Medical Mortgage Guide for Doctors

Medical Mortgage Guide for Doctors

Table of contents

If you’re currently a doctor or about to become a medical doctor (MD, DO, or sometimes DPM) or in some instances a dentist (DDS or DMD), you could qualify for certain home loans designed specifically for doctors. These medical mortgages offer advantages and benefits that a conventional loan often does not.

Key takeaways

  • Medical mortgages are home loans for medical professionals.
  • They offer benefits like no PMI, flexible DTI, and low down payments.
  • Medical loans differ from conventional loans in their requirements.
  • Key Bank, TD Bank, and TCF/Chemical Bank provide physician loan options.
  • Borrowers can explore options with Hero Home Programs.


mortgage for doctors


What is a medical mortgage or physician mortgage loan?

A medical mortgage, sometimes called a physician loan, is a special home loan available only to medical professionals. Some lenders also consider dentists and veterinarians for this loan, but most commonly it’s for incoming or practicing physicians.

Ae medical mortgages’ main feature is that it requires no PMI (private mortgage insurance), has flexible DTI (debt to income) requirements, and enables you to qualify without showing two years of income. Because doctors frequently have large sums of student debt early in their career, they may not always have the liquid assets other professionals do for a down payment.

Furthermore, data shows that doctors generally have a very good track record for paying back education loans in full. Because doctors generally have a decent amount of income, lending institutions are more likely to make allowances since they aren’t taking on a risky borrower.


Differences in conventional loans and doctor mortgage loans

The main differences between a medical mortgage loan and a conventional loan are that medical loans do not require a PMI, they have a flexible DTI (debt to income) ratio, they will accept low to no money down payments, and they have flexible employment and income requirements. Let’s look at these main features of a medical mortgage closer.


Advantages of medical mortgage loans


Eliminates Private Mortgage Insurance (PMI)

In a typical conventional or FHA loan, to qualify for no PMI you need to provide at least a 20% down payment. Because most future doctors graduate with a six-figure student loan debt, the majority of their liquid assets go towards paying down these loans for many years and they are often unable to come up with this lump sum.


No need to prove a 2-year income history

Because the path to becoming a doctor requires years of schooling followed by years of internships and residencies, it’s not always easy for prospective buyers to show a 2+ year income history, a requirement for most conventional loans. But, because the future earning potential of doctors is so high, this requirement is often waived if you can prove you have a secure job.


Reduces the influence of your Debt to income ratio (DTI)

Conventional or FHA loans calculate your ability to pay back your loan by factoring in your DTI. If it is deemed too high, meaning too much of your monthly income goes towards paying previous loans, you will not be approved. This is commonly based on a calculation of 1% of your outstanding balance on the debts you bring to the loan. For doctors, this number can be quite high. Average medical school debt is 200K-250K, so a conventional lender would assume you are making payments of $2,500 a month toward this and that would be counted against your DTI.


Allows you to qualify before beginning a new job

This ties in with the waiving of the 2+ year income history. Many lenders for medical mortgages will accept an employment contract as proof of income. For example, if you are moving from a residency to a permanent position, you may be able to close on your loan before you actually start your new job as long as you can provide proof of upcoming employment.


Less stressful compared to FHA and conventional loans

Because of the lowered thresholds for down payments and DTI ratio, most physician loans are able to close faster and the general process is smoother.


Medical mortgage programs available

There are a number of banks and lenders who provide options for physician loans, but below you will find some of the more well-known institutions and their practices. All medical mortgage lenders will have slightly different requirements.

It is recommended that you explore your options and get quotes from multiple lenders. Working with a home loan specialist is advisable as they can assist you with streamlining the process of your home purchase.


Medical mortgage lenders

  • Key Bank: Key Bank is one of the largest banks in the U.S. and is found mostly in the western United States. They will accept 5% down payments for homes valued up to $1 million, no PMI, and provide options for fixed or variable rates.
  • TD Bank: One of the ten largest banks in the U.S. and more prevalent in the eastern states, TC Bank is able to offer some borrowers 0% down for purchases up to 750K, no PMI, and provides refinancing loans as well as home loans.
  • TCF/Chemical Bank: A great option for borrowers located in the midwest, TCF or Chemical Bank provides options for 0% down on purchases up to $1 million, no PMI, and allows future income to be used for up to 3 months after closing.


Medical mortgage home loan specialists

  • Hero Home Program: This program covers more professions than just doctors (nurses, emergency workers, and teachers to name a few) and is a great option for doctors-to-be to find a home loan. This program works with borrowers to reduce lending fees and offer rebates after purchase (usually .7% of the purchase price). The company reports that most users save $2,400 on average when they work with their specialists. If you are looking into a medical mortgage, start with Hero Home Programs™.


Contact us today!

Physician loans are a great option if you’re looking to buy soon after finishing your schooling, and know that you will have the majority of your income tied up in school debt for many years to come. Working with specialists at Hero Home Programs™ allows you to save money on your home purchase. Request a consultation with us today and we will work to streamline the process and maximize your savings.

Picture of Jacquelyn Sublett
Jacquelyn Sublett

I love teaching and writing on real estate, finance and mortgage topics. I find it fulfilling hearing stories of first time home buyers who we have helped with the home buying process. Writer for the Hero Homebuyer Programs™

Connect with the Author:

Recommended Posts

What Our Buyers Think

Jules S.
Read More
"5 star service is what you will get when you work with him!ᅠ Not only does he know his product like no other, he makes a special point of communicating throughout each transaction and his follow up skills are unparalleled. Perhaps most importantly, he delivers on his promises!ᅠ Give him a try for your mortgage needs.ᅠ You will not be disappointed!"
Jeremy H.
Read More
"An outstanding job handling refinances.  One of those knowledgeable, straight-shooters - which is really appreciated when you're shopping for a home loan. He can answer a million of questions with ease.  Looking back at the responsiveness, he was outstanding and you can do everything he suggested."
Jaina D.
Read More
"You can rely on them, very professional and quick in responding to your queries. He is very friendly and makes sure we understand the process and keeps us posted on the status of our loan. His efforts are greatly appreciated."
Eshawn W.
Read More
“By far the best lender we’ve worked with. Got us the best loan amount than any other lender. He worked with us hand in hand, he is professional, and he made the process enjoyable.”
Jaina D.
Read More
"You can rely on them, very professional and quick in responding to your queries. He is very friendly and makes sure we understand the process and keeps us posted on the status of our loan. His efforts are greatly appreciated."
Cass Z.
Read More
“I called looking for information about the process of applying for a mortgage/refinance and am just blown away with how helpful the information I received was!”
Stephanie F.
Read More
“I have hope because of you for making my home ownership dream come true. I feel such a connection with you and am excited to work with you. Have an amazing day!”
Rachel S.
Read More
"Highly ethical, attentive and helpful! A fantastic combination of personable and hard working. He makes everyone feel important and understood."
Cliff S.
Read More
“Hands down the best mortgage professional I’ve worked with in 20 years. Knowledgeable, honest, reliable and above all an outstanding communicator.”
Jose A.
Read More
"He worked on getting the lowest rate and kept me informed on each step of the process from the beginning to closing. Thank You!"
Nicholas H.
Read More
“Thank you for your prompt help and AMAZING assistance. Hands down, best lender I have ever worked with. Top notch!”
Read More
“I would be 100% interested in working more with you! You have proven to be an amazing lender”
Sandy C.
Read More
“Absolutely the most knowledgeable, friendly and honest expert I’ve ever worked with!”
Steve R.
Read More
"A pleasure to work with. He was very prompt and courteous with his responses and genuinely cares about the clients he works with."
Kevin H.
Read More
"Professional, responsive and honest assistance with the whole refinancing process from beginning to end."

We help you reach home ownership.

No catch. No hidden fees.

Have you served in the military or your community as a healthcare provider, teacher, or first responder? Are you a member of your local union or work for your city government?

Are you looking to buy a home but don’t know where to start when it comes to finding your best home financing options?

At Hero Home Programs™, our teams are dedicated to helping community heroes like you through the home purchasing process by finding the best grants, rebates, and loans in your area in order to maximize your savings and help you achieve homeownership.

Contact our team today to learn how we can and mortgages can change your life.

Resource Guides

Complete A to Z guides on your home purchase journey.

Learn about the process for getting a home loan

What steps you can take to improve your credit score

Tips and tricks for moving into your new home

Your step-by-step guide for buying a new home

Scroll to Top