Let’s compare.

You’ve heard about the physician loan, and you’ve probably read about some of the benefits it offers (no PMI, up to 100% financing)—but how does it compare to other loan programs? The chart below outlines the differences between three loan programs you’re probably considering: the physician loan, an FHA loan and a conventional mortgage.

DOCTOR LOAN FHA LOAN CONVENTIONAL LOAN
PURCHASE PRICE $500,000 $500,000 $500,000
DOWN PAYMENT (%) 0% 3.5% 5%
DOWN PAYMENT ($) $0 $17,500 $25,000
BASE LOAN AMOUNT $500,000 $482,500 $475,000
UPFRONT MORTGAGE INSURANCE $0 $8,444 $0
TOTAL LOAN AMOUNT $500,000 $490,944 $475,000
INTEREST RATE 5.5% 5% 5%
MORTGAGE LENGTH (YEARS) 30 30 30
PAYMENT WITH PRINCIPAL $2,839 $2,635 $2,550
PRIVATE MORTGAGE INSURANCE $0 $255 $218
MONTHLY PAYMENT $2,839 $2,861 $2,768

Some other factors to consider…

WILL YOUR DEFERRED STUDENT LOANS COUNT AGAINST YOU?

Like so many of your fellow physicians, you’ve probably racked up a bit of student loan debt. Unfortunately, traditional mortgages and FHA loans include these loans in your debt-to-income ratio, and can keep you from qualifying for the home loan you need. Depending on your career stage (med student, intern/resident, fellow, attending), the doctor loan program offered by the bankers in our network DON’T count your deferred student loans against you, making the physician home mortgage loan a very attractive option for doctors.

ARE YOU ABLE TO USE YOUR FUTURE INCOME?

Unlike most other loans, the doctor loan allows emerging physicians to use their future income to pre-qualify for a home loan: all that’s needed is an employment contract. Conventional loans require two pay stubs as proof of income and therefore don’t allow physicians to use future income while pre-qualifying. And FHA loans cannot close until the doctor provides a pay stub or other acceptable evidence that they have begun their new job.