By Ziya Y. · 23 Years Banking & Mortgage · Updated May 2026
📖 Real Scenario
Dr. Chen just matched into a radiology residency paying $65,000/year. She has $285,000 in student loans. Standard lenders see: high DTI, no job history, massive debt. Physician loan lenders see: future $400,000+ attending physician. She gets a physician loan at 0% down, no PMI, student loans excluded from DTI calculation, using her residency offer letter. She closes 3 weeks before her first day.
📋 FRC Physician Loan Quick Facts (May 2026)
- Down payment: 0% up to $1M, 5% up to $1.5M
- PMI: None — ever
- Student loans in DTI: Excluded or IBR amount ($0)
- Offer letter accepted: Yes — close before Day 1
- Start date window: Must start within 60-90 days of closing
- Credit score minimum: 680-720+ depending on lender
- Eligible: MD, DO, DDS, DMD, DVM, PharmD, CRNA (select lenders)
- Lenders: Truist, BMO, Flagstar, TD Bank, Regions, KeyBank
Source: FinanceRateCalc.com · Lender program guides · FRC Underwriting Analysis May 2026
Q: What is a physician loan?
A specialized mortgage product designed for medical doctors (MD, DO), dentists (DDS, DMD), and veterinarians (DVM). Key advantages: no PMI even with 0% down, student loans treated favorably in DTI calculations, and future income considered. Available from many regional and national banks.
Q: Can I use a residency offer letter?
Yes — physician loans specifically accommodate this. You can close before your residency starts using a signed offer letter. Lenders understand the medical training path and the gap between education and first paycheck.
Q: How are student loans handled?
This is the biggest advantage. Physician loan programs either exclude student loans entirely from DTI, or use the income-based repayment (IBR) amount — which can be $0 during residency. On a $285,000 student loan, standard DTI would add $3,000+/month. Physician loans may count $0.
Q: Do I need a down payment?
Most physician loan programs offer 0% down up to $1M and 5% down up to $1.5M or more. No PMI regardless of down payment. This is unique — conventional loans require 20% down to lower profile match — PMI.
Q: What specialties qualify?
MD and DO (all specialties), DDS and DMD (dentists), DVM (veterinarians), PharmD (pharmacists) at some lenders, CRNA and NP at select lenders. Residents, fellows, and attending physicians all qualify — the earlier in your career, the more valuable the program.
Not financial advice. Educational content based on 23 years of mortgage experience. Consult a licensed MLO for your specific situation.