Financing Resources
Physician home loans, explained plainly
Physician home loans are specialized mortgage programs built for doctors. The headline benefit is simple: qualified physicians can finance 100% of a purchase up to a $1 million loan amount with no private mortgage insurance, often with better terms than a conventional loan would offer. This page walks through what these loans do, who qualifies, the credit requirements, and the fine print, so you know exactly what to ask for when you apply.
The basics
What makes a physician loan different
Most home loans ask for a down payment, typically 3% to 20% of the purchase price, and most loans with a small down payment carry private mortgage insurance until you build equity. Physician loans were created to remove both hurdles for a group that often has a strong income, a demanding schedule, and a heavy student loan balance all at once.
The trade-off is a tighter eligibility box. These programs are reserved for licensed physicians, and they are restricted to the primary home you live in. If you fit the profile, the practical result can be a full-price purchase with no down payment, no PMI, and a student loan payment that does not cap your buying power the way it would on a conventional loan.
The list below spells out each benefit exactly as the programs work, and the fine print at the bottom of the page says the rest out loud. Nothing here is a commitment to lend; every approval still comes through underwriting and credit review.
The benefits
What a physician loan can do for you
Six ways the program is built differently from a conventional mortgage, starting with the part that surprises most physicians.
100% financing, up to $1 million
Qualified physicians can finance the full purchase price, with no down payment required, up to a $1 million loan amount. That keeps more of your cash in the bank at closing, which matters when you are also funding a move.
No private mortgage insurance
Because a physician loan does not require the down payment a conventional loan would, the private mortgage insurance (PMI) requirement is eliminated. That is real money saved in every monthly payment.
A 0.25% rate discount with auto-pay
Set your mortgage payment to auto-deduct from a checking or savings account and you can qualify for a reduced interest rate of one quarter percent, or 0.25%. The account and the auto-debit must be in place and documented on or before closing.
Student loans may not count against you
Your student loan debt may be excluded from your loan ratios when regulatory guidelines are met. For physicians carrying six-figure student balances, that can meaningfully raise the size of the loan you qualify for.
Adjustable rate mortgage options
An adjustable rate mortgage (ARM) is available for physicians who want a lower starting rate, a shorter time in the home, or the flexibility that an ARM can bring.
For the home you actually live in
These programs are restricted to primary, owner-occupied residences only. They are built for the house you live in, not for investment or second properties.
Eligibility
Do you qualify?
Three employment paths qualify, and they cover most physicians in practice. One extra note below answers the most common specialty question. In every case you must still meet the program's underwriting requirements, including income and asset documentation, just like any other mortgage.
Employed by a hospital or physician group
Licensed physicians employed by a hospital or a physician group qualify for these programs.
Self-employed for at least 2 years
Physicians who are self-employed for at least 2 years are eligible, so private practice owners can use the program too.
Teaching at a medical school or institution
Physicians teaching at a medical school or institution qualify, which covers many academic and research roles.
Psychiatrists qualify too
Psychiatrists are eligible for these programs when they are licensed MDs. If you hold an MD, the specialty does not stand in your way.
Still unsure if you qualify? Bring your situation to the conversation: your employment, your years in practice, and your student loan picture. Teri can help you figure out which lender questions to ask, without the runaround.
Credit requirements
The score you need, by loan size
The credit requirement scales with the loan amount. Two numbers cover the whole program.
700+
Credit score · up to $650,000
For loan amounts up to $650,000, a credit score of at least 700 is required.
720+
Credit score · up to $1,000,000
For loan amounts up to $1 million, a credit score of at least 720 is required.
If your score is not there yet, a few months of on-time payments and lower balances often close the gap. Teri can talk you through the timeline that makes sense for your move.
The fine print
The fine print, out loud
Good programs are only as good as the terms you can live with. Here is everything the fine print says, stated plainly so there are no surprises at the kitchen table.
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Loans are subject to credit approval.
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Additional fees and charges may apply.
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Restricted to primary, owner-occupied residences only.
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Additional restrictions may apply.
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Rates and program subject to change without notice.
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This information is not a credit decision or a commitment to lend.
How this fits your move
Financing and the house hunt, in step
Physician loan programs are not offered by every lender, and the details vary from one lender to the next. When you are ready to buy in Peoria and Central Illinois, Teri can connect you with lenders who offer physician programs, help you compare what each one means for your monthly payment, and make sure the home you choose works with the financing you want. Bring your first conversation to her and she will keep the loan questions and the house hunt moving together.
Your Move Matters
Physician buyers deserve a straight answer on financing
Teri works with physicians moving into Peoria and Central Illinois, and she will connect you with lenders who offer physician loan programs, then keep the numbers honest through closing. One conversation gets you a clear next step.