Doctor loans exist because banks have noticed physicians almost never default. That makes the product genuinely good - and still worth checking against the alternatives before you sign.
A physician mortgage (or "doctor loan") is a portfolio product banks offer MDs, DOs, dentists, and often residents: little or nothing down, no private mortgage insurance, and underwriting that doesn't panic at $200,000 of student debt. For a new attending with a signed contract and no savings yet, it solves a real problem. It is also a product, sold with enthusiasm, so the math deserves a look.
The trade is usually a modestly higher rate - commonly an eighth to half a percentage point over a comparable conventional loan - and a product menu that leans on adjustable-rate structures at some banks. Pricing varies more between physician-loan lenders than between physician and conventional products at the same bank, which is why getting three or more quotes matters more than the label on the loan.
The honest comparison is not "physician loan vs nothing," it is physician loan with 0% down vs conventional with 20% down vs renting. Two questions decide it:
1. What does the down payment earn elsewhere? Putting $120,000 down on a $600,000 house "earns" the PMI you avoid plus the interest on a smaller balance. Keeping it invested, paying down 7% student loans, or funding retirement accounts may earn more - especially in your first attending years when every tax-advantaged dollar compounds for decades.
2. What is the all-in monthly cost? Price principal, interest, taxes, insurance, and maintenance (budget ~1-2% of home value per year), then hold the total near or under 28% of gross income. Physician-loan approval limits routinely exceed what is comfortable on one income with daycare and disability premiums in the picture.
Skip it - and usually skip buying - when the time horizon is short. Selling a house costs roughly 8-10% round trip in commissions, transfer costs, and make-ready repairs, which typically swamps appreciation over a residency-length stay. Skip it when you already have 20% down and equal rate offers, since conventional pricing then wins outright. And consider waiting 6-12 months into your first attending job: you will know your real spending baseline, your partnership trajectory, and whether the job sticks - the leading cause of physician real estate losses is buying for a job that didn't last.
Model the house before you buy it
The Real Estate module compares physician mortgage vs conventional vs renting using your income, debt, and city - with the 28% rule built in.
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