Doctor/Physician Loan vs Conventional Calculator
Physician loans let doctors buy with 0-5% down, no PMI, and student loans treated favorably for DTI. Compare to traditional 20% down conventional to see which preserves more wealth.
| Physician loan amount | — |
| Conventional loan amount (20% down) | — |
| Physician monthly P&I | — |
| Conventional monthly P&I | — |
| Down payment difference | — |
| 10-year investment value of saved down payment | — |
| 10-year extra interest on physician loan | — |
Physician loans (also called doctor mortgages) are specialty products offered by 50+ US lenders to MDs, DOs, dentists, vets, and sometimes pharmacists and attorneys. They allow 0-5% down with no PMI, treat student loans favorably for DTI, and accept employment contracts before the doctor actually starts work. Compare against a traditional 20% down conventional to see whether keeping cash for investment beats the lower interest cost.
Physician Loan Advantages
(1) 0-5% down: huge for residents and early-career attendings who haven't accumulated savings. (2) No PMI ever: lenders waive PMI because doctors have very low default rates. (3) Student loan treatment: physician loans use your income-based repayment (IBR) monthly payment for DTI, not the full balance — critical when you have $300K+ in student debt. (4) Future income recognized: a signed employment contract is accepted as proof of income up to 90 days before you start work. (5) Higher loan limits: jumbo amounts ($1M-$2M+) without jumbo pricing.
When Physician Loan Beats Conventional
The decision hinges on opportunity cost. If you put 20% down on a $700K home ($140K), that money is locked in illiquid home equity. If you invest the $140K in a diversified portfolio at 7% expected return, it grows to $275K in 10 years — far more than the extra interest you pay on a slightly larger physician loan. For early-career doctors, the math almost always favors the physician loan: keep cash liquid for investing, emergency reserves, business opportunities, and lifestyle. Once you've maxed retirement accounts and built reserves, you can recast or make extra principal payments. The physician loan optionality is worth more than the small rate premium.
Last updated May 2026. Sources: CFPB Mortgage Guide.