Jumbo, Construction, Physician Loans
A physician loan for residents lets you purchase a home during residency using your signed employment contract — not your current resident salary — so high student debt and low current income don’t disqualify you. As a Senior Mortgage Banker at BMO Bank (NMLS #235295) with over 20 years of experience, I’ve helped residents and fellows structure physician loans that close smoothly, often 60 to 90 days before their first day on the job. This page explains exactly how these programs work, what residents qualify for, and how to decide whether buying now makes sense for your situation.
Physician loans for residents use your future attending income — documented through a signed employment contract or offer letter — rather than your current resident stipend to determine how much you can borrow. This is the single most important distinction between a physician loan and a conventional mortgage for someone in training. Standard mortgage underwriting looks at two years of employment history and current income; physician loan programs are built around the reality that your earning trajectory is the relevant number, not what you make today.
Key mechanics residents should know:
A physician mortgage does not require a 20% down payment to avoid PMI because lenders view medical professionals as low default risk relative to income trajectory, not current balance sheet. According to the Federal Housing Finance Agency, the 2026 conforming loan limit is $806,500 — physician loans extend well beyond that into jumbo territory without PMI.
Residents and fellows in MD, DO, DDS, DMD, or DVM programs qualify for physician loan programs at most lenders, including those currently in active training — not just those about to start an attending position. The core qualification criteria are consistent across most programs:
| Requirement | Typical Threshold |
|---|---|
| Degree | MD, DO, DDS, DMD, DVM (resident/fellow level) |
| Credit score | 700 minimum (some lenders accept 680+) |
| Employment documentation | Signed contract, offer letter, or match letter |
| Down payment | 0–5% for loans up to $1M; 5–10% up to $1.75M |
| Student loans | Deferred loans often excluded from DTI |
| Property type | Primary residence only (no investment properties) |
Residents who have completed their match but haven’t yet signed a contract may use their match letter as preliminary documentation in some programs. The closing date typically must fall within 90 days of the employment start date. If you are a fellow planning to transition to an attending role, you can use your fellowship contract to qualify and then refinance once your attending salary begins.
The right loan structure for a resident depends almost entirely on how long you plan to stay in the home. This is one of the most overlooked decisions in physician loan planning, and the answer is different for a 3-year residency versus a 5-year residency.
If your residency is 3 years or fewer: A 5/1 or 7/1 ARM typically makes sense. Rates on 5/6 or 7/6 ARMs are consistently lower than 30-year fixed rates — on a $500,000 loan, that spread can represent $200 to $400 per month in savings during the fixed period. If you plan to sell or refinance before the ARM adjusts, you never experience rate risk. Many surgery and internal medicine residents fall into this category.
If your residency is 4–5+ years, or you intend to stay in the home after training: A 30-year fixed eliminates rate uncertainty entirely. For residents entering a long program or planning to remain in the same metro area for fellowship and into attending practice, the predictability of a fixed payment is often worth the slightly higher starting rate.
Fellowship relocation risk: If there’s a meaningful chance you match into fellowship at a different institution in 2–3 years, consider the cost of selling early — realtor fees, closing costs, and whether the home has appreciated enough to cover those costs. In markets like Scottsdale where home values have remained strong, this risk is lower, but it’s worth modeling before you commit.
The practical timeline for a resident buying a home runs roughly as follows — and understanding this prevents the most common delay, which is starting too late:
The critical variable is having your employment contract signed. Some programs accept a match letter plus a verbal offer for pre-approval, but the final underwriting typically requires the signed contract. Do not wait for the contract to start the pre-approval conversation — that delay costs weeks.
Buying during residency makes the most financial sense when you plan to stay in the same metro area for at least 3 years — either completing your full residency there, or transitioning to fellowship or attending practice in the same city. Renting is the smarter choice when your timeline is short, your match specialty commonly leads to fellowship relocation (radiology, cardiology, and many surgical sub-specialties, for example), or when current home prices in your city have outpaced reasonable purchase-to-rent ratios.
A straightforward framework:
One factor most residents underestimate: every month of rent is money that builds no equity. In Scottsdale and the broader Phoenix metro, where home values have appreciated consistently, residents who bought at the start of their 3-year program in 2022–2023 built meaningful equity by the time they transitioned to attending roles. That’s a head start on net worth that compound over a career.
Yes. Most physician loan programs accept medical residents using their current residency contract or employment agreement with the training program. You do not need an attending offer letter to qualify during residency — your residency appointment documentation is sufficient at many lenders, including the BMO physician loan program.
Most programs allow up to $1,000,000 with 0% down, up to $1,500,000 with 5% down, and up to $2,000,000 with 10% down. The exact limits depend on the lender, your credit score, and income documentation. A 720+ credit score typically unlocks the most favorable terms.
In most physician loan programs, student loans that are deferred for at least 12 months are excluded from your debt-to-income (DTI) calculation entirely. Income-driven repayment (IDR) monthly payments are typically counted at the actual IDR payment amount rather than the standard amortized payment — which significantly improves your qualifying DTI.
Yes. Ryan Lehrman at BMO Bank (NMLS #235295) is licensed in Arizona and has structured physician loans specifically for residents and fellows relocating to the Phoenix and Scottsdale metro area. You can apply before your start date and close up to 90 days in advance.
Most physician loan programs require a minimum credit score of 700. Some lenders will work with scores in the high 600s, but the most favorable terms — 0% down, highest loan limits — typically require 720+. If your score is below 700, it's worth a brief conversation to review your credit profile before applying.
Call (480) 221-3781 for a no-pressure consultation — I’ll walk through your program timeline, employment contract status, and financing options in one conversation.
Same-day response. I work with residents and fellows nationwide through BMO Bank’s physician loan program.