What Is a Physician Mortgage Loan?
Homeownership can feel out of reach for many doctors in California, especially early in their careers. High student loan balances, limited savings, and short employment histories often stand in the way of qualifying for a traditional mortgage. On top of that, California’s real estate market is among the most expensive in the country. That’s where physician mortgage loans come in.
At LBC Mortgage, we specialize in helping medical professionals find the right mortgage — with low or no down payment, flexible underwriting, and tailored solutions that work for busy doctors. If you’re a resident, fellow, or practicing physician in California, a doctor loan may be the right path to homeownership.
A physician mortgage loan is a home loan created specifically for medical professionals, including doctors, dentists, and in some cases, veterinarians and pharmacists. These loans recognize the unique financial profile of doctors — especially early in their careers — and offer terms that help overcome common roadblocks to homeownership.
Unlike conventional mortgages, physician loans typically allow for little to no down payment. They also do not require private mortgage insurance (PMI), even when the down payment is less than 20 percent. Lenders offering these programs understand that physicians often carry high student loan debt, so they use more flexible debt-to-income (DTI) calculations that consider future income and sometimes ignore deferred student loans.
Many programs allow doctors to qualify using an offer letter or signed employment contract — even if they haven’t started working yet. This allows medical professionals to secure housing before beginning a new position, which is especially useful when relocating.
Why Doctor Loans Are So Valuable in California
The cost of housing in California is a major concern for new and experienced doctors alike. In cities like San Francisco, San Diego, and Los Angeles, even a modest single-family home can cost over $1 million. Traditional mortgage guidelines can make it difficult for doctors to qualify, especially without a 20 percent down payment.
Physician loans are designed with these challenges in mind. Because they allow for high loan amounts with low down payments, doctors can purchase homes in competitive California markets without waiting years to save. The absence of PMI also lowers monthly costs, making homeownership more affordable.
For a doctor with good credit and a strong job offer, a physician mortgage loan can open doors that a conventional loan might close.
How Physician Loans Work with Student Debt
One of the main benefits of a physician mortgage loan is how it treats student loan debt. Doctors often graduate medical school with six figures of debt. In a conventional mortgage, this can make DTI ratios too high to qualify. Physician mortgage lenders take a different approach.
Many lenders ignore deferred student loans or use lower monthly payment estimates when calculating DTI. Some will accept income-based repayment amounts. This gives doctors more buying power and allows them to qualify for a mortgage even when their debt-to-income ratio is technically outside standard limits.
Physician Loans and Employment Start Dates
Another key benefit is that physician loans often allow you to close on a home before you officially start your job. If you have a signed contract or offer letter with a start date within the next 60 to 90 days, many lenders will accept that in place of proof of current income.
This is especially helpful if you’re relocating for residency or a new position and want to move into your home before your first day at work. You don’t have to wait to build up a few months of pay stubs — you can secure your home in advance.
Features and Benefits of Physician Mortgage Loans
Physician mortgage loans come with features designed to match the real-world needs of medical professionals. Some of the most notable benefits include:
Low or Zero Down Payment
Most physician loan programs offer options with 0 to 5 percent down. This is critical in high-cost areas like California, where a 20 percent down payment can easily exceed $150,000 on a modest home.
No Private Mortgage Insurance
Lenders offering doctor loans typically waive PMI, even when the down payment is less than 20 percent. That means hundreds of dollars in monthly savings, helping to reduce overall loan costs and making monthly payments more affordable.
Higher Loan Limits
Physician mortgage programs often exceed the loan limits of conventional loans. In California, where home prices often exceed the conforming loan limit, this allows doctors to borrow more without needing a jumbo loan or facing stricter requirements.
Flexible Underwriting
Physician loans look beyond the standard requirements. You may be able to qualify with:
- A signed employment contract
- Limited savings
- Deferred student loans
- Recent graduation or completion of residency
This flexibility can mean the difference between renting and owning.
Who Qualifies for a Physician Mortgage Loan?
Eligibility depends on the lender, but most physician mortgage programs are available to:
- Medical doctors (MD, DO)
- Dentists (DDS, DMD)
- Podiatrists (DPM)
- Veterinarians (DVM)
- Pharmacists (PharmD), in some cases
- Residents and fellows in accredited programs
Many lenders require you to be within 10 years of completing training. Others extend eligibility to attending physicians with longer work histories.
Credit requirements are usually moderate — most lenders look for a FICO score of 700 or higher, though some accept lower scores depending on other factors.
Physician Loan Programs in California
Several major banks and lenders offer physician mortgage programs in California. These programs vary by region, loan amount, and borrower profile. Some of the most common providers include:
Bank of America
Offers doctor loans with low down payment options and no PMI. Financing may be available up to $2 million, and student loan considerations are generous.
BMO Bank
Provides 100 percent financing options and allows home purchase before employment begins, with a signed contract. Strong options for residents and new physicians.
Other Specialized Lenders
Many regional banks and credit unions offer doctor loan programs with competitive rates and flexible terms. Some focus exclusively on medical professionals, offering support tailored to the unique needs of physicians in California.
Is a Physician Loan Right for You?
While physician mortgage loans offer major benefits, they aren’t right for everyone. In some cases, the interest rate may be slightly higher than conventional loans, especially if you’re putting 20 percent down. If you’ve been practicing for several years and have strong savings, a conventional loan might offer lower total costs.
However, if you’re early in your career, relocating for work, or want to minimize your upfront costs, a physician loan may be the best fit. It’s especially valuable if you want to buy a home in a competitive California market without waiting to save a large down payment.
At LBC Mortgage, we analyze your full financial picture and explain all your options — from physician loans to conventional, FHA, or VA programs. We help you compare costs, rates, and terms so you can make the best decision for your future.
Why Work With LBC Mortgage?
At LBC Mortgage, we understand how complex home financing can be for doctors. Whether you’re finishing residency, starting your first attending job, or relocating your family, we’re here to help you navigate every step of the loan process.
We know which lenders offer the most flexible physician loan terms in California. We’ll help you compare multiple programs and secure the best possible rate — without the stress or confusion of going it alone. Our experience with medical professionals allows us to deliver fast, personalized service that fits your schedule and your career.
