Physician loans.

The problem it solves

Standard underwriting reads two years of tax returns and a recent pay stub. A physician finishing training has neither. What they have instead is enormous student debt, almost no savings, and a signed contract for an income that has not started arriving.

Measured the conventional way, that file looks weak. Measured against what actually happens next, it is one of the safest profiles in lending. Physician programs exist because the conventional measurement is wrong about this particular borrower, and lenders have decades of performance data proving it.

Who qualifies

Eligibility runs off the degree, not the job title. The credentials these programs recognize are:

• MD — Doctor of Medicine
• DO — Doctor of Osteopathic Medicine
• DDS — Doctor of Dental Surgery
• DMD — Doctor of Dental Medicine
• DVM — Doctor of Veterinary Medicine

Where you are in your career

All three stages are eligible, and the documentation shifts as you move through them.

What is actually different

Four things separate a physician loan from the conventional loan sitting next to it.

• The contract counts as income. A signed, non-contingent employment agreement with documented compensation can be used in place of pay stubs from a job you have not started. This is the whole point of the product.
• Student debt is handled on its own terms. Medical school debt is treated under the program’s guidelines rather than the blunt conventional calculation, which is what disqualifies most new physicians from an ordinary loan.
• No mortgage insurance on many structures. Physician programs are commonly written to avoid it, which is one of the two reasons the math beats a conventional loan for this borrower.
• Jumbo territory without a jumbo file. Current guidelines run to a maximum loan amount of $2.5 million, with cash-out on a refinance capped at $250,000. Reserve requirements scale with the loan size.

What it can and cannot be used for

Yes: a purchase, or a refinance, of the home you will live in.

No: a second home, a vacation property, a rental, or a building for your practice. Physician programs are written for a primary residence and that restriction is not negotiable. If you are buying an investment property, a DSCR loan qualifies on the rent instead of on you. If you are financing a practice, that is commercial lending and a different conversation entirely.

Questions people ask

Is a doctor loan the same as a physician loan?

Yes. “Doctor loan”, “physician loan” and “physician mortgage” all describe the same category of program. Different lenders use different names for it; the underwriting idea is identical.

Can I close before I start the job?

That is the central feature of the product. A signed employment contract, with compensation documented and no unmet contingencies, is what makes it possible. How far ahead of your start date you can close varies by program, so bring the contract to your loan officer early rather than late — it is the document the whole file turns on.

Will my student loans disqualify me?

They are the reason the program exists. Medical education debt is assessed under the program’s own guidelines rather than the standard calculation that treats it like any other installment debt. Bring your servicer statements and your repayment plan.

Are nurse practitioners, physician assistants or pharmacists eligible?

Not under the degree list above. Some lenders run separate professional programs that reach further — into optometry, podiatry, chiropractic and other licensed fields — and availability moves around. Ask; the answer is worth a phone call rather than an assumption.

Is a physician loan always better than a conventional loan?

No, and anyone who tells you otherwise is selling. If you have been practicing for years, have savings, and have a conventional file that stands on its own, run both and compare. The physician program earns its keep when the conventional file cannot be built — not automatically.

What should I have ready?

The signed employment contract, proof of your degree or an anticipated graduation date, student loan servicer statements, identification, and whatever asset statements you have. That is enough for a loan officer to tell you where you stand.

Guidelines described here reflect current program parameters and are subject to change. Availability varies by state, by property and by lender. A licensed loan officer will confirm what applies to your situation before you rely on any of it.