Doctor loans for physicians, residents and fellows

Doctor loan questions, answered in plain English

Type your question or tap a topic. Every answer starts with the short version, and you can read more if you want the details.

• What is a doctor loan?

  Short answer: A doctor loan, also called a physician mortgage, is a home loan for medical professionals who have big student loans and little cash saved for a home.

  The lender sets its own rules instead of following FHA or Fannie Mae guidelines. That lets it count a signed job contract, leave some student loan payments out of the math and skip mortgage insurance.

• Who qualifies for a doctor loan?

  Short answer: At least one borrower needs a qualifying degree: MD, DO, DDS, DMD, PharmD, DVM or VMD, DPM, or a CRNA with a DNAP or DNP.

  Residents, fellows and interns who hold one of those degrees can apply too. Some options also accept physician assistants (PA), nurse practitioners (NP) and optometrists (OD), and one option adds registered nurses (RN), clinical nurse specialists (CNS) and chiropractors (DC). You still need to meet the credit, income and property guidelines.

• Do dentists, pharmacists and veterinarians qualify?

  Short answer: Yes. Dentists (DDS, DMD), pharmacists (PharmD) and veterinarians (DVM, VMD) can use any of the doctor loan options we offer.

  Podiatrists (DPM), psychiatrists and ophthalmologists with an MD or DO, and nurse anesthetists with a DNAP or DNP qualify on every option too.

• Can nurses or physician assistants get a doctor loan?

  Short answer: Some can. Physician assistants and nurse practitioners qualify on some options, and registered nurses and clinical nurse specialists qualify on one option.

  Each option has its own credit and loan guidelines. Tell us your license and we'll match you to the option that accepts it.

• Do you offer doctor loans in Florida and Georgia?

  Short answer: Yes. We arrange doctor loans in Florida and Georgia, plus Michigan, North Carolina, Tennessee and Texas.

  Our office is in Flagler Beach, Florida. A licensed loan officer can help you in any of those six states by phone or online, and you'll sign closing papers in person near your new home.

• Can a parent or partner who won't live in the home co-sign?

  Short answer: On some options, yes.

  One option allows a co-borrower who won't live in the home if their income makes up no more than half of the total. Another option doesn't allow it. Every borrower needs a credit score on that option.

• Can I buy through my LLC or a trust?

  Short answer: No. LLCs, corporations, partnerships and land trusts can't take a doctor loan.

  Life estates, irrevocable trusts and guardianships aren't eligible either. You also can't use this loan if you own any part of a business that's illegal under federal law, such as a cannabis business.

• Can I get a doctor loan during residency or fellowship?

  Short answer: Yes. Residents, fellows and interns with a qualifying degree can apply.

  You'll need either a signed employment contract with no conditions left to meet or a completed doctoral degree. The lender also needs proof of the degree from a third party, such as your school.

• Can I buy a home before my new job starts?

  Short answer: Often, yes. A doctor loan can qualify you on a signed, non-contingent employment contract for your new position.

  Non-contingent means the offer doesn't hang on anything still pending. Send us your contract before you make an offer on a home and we'll check it against the guidelines.

• How are my student loans counted?

  Short answer: If you're in residency or fellowship now and qualify on that income, payments that are deferred, in forbearance or $0 on an income-based plan can be left out of your debt-to-income ratio.

  Otherwise the lender uses the payment on your credit report or a documented income-driven repayment payment. For deferred or forbearance loans it uses 1% of the balance or a fully amortizing payment. One option uses 0.5% of the balance when your credit report shows a $0 payment.

• What debt-to-income ratio do doctor loans allow?

  Short answer: Doctor loan options generally allow a debt-to-income (DTI) ratio between 45% and 50%.

  DTI is your monthly debt payments divided by your monthly income before taxes. Your limit depends on the option, the loan type and how much you borrow compared to the home's value.

• Do doctor loans require PMI?

  Short answer: No. The doctor loan options we offer don't charge private mortgage insurance (PMI).

  PMI protects the lender. Skipping it means more of your monthly payment goes toward the loan and the home.

• How much do I need for a down payment?

  Short answer: It depends on the option, your credit score and how much you borrow. Doctor loans are built for buyers who haven't saved much yet.

  Call us and we'll show you the exact figures for your situation, with the APR and full loan terms. Plan for closing costs too. Your Loan Estimate lists every cost before you commit.

• How much can I borrow with a doctor loan?

  Short answer: Loan amounts generally run from $100,000 to $2 million, and one option goes up to $3 million.

  Your income, debts, credit and the home's value set your actual amount. Loans above $832,750 in most counties are jumbo loans, and doctor loans cover that range too.

• What credit score do I need?

  Short answer: Most options look for a score of 700 or higher, and one option starts at 680.

  That option uses FICO scores only, not VantageScore. It also asks for at least 24 months of credit history with at least one open account.

• Can I choose a fixed rate or an adjustable rate?

  Short answer: Yes. You can choose a fixed-rate loan or an adjustable-rate mortgage (ARM) with a set opening period.

  An ARM's rate can change after the opening period ends. We'll show you both side by side, with the APR and full terms, before you choose.

• Can I refinance into a doctor loan?

  Short answer: Yes, with a rate-and-term refinance, which changes your rate or your loan's length.

  Cash-out refinancing isn't offered. One option limits cash back at closing to 1% of the loan.

• Is a doctor loan better than an FHA or conventional loan?

  Short answer: It depends on your savings, your student loans and where you are in your career.

  A doctor loan often fits when you have big student loans, a new contract and little cash saved. If you have savings and strong credit, a conventional loan may cost less over time. We'll compare both for you.

• Can I use a doctor loan for a second home or a rental?

  Short answer: One option covers a second home. Rentals and investment properties don't qualify.

  The other options are for the home you'll live in. For a rental, look at a DSCR loan.

• What kinds of homes qualify?

  Short answer: Most homes you'd live in qualify, including houses and warrantable condos.

  Ineligible homes include non-warrantable condos, condotels, mixed-use and commercial properties, working farms or ranches, unique properties, homes in poor condition and properties that earn income. Construction-to-permanent and bridge loans aren't offered. Homes on more than 10 acres have extra limits on most options.

• Does a doctor loan need an appraisal?

  Short answer: Yes. Every doctor loan needs a full appraisal, and the lender orders a second check of the value too.

  That second check can be a review score, a desk review, an automated value or a second appraisal. If the values differ, the lender uses the lower one.

• Can I close remotely or sign electronically?

  Short answer: No. Doctor loans close in person.

  We'll set up your closing with a title company or closing attorney near the home.