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. I’m known as a creative mortgage broker: when a bank says no, I find the lender and the loan structure that can say yes. Call (800) 239-1103.
A physician loan (also called a doctor loan) is a mortgage program for medical professionals that typically allows a small down payment — sometimes none — without private mortgage insurance, and treats student loans and new-job income more flexibly than standard loans. In California, where most physician home purchases are above the conforming loan limit, that combination can be the difference between buying now and waiting years.
Physician loans aren’t a government program. They’re offered by individual banks and portfolio lenders, and every lender sets its own rules. My job is to compare them — and, when you own a practice, to compare them with self-employed options too.
Who Qualifies?
- Usually eligible: MD and DO physicians, including residents and fellows. Many programs also accept dentists (DDS/DMD).
- Sometimes eligible: veterinarians (DVM), optometrists (OD), pharmacists (PharmD), podiatrists (DPM), and at some lenders CRNAs, nurse practitioners or physician assistants.
- Occasionally: a few lenders offer similar “professional” programs for attorneys, CPAs or other licensed professionals.
Eligibility lists change, so I confirm your specific credential with each lender.
Typical Features
| Feature | What many physician programs offer |
|---|---|
| Down payment | Low — often 0–10% up to the lender’s loan-size tiers; larger loans need more down |
| Mortgage insurance | No PMI, even with less than 20% down |
| Loan size | Well above the conforming limit at many lenders; tiers vary by lender |
| Student loans | Flexible treatment of deferred or income-driven payments |
| New job | Signed employment contract or offer letter can be used before your start date (commonly within about 60–90 days) |
| Occupancy | Primary residence only |
| Rate | Fixed or adjustable; pricing varies widely between lenders |
Why Physician Loans Matter in California
In 2026 the conforming loan limit is $832,750 in most of the state and $1,249,125 in high-cost counties such as San Francisco, Marin, San Mateo, Santa Clara, Los Angeles and Orange. Above those limits you’re in jumbo territory, where most lenders want 10–20% or more down and there’s no standard PMI option to bridge the gap. A physician program that allows a low down payment on a jumbo-sized loan without PMI is often the only way a resident or new attending can buy in these markets without years of saving.
That said, a physician loan isn’t automatically the cheapest option. If you have 20% down, a standard jumbo or conforming loan may price better. I quote both.
Student Loans: How They’re Counted
Student loans are often the biggest obstacle for doctors. How the payment is counted depends on the program:
- Fannie Mae conventional: uses the payment on your credit report. If you’re on an income-driven plan with a documented $0 payment, the lender can use $0. If your loans are deferred or in forbearance, the lender uses 1% of the balance or a fully amortizing payment based on the loan terms.
- Physician programs: many exclude loans deferred for a certain period after closing, or use the documented income-driven payment, which can make a big difference in your debt-to-income ratio.
Example: a resident with $300,000 of deferred loans could be charged about $3,000 a month under a 1%-of-balance rule. A program that excludes the deferred loans, or uses a documented income-driven payment, removes most or all of that from the calculation.
Residents, Fellows and New Attendings
- Most programs accept a signed contract or offer letter, so you can close before your first paycheck if your start date is close enough.
- Credit history matters: many programs want solid scores, and thin files (few accounts) can be a hurdle. Start checking early.
- You’ll still need funds for closing costs and, often, some reserves.
Self-Employed Doctors and Dentists
Practice owners face a different problem: tax returns that show far less income than the practice produces after depreciation, equipment, staff, retirement contributions and S-corp salary planning. Options include:
- Physician programs that accept self-employment income — usually with the standard tax-return history.
- Bank statement loans — qualify on 12 or 24 months of practice deposits, with an expense factor applied. See bank statement loans.
- P&L-based loans — qualify on a CPA-prepared profit and loss statement.
- Asset-based qualification for doctors with large investment balances — see asset depletion.
Example: a dental practice with $700,000 of annual deposits and a 50% expense factor qualifies on $350,000 a year — often far more than the personal tax return shows. More in my self-employed mortgage guide.
What You’ll Need
- Medical (or dental, etc.) license, or residency/fellowship documentation
- Signed employment contract or offer letter, or recent pay stubs and W-2s
- Student loan statements showing balances and payment plans
- Two months of bank and asset statements
- Government-issued ID
- For practice owners: tax returns, or bank statements / P&L for non-QM options
Frequently Asked Questions
Can a medical resident get a physician loan in California?
Yes. Many physician programs are designed for residents and fellows, accept a contract or offer letter in place of pay stubs, and treat deferred or income-driven student loans more flexibly than standard programs. Terms vary by lender.
Do physician loans require PMI?
Physician loan programs typically do not charge private mortgage insurance, even with less than 20% down. The trade-off can be a somewhat higher rate than a comparable loan with a larger down payment.
How large a physician loan can I get in the Bay Area?
Many programs go well above the 2026 conforming limit of $1,249,125 in Bay Area counties, with loan-size tiers that require larger down payments as the loan grows. Maximums vary by lender.
How are student loans counted?
It depends on the program. Fannie Mae allows a documented $0 income-driven payment, but uses 1% of the balance or a fully amortizing payment for deferred loans. Many physician programs exclude loans deferred for a period after closing or use the documented income-driven payment.
Can self-employed doctors use a physician loan?
Some programs accept self-employed physicians with standard tax-return documentation. If your returns understate your income, a bank statement or P&L loan may qualify you for more.
Related Resources
- Jumbo Loans in California
- Self-Employed Mortgages
- Bank Statement Loans
- RSU and Equity Compensation Mortgages
- Debt-to-Income Ratio Explained
- 2026 Conforming Loan Limits
- Home Loans for Teachers
Official Sources & References
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
