Physician Loan vs Conventional Comparison
Compare physician doctor loan (0-5% down, no PMI, deferred student loans) vs conventional 20% down for doctors and dentists in 2026.
| Cash Required — Physician Loan (3% down) | — |
| Cash Required — Conventional (20% down) | — |
| Cash Difference (Investable) | — |
| Annual Return on Cash Difference | — |
| Physician Loan Monthly (no PMI, 6.875%) | — |
| Conv Monthly (no PMI, 6.5%) | — |
Compare physician doctor loan (0-5% down, no PMI, deferred student loans) vs conventional 20% down for doctors and dentists in 2026. Cite official methodology in your communications — sources linked below.
How the Calculation Works
Physician (doctor) loans allow medical professionals to buy with 0-5% down, no PMI, and student loan debt excluded from DTI calculation. Available to MDs, DOs, dentists, podiatrists, and (some lenders) PharmDs. Rate premium ~0.25-0.5% above conventional. Source: AMA Insurance, BofA, TD Bank physician loan programs.
Benchmarks and Use Cases
Major physician loan lenders: BofA, TD Bank, SunTrust, US Bank, Citi, KeyBank, Truist. Loan limits typically up to $1-2M with 0% down. Rate spread vs conventional: 0.25-0.625% (varies by lender + market). DTI excludes income-driven repayment student loan payment if low.
Common Mistakes and Limitations
Common mistakes: (1) Choosing physician loan when conventional 20% down is feasible — usually conventional is cheaper. (2) Not shopping multiple physician lenders — terms vary widely. (3) Combining 0% down with low salary residency income — payment may strain budget. (4) Forgetting to refinance to conventional after attending salary kicks in.
Last updated May 2026. Sources: CFPB, AMA Insurance.