Homebuyers

Doctors, Dentists, and Pharmacists: How Physician Mortgages May Help You Buy a Home

Doctors straight out of medical school are often carrying six figures of student loan debt. That financial burden can make achieving homeownership feel like a challenge for many new medical professionals.

This is where physician mortgages come in. Also called medical doctor home loans or doctor mortgage loans, these mortgages are especially designed for doctors, dentists, residents, and other medical professionals.

Many doctors don’t have a down payment despite having a high income, said Jim Dahle, an emergency physician and founder of The White Coat Investor, a personal finance site for doctors.

That’s at least partially due to the average medical student debt being $216,659 in 2025, according to the Education Data Initiative. 

The good news for medical professionals is these home loans typically allow for a low or no down payment. This may make it easier for high earning but heavily indebted clinicians to buy a home earlier in their careers.

“We’re just trying to get people in sustainable homeownership,” said Angel Duke, vice president of product development at New American Funding.

How do physician mortgages work?

The big advantage of a home loan for medical professionals is the low, or no, down payment.

Some lenders will provide 100% financing for loans up to $2 million to those who qualify for the mortgages. More expensive homes may require a low down payment.

Another attractive feature is the ability to waive private mortgage insurance (PMI). Homebuyers who put down less than 20% for a down payment typically must pay PMI. This additional expense can add hundreds of dollars onto your monthly mortgage payment. But most physician mortgages allow borrowers to skip paying PMI.

These home loans can be structured with either a fixed or adjustable interest rate. Mortgage interest rates for fixed-rate loans don’t change during the duration of the loan. Adjustable-rate mortgages typically start with a fixed rate for the first years of the loan. Then the rate adjusts to market rates every six months or a year up to a certain cap.

The choice between the different loans provides medical professionals with flexibility depending on their long-term financial goals and how long they plan to stay in the home.

Physician mortgages aren’t just for home purchases. If mortgage rates have dropped since you bought your home, you may be able to refinance with a physician mortgage. This may help you to potentially eliminate your PMI in the process.

One important limitation: you can’t do a cash-out refinance with a physician mortgage. Cash-out refinances are when you replace your mortgage with a larger one and pocket the difference.

Doctor loans are designed to help you get into a home, not to extract equity from the property. If you want to tap into your home’s equity, you’ll need to look at other loans.

Who may be able to qualify for a physician mortgage?

Physician mortgages are generally for doctors, dentists, and pharmacists. Veterinarians may qualify as well.

If you’re using a physician’s mortgage, you must be buying a primary residence. You can’t use a physician’s mortgage to purchase a vacation home or investment property.

You will also generally need a credit score of at least 680. However, lenders may want to see a higher score if you’re buying a more expensive property.

Lenders will also look at your employment situation, which can vary widely. While some lenders focus more on new medical professionals, specialty mortgage lenders can be more flexible.

New residents with an employment contract as well as seasoned professionals with their own practices may be able to qualify for these loans.

What to consider before using a doctor’s mortgage

While mortgages for doctors and other medical professionals offer many advantages, there are some tradeoffs.

Mortgage interest rates may be slightly higher than they are for Conventional loans, which require a down payment. However, you may save money by not paying PMI.

Also, just because you qualify for a large loan doesn’t mean you should max out your borrowing. Consider your other debts, future financial goals, and potential changes in income.

For medical professionals who struggle to balance high student loan debt with homeownership, a physician mortgage may make sense.