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Physician Mortgage Loans – Good or Bad?

The choice of a home loan is a highly subjective decision. There are so many variables in each household – number of incomes, number of dependents, possibility for more dependents (i.e. having a kid in residency), amount of savings, access to assistance from family, eligibility for specialty loan programs, etc.

Physician loans are loans where the bank will not take your student loan debt into account and they will use your residency contract as proof of employment. They often come with little to no down payment and no Private Mortgage Insurance (PMI).

If you do a quick search regarding Physician Mortgages, you will find strong feelings on both sides of the question as to whether they are good. I can only say this: we used a physician loan both when we moved to residency and when we bought our first house after residency. Both times it proved to be a good decision.

Remember this – you will most likely need to sell or re-finance in 5 – 7 years with a physician loan. So take into account what will come after residency.

Also remember, the less money you put down on the home when you buy it, the greater risk you have of a financial hurdle to selling in 3-5 years when you finish residency.


This site explains everything you need to know (twice). He is a Financial Advisor and this site of his is directed toward medical residents:

This site discusses some of your various Physician Loan options:

The AMA discussion on Physician Loans: