What Down Payment Is Required for Physicians, Can It Really Be 0–10%?
For most physicians, a down payment of 0–10% is not only possible, it’s common, especially when using a physician mortgage loan. Many doctors qualify for 100% financing or low down payment options without private mortgage insurance (PMI), depending on purchase price, credit profile, and lender guidelines.
Why This Question Matters So Much for Physicians
After medical school, residency, and years of delayed earnings, many physicians are financially strong on paper but cash-light in reality. Between:
Student loan balances
Relocation costs
Licensing and board fees
Insurance expenses
Building emergency savings
Saving a traditional 20% down payment can feel unrealistic.
The good news? The “20% down” rule is largely a myth, especially for doctors.
Let’s break down what’s actually required.
Do Physicians Really Need 20% Down to Buy a Home?
No. The 20% down payment standard is not a lending requirement, it’s primarily tied to avoiding PMI.
Here’s what most buyers (including physicians) actually see:
Conventional loans: often 3–5% down
FHA loans: as low as 3.5% down
Physician loan programs: often 0–10% down
The difference is that physician-specific programs are designed around your income trajectory, not just your current balance sheet.
Why Are Physicians Treated Differently by Mortgage Lenders?
Lenders consider physicians lower-risk borrowers because of:
High lifetime earning potential
Stable employment
Advanced professional credentials
Historically low default rates
Even with significant student loan debt, lenders understand that physicians typically experience rapid income growth after training.
Because of this, many banks offer physician mortgage programs tailored to early-career doctors especially residents, fellows, and new attendings.
Can a Down Payment Actually Be 0%?
Yes — in many cases.
Physician loan structures often look like this:
0% down up to a certain loan amount
5% down for mid-range home prices
10% down for higher-value properties
Exact requirements depend on:
Purchase price
Credit score
Debt-to-income ratio
Signed employment contract
Property location
Lender guidelines
Some programs offer full financing up to specific limits, with stepped requirements beyond that.
What Happens If Physicians Put Less Than 20% Down?
Normally, putting less than 20% down triggers private mortgage insurance (PMI) an added monthly cost protecting the lender.
Here’s where physician loans stand out:
👉 Many physician mortgage programs do not require PMI, even with 0–10% down.
Instead of charging PMI, lenders account for risk through underwriting models or slightly adjusted interest rates.
For physicians, this can mean:
Preserving liquidity
Avoiding hundreds in monthly PMI
Saving thousands annually
Why Would a Physician Choose a Low Down Payment on Purpose?
A low down payment isn’t just about affordability, it can be strategic.
1. Does Preserving Cash Flow Matter More Early in a Medical Career?
Often, yes.
Early-career physicians face:
Student loan repayment
Moving expenses
Delayed retirement investing
Practice setup costs
Maintaining liquidity provides flexibility during career transitions.
2. Is It Better to Invest Instead of Putting 20% Down?
Sometimes.
Capital tied up in home equity is illiquid. Some physicians prefer to:
Max out retirement accounts
Build brokerage investments
Maintain emergency reserves
Pay down higher-interest debt
Depending on your financial strategy, a smaller down payment may align better with long-term goals.
3. Does Waiting to Save 20% Delay Wealth Building?
It can.
Home prices and interest rates fluctuate. Waiting years to save 20% could mean:
Higher future purchase prices
Less favorable rates
Delayed equity building
Physician loan programs allow doctors to buy based on career readiness, not just savings milestones.
When Does It Make Sense for Physicians to Put More Than 10% Down?
There are scenarios where a larger down payment is beneficial:
You want a lower monthly payment
You’re purchasing a high-priced property
You prefer conservative leverage
You want stronger interest rate options
You plan to stay long-term
A higher down payment reduces:
Loan size
Total interest paid
Overall financial risk
The right approach depends on your comfort level with leverage and long-term plans.
What Do Lenders Evaluate Besides the Down Payment?
Even with flexible physician programs, lenders assess:
Credit score
Debt-to-income ratio
Employment contract
Specialty and income trajectory
Cash reserves
Many physicians can qualify using a signed attending contract even before their first paycheck. Some residents and fellows may also qualify based on future income.
Is There a “Right” Down Payment for Physicians?
There is no universal answer.
The best down payment is the one aligned with:
Your career stage
Risk tolerance
Investment strategy
Family needs
Geographic stability
For many physicians, 0–10% is realistic and strategic but it should fit within a broader financial plan.
FAQs About Homeownership for Physicians
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Yes. Many physician mortgage programs offer 100% financing up to certain loan limits, depending on credit and employment qualifications.
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Many do not require PMI, even with less than 20% down. This is a major advantage compared to conventional loans.
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Often, yes. Some lenders will consider a signed employment contract or projected income.
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