I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Self-employed physicians and dentists are a regular part of my practice — the bank statement and P&L approach solves the tax return problem every time. Call (800) 239-1103.
Physicians, dentists, and other healthcare professionals who own their own practices often earn at the highest levels of any profession in California — yet frequently encounter frustrating mortgage denials because their tax returns reflect heavy practice expenses, depreciation, and business deductions.
Why Healthcare Practice Owners Have Mortgage Issues
A dentist with a successful practice may generate $800,000 in annual collections, but after deducting equipment, staff salaries, lab fees, supplies, office lease, and malpractice insurance, the personal net income on their return could be $200,000 or less. A conventional lender qualifies them on that $200,000 — which in California only goes so far at a $2M Bay Area or Marin County home.
Add in S-corp income allocation strategies, retirement plan contributions (SEP-IRA, solo 401k), and accelerated depreciation on equipment, and the qualifying income can drop further still. The tax planning that makes great financial sense actually hurts the mortgage application — unless you use the right program.
Non-QM Solutions for Healthcare Practice Owners
Bank Statement Loan Using Practice Accounts
Lenders average 12 or 24 months of your medical or dental practice bank deposits. The practice revenue is the relevant number — not the personal tax return. With appropriate expense factors applied, most practice owners qualify for significantly more than their tax return income suggests. If you gross $800K in collections and your practice expenses run at 40%, you’re qualifying on roughly $480K — far more useful than the $200K on your Schedule C. See: Bank statement loan details.
P&L Only Loan
Many healthcare practices have regular CPA-prepared P&L statements as part of their business operations. A P&L only loan uses a 12-month profit and loss statement prepared and signed by your CPA instead of tax returns. This is often the cleanest solution for practice owners with strong gross revenue and high deductions. See: P&L loan details.
Physician Loans for W-2 Employed Doctors
If you are not self-employed but a salaried physician or dentist — employed by a hospital, medical group, or practice — a physician loan may be available with no PMI and up to 100% financing. These programs are specifically designed for medical professionals with strong income trajectories and are available from select lenders even with high student loan debt and limited down payment history. Ask about physician loan programs in California.
Loan Amounts Available
Non-QM lenders regularly fund mortgages over $2M for California healthcare professionals. Bay Area, Marin County, and Silicon Valley home prices make jumbo non-QM a necessity for many practice owners purchasing in these markets. The key is having the right income documentation — bank statements, P&L, or a combination — and a lender who knows how to present the file correctly to jumbo non-QM underwriters.
Frequently Asked Questions — Self-Employed Doctor Mortgage California
Can a dentist with an S-corp get a mortgage using practice revenue in California?
Yes — through bank statement or P&L loan programs. On a bank statement loan, the lender averages 12 or 24 months of your practice business account deposits (not your personal account), applies an expense factor (typically 40–50% for dental practices), and uses the result as qualifying income. This bypasses the S-corp W-2 and K-1 entirely. If your practice generates $700,000/year in deposits, qualifying income after a 40% expense factor is $420,000 — far more useful than what appears on your personal return. I’ve done this for numerous California dentists and physicians.
What loan programs work best for California doctors buying in the Bay Area?
It depends on employment status. For self-employed practice owners, bank statement loans or P&L loans work best because they use practice revenue rather than tax return income. For W-2 employed physicians (hospital or group practice employees), physician loan programs offer no-PMI financing up to high loan amounts with favorable treatment of student loan debt. For residents or fellows with strong match contracts and upcoming income, some physician programs will lend on future income commitments. I match the program to the specific income structure — there’s no one-size-fits-all answer for doctors in California.
Do California physician loans allow 100% financing with student loan debt?
Some do. Physician loan programs from select banks and portfolio lenders offer 100% financing (no down payment) for qualifying physicians and dentists, and they treat student loan debt more favorably than conventional programs — using income-based repayment amounts rather than the full 1% of balance that Fannie Mae guidelines require. This is meaningful when a physician carries $250K+ in student loans: conventional programs would add $2,500/month to their DTI calculation, while physician programs may use the actual IBR payment of $200–$400/month. Loan limits vary by lender and location. Call me to check current physician program availability in your target California market.
Related: Self-employed mortgage hub | Bank statement loans | P&L loans
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
