorly.
Common features
- Low or no down payment — often up to 100% financing on loan amounts up to a set limit.
- No private mortgage insurance, even with little down.
- Student-loan flexibility — deferred or income-driven repayment loans may be excluded or counted at the actual payment.
- Contract income — close before your start date with a signed employment contract.
Trade-offs
Rates can be slightly higher than a conventional loan, and most programs restrict occupancy to a primary residence. If you have 20% down, a conventional loan often wins. If you have 5–10% down, compare a physician loan (no PMI) with a conventional loan (PMI that eventually cancels) over the years you expect to keep it — our loan comparison calculator does exactly that.