Do Physician Loans Require a Down Payment or Private Mortgage Insurance (PMI)?
Most physician loans do not require a traditional down payment, and many waive private mortgage insurance (PMI), making it easier for doctors to buy a home without tying up cash upfront. However, requirements can vary by lender and physician experience level.
Buying a home as a physician often comes during a demanding period of training or early practice. Residents and fellows may have high student debt but limited savings, while early-career doctors may be relocating frequently or planning for long shifts in a new city.
The decision point here is straightforward: how much money do you need upfront, and will you be required to pay for PMI? These factors affect cash flow, your ability to invest elsewhere, and even your choice of location. Understanding how physician loans handle down payments and PMI can clarify whether buying now makes sense or waiting is smarter.
How Do Physician Loans Handle Down Payments?
Unlike conventional mortgages that typically require 20% down to avoid PMI, physician loans often allow 0–10% down. Lenders recognize that physicians have high earning potential even if they are early in their careers. This reduced down payment can help:
Preserve cash for relocation, furnishings, or emergency funds
Make homeownership more accessible during residency or fellowship
Allow physicians to buy sooner in competitive housing markets
Do Physician Loans Require Private Mortgage Insurance (PMI)?
Most physician loans waive PMI, even with little or no down payment. Normally, PMI protects lenders when buyers put less than 20% down, but physician loans rely on future earning potential instead.
Benefit: Saves hundreds or thousands annually that would normally go to PMI
Consideration: Not all lenders waive PMI automatically, some may require a small fee for residents or those early in their practice
Why This Matters for Physicians
Income trajectory: Physicians typically see rapid income growth after residency, improving their ability to handle mortgage payments
Job stability: Long-term hospital or practice employment reduces risk for lenders, justifying lower down payments
Flexibility: With no PMI and low down, physicians can buy closer to work, reduce commuting, and invest in personal or professional priorities
FAQs About Homeownership for Physicians
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Yes — many lenders offer 0% down options to residents and fellows, depending on anticipated income and training program.
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Usually not. Physician loans often waive PMI without charging a higher rate, though it varies by lender.
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While down payments may be minimal, you should plan for closing costs, inspections, and moving expenses.
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