What Is a Physician Loan, and What Are Its Terms and Property Restrictions?
A physician loan is a mortgage program built for doctors and other qualifying professionals that typically requires no down payment and no private mortgage insurance (PMI), and it generally must be used to buy or refinance an owner-occupied home with up to four units. Exact pricing and eligibility still vary by lender and depend on your income, credit, and employment contract.
Last updated July 22, 2026What makes a physician loan different from a conventional loan?
Physician loan programs are built around two features that don't usually appear together in a conventional loan. First, many physician loans allow up to 100% financing, meaning no down payment is required. Second, they typically skip private mortgage insurance (PMI) even when the borrower brings less than 20% down or nothing at all. Conventional loans, by contrast, generally require PMI once the loan balance goes above 80% of the home's value. This combination can make physician loans attractive for newer doctors who have strong future income but haven't built up savings or a long credit history yet.
What properties qualify for a physician loan?
Physician loans typically require the home to be owner-occupied, meaning it's the borrower's primary residence, not a rental or investment property. Within that rule, many physician loan programs are more flexible than people expect about the type of home that qualifies. A property with up to four units, such as a duplex, triplex, or fourplex, generally still counts as "residential" the same way a single-family home does. This follows the standard industry line between residential (1 to 4 units) and commercial (5 or more units) property. That makes some physician loan programs more permissive than lenders that restrict the program to single-family homes only. Multi-unit eligibility still depends on your situation, since it varies from one lender's program to the next.
Will my rate be higher than a conventional loan?
Possibly. Because physician loans skip the down payment and PMI requirements that protect conventional lenders from risk, many lenders commonly price physician loans a bit higher than a standard conventional loan to help offset that added risk. Overall mortgage rates move with the broader market and shift often, so there is no fixed spread to quote here, but physician loan pricing tends to land at the higher end of whatever the prevailing market range is, or a bit above it, depending on the lender and your file. The only way to get an exact rate is a full review of your income, credit, and employment contract details, so treat any number you see online as a starting point, not a quote.
| Down payment | Often $0 required (up to 100% financing) |
|---|---|
| PMI | Typically not required, even below 20% down |
| Occupancy | Must be owner-occupied (primary residence) |
| Property size | Up to 4 units can count as residential (duplex, triplex, fourplex) |
| Pricing | Commonly a bit higher than conventional; final rate depends on your file |
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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
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.