Physician Mortgage vs Conventional Loan: Which Is Right for You?
Side-by-side comparison to help doctors choose the best mortgage option.
Nate Jones · NMLS #304056 · New American Funding
A physician mortgage loan and a conventional mortgage serve the same purpose — buying a home — but they differ significantly in down payment, PMI, and how student debt is treated. For doctors still in training or early career, physician mortgages typically offer a faster path to homeownership. Nate Jones (NMLS #304056) at New American Funding helps physicians compare both options in 48 states.
Key Differences at a Glance
| Feature | Physician Mortgage | Conventional |
|---|---|---|
| Down Payment | 0% | 5-20% |
| PMI | None | Required below 20% |
| Student Debt in DTI | Excluded or reduced | Fully counted |
| Max Loan Amount | $1M-$2M+ at 0% down | $766,550 conforming |
| Eligible Borrowers | MD, DO, DDS, DMD, DPM, OD, NP, PA | Anyone who qualifies |
| Rates | Slightly higher (0.125-0.25%) | Market rate |
When a Physician Mortgage Makes More Sense
- ✓You have significant student loan debt that reduces your conventional qualifying power
- ✓You don't have 20% saved for a down payment
- ✓You're a resident or fellow with a signed employment contract
- ✓You're buying in a high-cost market where conforming limits are too low
- ✓You want to avoid PMI entirely regardless of down payment
When Conventional Might Win
- •You have 20%+ down payment saved and minimal student debt
- •You want the absolute lowest interest rate
- •You're buying below the conforming limit and don't need the higher physician mortgage limits