What Is a Physician Loan, and What Are Its Terms and Property Restrictions?
A physician loan is a mortgage for doctors and some other professionals that often allows no down payment and no private mortgage insurance. It's generally for a home you'll live in. Some programs accept two- to four-unit homes as long as you live in one unit, and others are limited to single-family homes. Pricing and eligibility vary by lender and depend on your income, credit and employment contract.
Last updated September 29, 2026How is a physician loan different from a conventional loan?
Two features rarely found together in a conventional loan. Many physician loans allow up to 100% financing, so no down payment. And they typically skip private mortgage insurance even with little or nothing down, while a conventional loan generally requires it above 80% loan-to-value. That combination suits newer doctors with strong expected income but limited savings.
What properties qualify?
The home generally has to be your primary residence, not a rental or investment property. Some programs accept a duplex, triplex or fourplex, since one to four units count as residential under standard lending rules, while five or more are commercial. Other programs allow only single-family homes. Check the specific program's property rules before you shop.
Will my rate be higher than a conventional loan?
It can be. Without a down payment or mortgage insurance to protect the lender, some lenders price physician loans a little higher than a comparable conventional loan. Rates move with the market, so there's no fixed gap to quote; the real number comes from a full review of your income, credit and employment contract.
It depends on your situation:
- You have little saved for a down payment: a physician loan may let you buy with none.
- You want to avoid mortgage insurance: physician loans typically don't charge it.
- You're looking at a two- to four-unit home: confirm the program allows it and that you'll live in one unit.
- You can put 20% down: compare a conventional loan too, since it won't need mortgage insurance either.
| Down payment | Often none, up to 100% financing |
|---|---|
| Private mortgage insurance | Typically not required |
| Occupancy | Must be your primary residence |
| Property | Single-family; some programs allow two to four units |
| Pricing | Can be a little higher than conventional |
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Sources
- https://www.pnc.com/insights/personal-finance/borrow/physician-mortgage-loans.html
- https://www.rocketmortgage.com/learn/physician-loans
- https://www.studentloanplanner.com/0-down-mortgage
- https://www.thefinitygroup.com/physician-mortgage-loan
- https://www.physicianbank.com/physician-loan/can-you-use-a-physician-mortgage-to-buy-a-multi-family-property
- https://www.physicianloansusa.com/news/can-physicians-buy-a-multi-unit-property-in-2026
- https://selling-guide.fanniemae.com/sel/b2-3-01/general-property-eligibility
- https://semiretiredmd.com/doctor-loan-finance
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.