Most traditional lenders take your credit score, debt-to-income ratios, assets and other variables into consideration when determining the amount of money you can borrow and the interest rate you’ll pay on a mortgage.
Unfortunately, on account of massive student loans, most residents or newly licensed physicians have trouble securing the funds they need to purchase the home they really want. Even in the event the bank is willing to loan you money, they often require 5 to 20 percent down, PMI (private mortgage insurance) and outrageous interest rates.
Through extensive research findings, we’ve long known that the vast majority of medical students and doctors have above average credit scores and a history of paying their mortgage dues on time. Therefore, our partners are able to help out doing things other lenders can’t, or won’t do.
Armed with this research, our lenders have put together physician loan packages that don’t take deferred student loans into consideration.
Whether you are a resident or practicing for 20 years, you won’t pay a dime of PMI. This alone will save you hundreds of dollars a year – and you can even secure 100% financing with loan amounts up to one million dollars. No credit report or origination fees, and in most cases, the lender will pay for your appraisal.
In addition, fixed or adjustable rate mortgages are available, giving you the flexibility to decide what’s best for you and your family at any given time in your career.
Contact us now for more information about our physician loans and read our FAQ.
Q: What is the doctor or physician loan?
A: The physician loan is offered by a few lenders across the country. It is designed specifically for residents and practicing physicians that would like to take advantage of a no money down, no PMI mortgage loan. In addition, one of the many features of the doctor loan is that it allows lenders to overlook deferred student loans in debt-to-income ratios.
Q: Who qualifies for the doctor mortgage?
A: Medical residents, existing or newly licensed medical doctors (MD). These include:
- Doctors of Dental Science (DDS)
- Doctors of Dental Medicine (DMD)
- Dental surgeons specializing in oral and maxillofacial surgery
- Doctors of Optometry (OD)
- Doctors of Ophthalmology (MD)
- Doctors of Podiatric Medicine (DPM)
- Doctor of Osteopathy (DO)
Q: Do I have to be a U.S. Citizen or permanent resident to qualify?
A: Yes, most (if not all) doctor loan programs require you to be a U.S. citizen or permanent resident to qualify.
Q: If I am still a medical student, can I qualify for the doctor loan?
A: Unfortunately, the program requires you to be a practicing resident or doctor.
Q: Can I get the doctor loan as an M4 before I start residency?
A: It is possible, but you will have to provide your signed residency contract before you close. You will usually receive your contract 3-4 weeks after match day. You must also have enough funds to cover the mortgage payments until you start receiving income from residency. This may differ among various lenders, so it is always recommended you ask your loan officer before making plans.
Q: My student loans are deferred. Wouldn't conventional mortgage financing programs overlook this debt in my debt-to-income ratios?
A: No. If you were to quit your residency at any time with deferred student loans still pending, those loans would become active again, thus normal mortgage programs would count this as current, active debt. The doctor loan is the only loan program that allows lenders to forfeit this debt.
Q: How do student loans affect my ability to get a mortgage?
A: With traditional, conforming mortgage loans, your student loans are calculated into your debt-to-income ratio (click
here for more info on debt-to-income ratios). With the doctor loan, they do not affect the ratios.
Q: As a resident, how much money can I borrow?
A: This is a difficult question, as it depends on many different factors. Most residents in the U.S. earn between $40,000 - $50,000, depending on the state in which they are practicing and how long they have been in their residency program (ex. PGY-3). If you have other debt such as credit cards, car loans or other unsecured debt, it will affect how much you are able to borrow. Also, if you have a co-borrower/signer with bad credit, you probably won't qualify for the same amount if you were the sole borrower.
Q: What does my FICO score need to be for the doctor loan?
A: While there is no magic number, your score probably does need to be at least 700, and 720+ to get the absolute best terms.
Q:How can I increase my credit score?
A: Please read our guide, "
Understanding Credit Scoring and Credit Repair"
Q: What are my loan options?
A: There are many options available - 30 year fixed, 15 year fixed, 5/1 ARM, etc. Most of the regular loan terms are offered with the doctor loan as well. Please
contact us for more information.
Q: What types of properties are eligible for the doctor loan?
A: Single family homes, townhomes, and condominiums. Please ask your loan officer for the most current property types before making a decision to buy.
Q: Because this is such a unique program, will I be overcharged on interest rates & fees?
A: Absolutely not. In addition to 100% financing and no PMI, the doctor loan has very favorable interest rates and the fees are comparable or better than most conventional mortgage programs.
Q: Aren't there other loans out there with better terms?
A: As of right now, the doctor loan is basically the ONLY conventional mortgage loan available that requires no down payment AND no PMI. That, in itself is probably the biggest draw, in addition to the fact that deferred student loans don't count towards debt-to-income ratios.
Q: What is PMI?
A: PMI is private mortgage insurance. It is a type of insurance many mortgage programs require to offset any losses taken by the lender in the case you are not able to make your payments on the loan. For more information, please go
here.
Q: What is a declining market?
A: A declining market is an area in the country that is determined to be declining by the automatic underwriting systems used by Freddie Mac and Fannie Mae. This is a new regulation, instated January 9, 2008. These areas require 5% down to qualify for the doctor loan.
Q: Am I obligated to use the lender you connect me with, or accept his offer?
A: Absolutely not. You can shop around (and we encourage you to do so) until you find someone that offers the rates and terms you are most satisfied with.
Q: If I send Doctor Loan USA my contact information, will I get bombarded with phone calls?
A: No. Unlike many online services who give your contact information to four or more lenders, we connect you directly with only one qualified, national lender who specializes in doctor loans. If you are unsatisfied with any part of your lender's performance or rates, politely tell him/her you have found another lender and you will not be contacted again unless you request they do so.
Q: Is Doctor Loan USA a lender, bank or mortgage broker?
A: No. We are an agency that connects physicians with lenders that have been determined to be the best in the market. We do not originate any loans and therefore cannot answer specific questions about rates, amounts, etc.
Q: Are there any fees associated with using Doctor Loan USA?
A: There are no fees, obligations, requirements or pre-payments whatsoever. Our sole purpose is to connect you with lenders you may not have access to locally that specialize in physician loans.
Q: After I submit my information, when can I expect to hear from a lender?
A: You will be contacted within one business day. In the rare case that you are not contacted, please get back in touch with us and we will do our best to have someone contact you as soon as possible.
Q: How will a lender contact me?
A: Usually the first form of communication is via email. Our lending partners are very sensitive to your busy schedule and will go out of their way to accommodate you. If you prefer email only, please tell your lender and he will call only when absolutely necessary.
Q: Will my information or email address be shared or sold to other companies?
A: Absolutely not. We do not publish, list or sell your private information to anyone other than the sole lender you are matched with. For more information, see our privacy and security policy.
Q: Is it risky for me to work with a lender that doesn't live in my area?
A: Not at all. Due to the nature of the doctor loan and the limited amount of lenders that offer it, working with a lender across the country is very common. With access to email, fax and phone, you will be able to provide the lender with all the information needed and vice versa. Of course, if you feel safer dealing with someone locally, that is your decision. Some people prefer being able to walk into an office and deal with a lender face-to-face.
Please note:
This FAQ is not meant to be a comprehensive list of all doctor loan program guidelines and is not legal advice. Mortgage programs may change without notice, so please consult with your individual loan officer when you have any specific questions.
Home
Contact
PMI 
