Doctor's Loan: The Complete Guide for Medical Professionals
You've spent a decade in school, racked up student loan debt, and are just starting your attending position — but you're ready to buy a home. There's one problem: your financial profile doesn't look like a typical borrower. No down payment saved, sky-high DTI from student loans, and maybe only months of work history at your new hospital. The Doctor's Loan was built exactly for this situation.
What Is a Doctor's Loan?
No minimum saved
Even at 100% LTV
from DTI for residents
A Doctor's Loan (also called a physician mortgage or medical professional home loan) is a specialized mortgage program designed for licensed medical professionals — particularly those who are early in their careers. The core insight behind these programs is simple: doctors have exceptional long-term earning potential and historically very low default rates, even when their current financial snapshot doesn't fit conventional underwriting boxes.
Doctor's Loans allow qualified borrowers to purchase a primary residence with 0–5% down, no private mortgage insurance (PMI), and flexible treatment of student loan debt — even before the first paycheck from a new job.
Who Qualifies?
Most programs require at least one borrower to hold one of the following active professional designations:
Note: Chiropractors are generally not eligible for Doctor's Loan programs.
Doctor's Loan vs. Conventional vs. FHA: Key Differences
| Feature | Doctor's Loan | Conventional | FHA |
|---|---|---|---|
| Min. Down Payment | 0–5% (no PMI) | 3–20% | 3.5% |
| PMI / MIP Required | No | Yes (if < 20% down) | Yes (lifetime MIP) |
| Min. Credit Score | 680 | 620 | 580 |
| Max Loan Amount | $2,000,000 | $806,500 (conforming) | $498,257 (most areas) |
| Max DTI | 45–50% | 43–50% | Up to 57% |
| Student Loan Treatment | IBR / deferred may be excluded for residents | 1% of balance or IBR payment | 1% of balance or IBR payment |
| Pre-employment Income | Offer letter / contract accepted (within 60–150 days) | Not allowed | Not allowed |
| Manual Underwrite | Required (no AUS) | AUS accepted | AUS accepted |
| Cash-Out Refi | Not allowed | Allowed | Allowed |
Application Process: Step by Step
Get Pre-Qualified
Talk with a loan officer who specializes in Doctor's Loans. Share your current status (resident, fellow, attending), start date if new job, estimated purchase price, and state. You'll get a pre-qualification letter — typically needed before making an offer.
Submit Your Application
Complete the Uniform Residential Loan Application (Form 1003). Your lender will pull a tri-merge credit report from all three bureaus. Minimum score: 680.
Provide Documentation
This is the heart of the process. See the full document checklist in the next section.
Property Appraisal
Lender orders an independent appraisal to confirm the property's market value. Appraisals are valid for 120 days (with possible 60-day extension to 180 days).
Manual Underwriting Review
Doctor's Loans require full manual underwriting — no automated AUS. An underwriter reviews the complete file, including student loan status, employment contract, assets, and credit history.
Conditional Approval & Clear to Close
The underwriter issues conditions — typically documentation gaps to address. Once all conditions are cleared, you receive your Clear to Close (CTC).
Closing
Sign documents with a title company or escrow agent. You'll pay closing costs (typically 2–4% of the loan amount) and any required reserves. You receive the keys.
Document Checklist by Scenario
Required documents vary based on your employment situation. Here's what to prepare:
- Most recent 30-day pay stubs (Year-To-Date income shown)
- Most recent 1–2 years W-2 forms
- Verbal Verification of Employment (VVOE) — completed within 10 business days of closing
- Government-issued photo ID
- Most recent 2 months bank statements (all pages)
- Proof of medical license / professional degree
- Fully executed employment contract or offer letter (signed by both parties)
- Contract must state: position/title, start date, salary/compensation, minimum 12-month coverage
- Only contingencies allowed: medical license receipt, standard background/drug checks
- Proof of medical license (or pending license receipt)
- Government-issued photo ID
- Most recent 2 months bank statements
- Evidence of reserves to cover PITIA payments from note date to employment start date
- Proof of residency/fellowship program enrollment
- Current residency contract or offer letter
- Most recent pay stubs from residency program
- Documentation confirming student loan IBR or deferment status
- Government-issued photo ID
- Most recent 2 months bank statements
- Proof of medical degree
- Fully executed employment contract with guaranteed/minimum salary or hourly rate
- Contract must state: number of hours, 12+ month period, start within 60 days of closing
- Letter from hospital/clinic confirming no out-of-pocket expenses for the physician
- If taxes already filed using 1099 income: 2 years personal tax returns required
- Government-issued photo ID
- Most recent 2 months bank statements
Common Questions About Eligibility
Med student who hasn't started residency yet — does this apply to me?
Yes. If you have a signed residency contract or employment offer, some lenders will qualify you using that future income — as long as you start within 90–150 days of closing. You'll need cash reserves to cover your monthly housing payment between closing and your start date.
Can parents gift money for the down payment or closing costs?
Yes. Gift funds from immediate family members are generally allowed under Doctor's Loan programs — no minimum borrower contribution required. The donor must provide a signed gift letter, and the funds must be fully sourced and documented. Parents can also potentially co-sign, though the co-signer's income contribution to qualifying is typically capped.
I'm a CRNA, not a physician — do I qualify?
Yes, if you hold a DNAP or DNP degree. Certified Registered Nurse Anesthetists (CRNAs) are explicitly listed as eligible borrowers in most Doctor's Loan programs. Many CRNAs earn $180K–$250K+ and are ideal candidates. Don't assume this program is doctor-only.
I already own a home and want to move up. Can I still use a Doctor's Loan?
Yes — Doctor's Loan programs are not limited to first-time buyers. As long as the new property is your primary residence, you can use this program to purchase a move-up home up to $2,000,000 with 0–5% down and no PMI. Your existing home's equity or planned sale proceeds can count toward reserves.
Is this too good to be true? What's the catch?
It's a real product with real tradeoffs. Lenders offer these programs because physicians have historically very low default rates — the risk profile supports the flexibility. The tradeoffs: Doctor's Loans typically carry slightly higher interest rates than conventional loans with 20% down, require manual underwriting (longer process), are limited to primary residences, and don't allow cash-out refinancing. Running the numbers with a loan officer — comparing a Doctor's Loan vs. conventional with PMI — is the right way to decide what's best for your situation.
Frequently Asked Questions
Q: Can I use a Doctor's Loan before I start my job?
Yes. Some lenders accept an executed employment contract as qualifying income if your start date is within 90–150 days of the note date, while others may require you to start sooner. The contract must be fully signed by both parties and include a stated salary with compensation coverage of at least 12 months.
Q: Do I need to pay PMI with a Doctor's Loan?
No. One of the defining features of Doctor's Loan programs is that PMI (Private Mortgage Insurance) is NOT required, even when borrowing 100% of the purchase price. This can save $200–$800/month on a $1M loan compared to a conventional loan with PMI.
Q: How are my student loans counted?
For residents and fellows who qualify based on current residency income and whose loans are in IBR (Income-Based Repayment) or deferment, student loan payments can be excluded from the DTI calculation entirely. For attendings, the IBR payment or credit report payment amount is typically used.
Q: Can I get a Doctor's Loan for a rental property or second home?
No. Doctor's Loan programs are strictly limited to primary residences — 1-unit properties only. You must occupy the property as your primary home within 60 days of closing.
Q: What credit score do I need?
The minimum is 680 for most programs. The qualifying score used is the lowest representative score across all borrowers on the loan.
Quick Summary
- Designed for MDs, DOs, dentists, pharmacists, CRNAs, and other licensed medical professionals
- 0–5% down with NO PMI — even at 100% LTV
- Loan amounts up to $2,000,000
- Residents and fellows: student loans in IBR/deferral can be excluded from DTI
- Future employment contracts accepted (job not yet started)
- Gift funds from family allowed — no minimum borrower contribution
- Available for first-time buyers AND move-up purchasers
- Primary residence only, 1-unit property
Ready to Find Out What You Qualify For?
Whether you're a resident with an offer letter, an attending moving up, or a CRNA buying your first home — a Tiger Loans specialist can walk you through your options in minutes.
Talk to a Physician Loan SpecialistRelated Articles:
This article is for informational purposes only and does not constitute financial or legal advice. Loan programs, guidelines, and rates are subject to change. Contact Tiger Loans, Inc. NMLS #1169300 for your personalized mortgage consultation. Tiger Loans is a licensed mortgage lender. Equal Housing Lender.