Doctor Loans: Special Mortgage Options for Medical Doctors

1. Minimal or No Down Payment Required

Unlike traditional mortgages that typically require 20% down to avoid private mortgage insurance (PMI), doctor loans often allow physicians to purchase homes with as little as 0-5% down. This is particularly beneficial for new physicians who haven't had time to save substantial down payments.

2. No Private Mortgage Insurance (PMI)

Despite the low down payment, doctor loans typically don't require PMI, which can save you hundreds of dollars each month. This is a significant advantage over conventional mortgages, where PMI is generally required until you reach 20% equity in your home.

3. Flexible Debt-to-Income Ratio Considerations

Lenders offering doctor loans understand the substantial student loan debt many physicians carry. They often exclude deferred student loans from debt-to-income calculations or use more favorable calculation methods, allowing you to qualify for a larger loan amount.

4. Employment Flexibility

Many doctor loan programs will approve financing based on an employment contract rather than requiring a history of employment. This means you can secure housing before you even start your new position, which is particularly helpful when relocating for a residency or fellowship.

5. Higher Loan Limits

Doctor loans typically offer higher loan amounts than conventional mortgages, allowing physicians to purchase more expensive homes that might otherwise require jumbo loans with stricter qualifying criteria.

Timing Considerations for Doctor Loans

Doctor loans are particularly valuable at specific points in your medical career:

• During Residency or Fellowship: When you're earning less but need to relocate for training
• Upon Completion of Training: When you're starting your practice but haven't established a financial history
• Early Career: When your income is rising but you're still managing significant student loan debt

Potential Drawbacks to Consider

While doctor loans offer many advantages, they're not without potential downsides:

• Higher Interest Rates: Doctor loans sometimes come with slightly higher interest rates compared to conventional mortgages with 20% down.
• Limited Lender Options: Fewer lenders offer these specialized products, which may limit your ability to shop around.
• Property Restrictions: Some doctor loan programs have limitations on the types of properties you can purchase.

Timing Considerations for Doctor Loans

Doctor loans are particularly valuable at specific points in your medical career:

• During Residency or Fellowship: When you're earning less but need to relocate for training
• Upon Completion of Training: When you're starting your practice but haven't established a financial history
• Early Career: When your income is rising but you're still managing significant student loan debt

How to Apply for a Doctor Loan as Medical Doctor

1. Research Options: Look for mortgage originators experienced with medical professional mortgage programs. Shop Doctor Loans is the right place to do so.
2. Gather Documentation: Prepare your medical license, employment contract, proof of education, and financial statements.
3. Get Pre-Approved: This will give you a clear idea of your budget before you start house hunting.
4. Compare Offers: Even within the doctor loan category, terms can vary significantly between lenders.
5. Work with an Experienced Originator: A mortgage professional experienced with physician mortgages can help navigate the options and find the best fit for your situation. Our doctor loan mortgage professionals will make that easy for you.

Is a Doctor Loan Right for You?

While doctor loans offer attractive features for medical professionals, they're not universally the best choice. Consider your specific financial situation, including:

• How long you plan to stay in the home
• Your cash reserves and ability to make a down payment
• Your tolerance for potentially higher interest rates
• Your career stage and projected income growth