Doctor Loans in 2026: How Physicians Buy a Home With 0% Down and No PMI
A doctor loan - also called a physician mortgage - is a home loan built for physicians, dentists, and select medical professionals that allows as little as 0% down, charges no private mortgage insurance (PMI), and treats student loans the way an income-driven repayment plan does. It exists because new doctors have high future income but heavy student debt and little saved for a down payment.
That combination - a big salary on the horizon, a big loan balance today - is exactly what trips up a conventional mortgage. A doctor loan is designed around it.
Why doctor loans exist
The average medical school graduate who carries debt owes about $216,659, and roughly 70% of the class of 2025 graduated with education debt (AAMC, via Education Data Initiative, 2025). Add undergraduate borrowing and the typical figure is closer to $246,659.
A conventional underwriter looks at that balance and a thin down-payment fund and often says no - even when the borrower is a first-year attending about to earn a strong, stable income. Physician mortgage programs were created so lenders could underwrite the career instead of just the current bank statement.
How a doctor loan works: the key features
Doctor loans differ from conventional mortgages in a few specific, high-impact ways.
| Feature | Doctor Loan | Conventional Loan |
|---|---|---|
| Down payment | As low as 0%; commonly 0-10% | Typically 3-20% |
| PMI (mortgage insurance) | None, even under 20% down | Required under 20% down |
| Student loan debt in DTI | Excluded, or the income-driven (IDR/IBR) payment is used | ~1% of balance or the full payment counted |
| Proof of income | Signed employment contract or match letter accepted before you start | Usually requires pay stubs / start date |
| Who it''s for | Physicians, dentists, and select medical professionals | Any qualified borrower |
| Typical max loan | ~$1M at 0% down; up to $2M+ with a small down payment | Conforming limit $832,750 (2026 baseline) |
| Occupancy | Primary residence | Primary, second, or investment |
The two features that move the needle most are no PMI and the student-loan treatment. Skipping PMI on a $600,000 home with 5% down can save roughly $237-$475 per month - potentially $17,000-$40,000 over the life of the coverage. And excluding or minimizing student debt in the debt-to-income calculation is often the difference between qualifying and not.
The trade-off: physician loan rates typically run about 0.125%-0.375% higher than comparable conventional rates, since the lender is taking on the risk that PMI would normally cover. For many new doctors the monthly PMI savings and the ability to qualify at all outweigh the slightly higher rate - but it''s worth running both scenarios.
Who qualifies for a doctor loan?
Eligibility centers on medical and dental degrees. Most programs accept MD, DO, DDS, DMD, DPM, and OD professionals; some extend to additional doctoral and healthcare professionals depending on the lender. Residents, fellows, and practicing attendings are all commonly eligible. Beyond the degree, expect lenders to look for a credit score around 700-720+, a signed employment contract or residency match letter, and the loan to be for a primary residence you''ll live in.
Can residents and fellows qualify?
Yes. This is one of the defining advantages of the program. Most physician mortgages let residents and fellows qualify using a signed employment contract or match letter as proof of future income - often as early as 60-90 days before the job starts - rather than requiring months of pay stubs at the new salary. That lets a doctor buy a home around the time they relocate for training or a first attending role, instead of waiting a year or more.
Doctor loan vs. conventional: which makes sense?
A doctor loan usually wins when you have strong future income, significant student debt, and limited cash for a down payment - the classic new-physician profile. A conventional loan can be the better long-term choice if you have 20% to put down and little student debt, since you''d avoid both PMI and the small rate premium. The right answer depends on your numbers, which is exactly the comparison a mortgage broker can run for you side by side.
Frequently asked questions
What is a doctor loan? A doctor loan (physician mortgage) is a home loan for physicians and select medical professionals that allows as little as 0% down, requires no PMI, and treats student loan debt using income-driven payment amounts instead of the full balance.
How much down payment do you need for a physician loan? Often as little as 0% down, with many programs offering 0-10% depending on the loan amount.
Do doctor loans have PMI? No. Physician mortgages waive private mortgage insurance even when you put down less than 20%.
Who is eligible for a doctor loan? Most programs accept MD, DO, DDS, DMD, DPM, and OD professionals, including residents, fellows, and attending physicians. A credit score around 700-720+ is typically expected.
Can residents and fellows get a physician mortgage? Yes, usually using a signed employment contract or residency match letter as proof of income, often up to 60-90 days before their start date.
How do doctor loans handle student loan debt? They either exclude student loans from the debt-to-income ratio or use the income-driven (IDR/IBR) monthly payment instead of a percentage of the total balance.
Are doctor loan interest rates higher than conventional rates? Slightly - typically about 0.125% to 0.375% higher, as a trade-off for no PMI and the lower down payment.
Can I use a doctor loan for a second home or investment property? Generally no - doctor loans are for a primary residence. For a rental, a DSCR loan is usually the right tool.
How much can a physician borrow with a doctor loan? Commonly up to around $1M with 0% down, and up to $2M or more with a small down payment.
Thinking about buying? ABS Funding offers doctor loans alongside conventional, FHA, VA, jumbo, and DSCR programs, and can compare a physician loan against a conventional loan side by side for your exact numbers. Call 1-866-666-2378 or get pre-qualified online.
This article is educational and is not financial or lending advice. Loan terms, rates, and eligibility vary by lender and program and are subject to change; contact a licensed loan officer for details specific to your situation. ABS Home Mortgage, Inc., NMLS #209985.