Cornerstone First Mortgage
Company NMLS #173855
Phone: 216-777-4330
Physician Mortgage Loans: A Strategic Financing Option for Medical Professionals
An overview of DSCR loans and how rental property income is used to qualify without personal earnings.
Physicians face a unique financial path to homeownership. Years of education, delayed peak earnings, and significant student loan balances often make traditional mortgage qualification more difficult than it needs to be. Physician mortgage loans, sometimes called doctor loans, exist specifically to account for those realities.
Rather than relying solely on historical income and rigid debt ratios, these programs are structured to evaluate long-term earning potential and career stability. For many medical professionals, that difference is the key to buying a home earlier with less friction.
What Is a Physician Mortgage Loan?
A physician mortgage loan is a residential loan program designed for licensed medical professionals, including MDs, DOs, residents, fellows, and certain other qualified practitioners. These loans recognize that doctors often graduate with high debt and limited savings, despite having strong future income and job security.
Unlike conventional mortgages that lean heavily on past tax returns, physician loans allow lenders to use signed employment contracts, projected income, and more flexible treatment of student loans when determining eligibility. The underwriting is still thorough, but it is aligned with how physicians actually earn.
Key Features of Physician Loans
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One of the most notable benefits is low or no down payment. Many physician loan programs allow up to 100 percent financing, meaning qualified borrowers may not need to bring a traditional down payment to the table. The program also allows eligible physicians to purchase a home and avoid paying monthly mortgage insurance without putting 20 percent down, which can result in meaningful monthly savings compared to conventional loan options.
Underwriting flexibility is another defining feature. Residents and newly hired physicians may qualify based on a signed employment contract rather than years of income history. In some cases, student loans, especially those in deferment or income-driven plans, are treated more favorably in debt-to-income calculations.
Physician loans also tend to offer higher loan limits than standard conforming mortgages and may be available with both fixed-rate and adjustable-rate options, depending on the program.
Clearing Up Common Misconceptions
Physician loans are not loose or no-documentation products. They still require full verification of income, assets, credit, and employment. The difference is not less underwriting, it is smarter underwriting.
Much like P and L based lending for self-employed borrowers, where lenders evaluate the true financial picture rather than relying strictly on tax returns, physician loans are designed to assess risk in a way that reflects real-world earning patterns. The goal is responsible lending that accounts for profession-specific realities, not shortcuts.
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Who Should Consider a Physician Loan?
Physician mortgage loans are particularly useful for doctors who are early in their careers, carrying large student loan balances, or prioritizing liquidity over a large down payment. They can make sense for buyers who want to purchase a primary residence without draining cash reserves or waiting years to save.
That said, these programs are not always the best fit. Interest rates may be slightly higher than conventional loans, and physician loans are typically limited to primary residences. For investment properties or second homes, other financing options are usually more appropriate.
How to Evaluate Your Options
The right loan choice starts with a clear review of your full financial picture. That includes your credit profile, student loan structure, employment status, and long-term plans. Comparing projected payments with and without PMI, reviewing contract-based income eligibility, and understanding how reserves are calculated all matter.
Working with a loan officer who understands physician-specific programs can help ensure you are comparing the right options and not overlooking better long-term strategies.
Final Thoughts
Physician mortgage loans exist because the traditional mortgage box does not always fit medical professionals. When structured correctly, they can allow doctors to buy sooner, preserve cash, and avoid unnecessary costs without sacrificing responsible underwriting.
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If you are a medical professional looking into home financing, contact Patrick Pisano, Senior Loan Originator, NMLS #383556, for a personalized consultation and tailored loan options.
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Why Choose Conrad Mortgage?
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Conrad Mortgage is based in Strongsville, Ohio, serving medical professionals nationwide with clear underwriting expectations, accurate documentation review, and physician loan options aligned with how doctors actually qualify in today’s market.
Have questions about physician mortgage loans or want to understand which programs you qualify for?
Speak with a licensed loan officer to discuss next steps. →
Written by Patrick Pisano
Senior Loan Originator
Conrad Mortgage
NMLS #383556
02/10/2026
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