The medical professional home loan (aka physician loan or doctor loan) is built to help you qualify for a mortgage with 100% financing. That’s a zero-down payment, even with heavy student loan debt. You can even qualify before you’ve finished your residency once you have an employment offer pending.
Physicians, medical professionals, and other healthcare workers often face unique challenges when applying for a home loan. For instance, many medical residents carry heavy student debt and a high debt-to-income ratio that makes it difficult to qualify for a conventional mortgage. Never mind coming up with a 20% down payment.
However, mortgage lenders know that medical professionals are less likely to default on a mortgage and will likely increase their earning power. As a result, special home loan programs are available to help medical professionals qualify for a mortgage.
What is a Doctor Loan?
The medical professional home loan has a few common names: physician loan, doctor loan, physician mortgage, or even a healthcare heroes home loan. Mortgage lenders offer similar programs under the same name with slight variations, so it’s a wise decision to work with an experienced mortgage broker. A qualified mortgage broker can help you secure the best mortgage based on your unique financial profile.
In short, a medical professional home loan allows eligible borrowers to qualify for a mortgage with up to 100% financing at a competitive mortgage rate.
The doctor loan program addresses three main obstacles to help you qualify for a mortgage:
- 100% financing (no down payment required)
- Student loan debt is excluded from the debt-to-income ratio
- Proof of employment can include a future offer of employment
What are the benefits of a medical professional home loan?
- Up to 100% Financing
As an eligible medical professional, you can qualify for a mortgage with a zero down payment and still get a competitive mortgage rate.
- Student Loan Debt is Excluded
Medical professionals often carry heavy student debt after completing medical school and finishing a residency. A medical professional home loan excludes student loan debt from calculations to help you qualify.
- Higher DTI Allowed
A high debt-to-income ratio isn’t a deal-breaker. Mortgage lenders realize that a high debt-to-income ratio is common at the beginning of a medical career, so the requirements are much more flexible.
- Employment Offer Counts
Proof of employment is no longer a hurdle. An offer of employment that begins within 90 days of closing will qualify.
- No PMI Required
Even with zero down payment, the physician loan program doesn’t require private mortgage insurance.
Who is eligible for the medical professional loan program?
- Medical Resident
- Medical Doctor (MD)
- Doctor of Dental Medicine (DMD)
- Doctor of Ophthalmology (MD)
- Doctor of Osteopathy (DO)
- Chiropractor (DC)**
- Medical Fellow
- Doctor of Dental Surgery (DDS)
- Doctor of Optometry (OD)
- Doctor of Podiatric Medicine (DPM)
- Pharmacist (RPH)*
- Doctor of Veterinarian Medicine (DVM)
Note: Chiropractors are only eligible for up to 97% LTV, and pharmacists must have a PharmD to get 100% financing.
If you’re a medical professional, 100% financing on a home loan could be the right move. A medical professional home loan can help you get a mortgage at a competitive mortgage rate with up to 100% financing. Even with heavy student loan debt, you can qualify before you’ve finished your residency once you have an offer within 90 days of closing.
We can help you figure out the best way to save money based on your career timeline and homeownership goals. Competitive mortgage rates with up to 100% financing are available, and we can help you get the right mortgage. We partner with mortgage lenders across California, Oregon, Washington, and Colorado, and we’d love to help you get started.