PHYSICIAN MORTGAGE LOANS IN CALIFORNIA — ZERO DOWN PAYMENT | NO PMI | UP TO $2M | DTI UP TO 45-50%

What Is a Physician Mortgage Loan?

A physician mortgage loan is a specialized home loan program built for doctors, dentists, and medical professionals in California. The headline benefit: zero down payment financing up to $2 million with no private mortgage insurance (PMI) — something no conventional mortgage can match.

In California, where the median home price exceeds $900,000 and most metro areas require jumbo financing, a conventional lender wants 20% down to waive PMI — that’s $180,000+ in cash. After a decade of medical training and $200,000-$400,000 in student debt, most physicians, residents, and interns simply don’t have that. We offer physician mortgage loans specifically to eliminate this barrier.

What makes this program different from every other loan option:

• Zero down payment up to $1.5M (or $2M with 720+ credit)
• No PMI at any loan-to-value ratio, saving $500-$2,000+/month
• Qualify on projected income from an employment contract or offer letter, so you can buy before starting your position
• Student loan payments excluded from DTI for residents and fellows qualifying on current income
• DTI ratios up to 45-50% to accommodate student loan debt
• First-time homebuyer friendly with no restrictions

Unlike the national “best doctor loan lender” lists you’ll find online, we’re a California mortgage broker who shops multiple physician mortgage lenders on your behalf. You get the best doctor financing available without submitting applications to a dozen different banks.

Who Qualifies for Our Physician Mortgage Program?

At least one borrower whose income is used to qualify must hold an eligible medical professional designation. The program covers a wide range of medical careers beyond just MDs:

Medical residents, fellows, and interns who hold one of the above degrees qualify with their training employment contract. You do not need to be board-certified or fully licensed to apply. Holding the degree and having an active employment contract (or verification of employment acceptance) is sufficient.

Citizenship and Residency Status

• U.S. Citizens: Fully eligible for all financing tiers
• Permanent Resident Aliens: Fully eligible for all financing tiers
• Non-Permanent Resident Aliens: Eligible at a maximum of 95% LTV (5% minimum down payment) with an eligible visa type including H1B, H2B, E1, L1, and G Series visas

Not eligible: Chiropractors, DACA recipients, ITIN holders, foreign nationals without an eligible visa, and borrowers with diplomatic immunity.

Non-occupant co-borrowers and co-signers are permitted, but their income must be 50% or less of total qualifying income.

Our Zero Down Payment Physician Mortgage Options

Physician mortgage loans offer three financing tiers, all with zero PMI. The headline feature is 100% financing: you can purchase a California home with absolutely nothing down.

Important program details:

• 100% financing (zero down) allows a maximum DTI of 45%. At 95% LTV (5% down), DTI extends to 50% on 30-year fixed products
• ARM and 15-year fixed products have a maximum DTI of 45% at all LTV tiers
• Minimum LTV is 90.01%. This program is specifically designed for low and zero down payment purchases
• No secondary financing allowed (no piggyback loans)
• Escrow/impound accounts required
• Minimum loan amount: $100,000 (fixed-rate) or $350,000 (ARM)

Fixed-Rate and ARM Options

ARM products use the 30-day average SOFR index with a 3.50% margin. The 5/6 ARM has 2/1/5 caps, while the 7/6 and 10/6 ARMs have 5/1/5 caps. All ARM products are assumable, which can be a selling advantage when you decide to move.

Physician Mortgage vs. Conventional Loan

The biggest differences come down to down payment, PMI, and how student debt is treated. Here’s a side-by-side comparison:

How Much Does Our Physician Mortgage Program Save?

On a $1,000,000 California home, a physician mortgage loan saves you $98,000-$122,000 compared to conventional financing. That’s not a typo. Here’s the math:

Conventional loan at 95% LTV:

• Down payment: $50,000
• PMI: ~$800-$1,200/month until you reach 80% LTV
• PMI cost over 5 years: ~$48,000-$72,000

Physician mortgage at 100% LTV:

• Down payment: $0
• PMI: $0
• Total savings: $50,000 down payment + $48,000-$72,000 in PMI = $98,000-$122,000

Even if the physician mortgage rate is 0.25% higher than a conventional rate, the PMI elimination and zero down payment create substantial net savings for most doctors. And that $50,000-$200,000 you didn’t put toward a down payment? It stays in your savings for emergencies, practice investment, or student loan payoff.

No Money Down Doctor Loans for Residents and Interns

Medical residents and interns are exactly who this program was built for: borrowers with $0 saved for a down payment, six figures of student debt, and massive future earning potential. No other mortgage program in the country lets you buy a home under these conditions. Physician mortgage loans do.

After 4+ years of medical school, you’re starting training with significant debt and a modest salary. According to AAMC data, 70% of medical school graduates carry student loan debt, and the numbers are substantial:

23% of medical school graduates owe $300,000 or more. You’ve spent years accumulating this debt instead of saving for a down payment. A 20% down payment on a $900,000 California home is $180,000. Even 5% down is $45,000. You don’t have that. Physician mortgage loans eliminate this barrier completely with $0 down and no PMI.

Qualify on Your Future Salary, Not Just Your Current One

This is the feature that changes everything for residents and new physicians. Physician mortgage loans allow you to qualify based on projected income from an employment contract or offer letter, not just what you’re currently earning.

What this means in practice:

• PGY-1 intern who just matched: You can qualify using your upcoming residency salary before you’ve earned a single paycheck
• Resident finishing training: If you’ve signed an attending offer at $350,000, you can qualify based on that $350,000 salary, not your current $90,000-$95,000 resident salary
• New hire at any stage: Accepted an offer at a new hospital or practice? That offer letter is your qualifying income

The employment contract or offer letter must include your position, start date, and compensation. Your start date must be within 150 days of the loan closing date. Only fixed base salary counts (not projected bonuses). If you’re qualifying on projected income before you’ve started working, you’ll need additional reserves to cover the months between your first mortgage payment and your employment start date.

This is why physician mortgage loans are fundamentally different from conventional financing. A conventional lender looks at your last two pay stubs. A physician mortgage lender looks at your signed employment contract and sees your future.

Student Loan Payments Can Be Excluded from DTI

For residents and fellows qualifying on their current training income, student loan payments in deferment, forbearance, or IBR can be completely excluded from your debt-to-income ratio. Not reduced. Not calculated at a lower rate. Excluded entirely.

This exclusion applies when:

• You are currently in residency or a medical clinical fellowship program
• You are qualifying based on your current residency/fellowship income (not projected income)
• Your student loans are in deferment, forbearance, or reporting $0 under an income-based repayment plan

Here’s what that looks like compared to a conventional lender:

A conventional lender sees $250,000 in student debt and calculates $2,500/month against your income, which effectively disqualifies you from buying a home. A physician mortgage lender excludes those loans entirely for qualifying residents, leaving your full DTI available for your mortgage payment.

For physicians who are NOT in residency/fellowship, or who are qualifying on projected income, student loans are still treated favorably: the actual IBR payment amount is used (typically $342-$576/month for a resident-level income) rather than the conventional 1% of balance calculation.

California Resident Salaries by Training Year

California medical residents earn significantly more than the national average due to the state’s higher cost of living and union-negotiated contracts. Here’s what major California programs pay:

Salary data from institutional GME websites, effective 2025-2026. Many programs also provide housing stipends, meal allowances, and educational stipends on top of base salary.

California residents earn approximately $20,000-$40,000 more than the national average, which helps with physician mortgage qualification. With a PGY-1 salary of $90,000-$97,000 and student loans potentially excluded from DTI, California residents can qualify for substantial loan amounts.

Buying vs. Renting During Residency

In many California markets, the monthly mortgage payment on a physician mortgage is comparable to what you’d pay in rent. The difference is that with a mortgage, you’re building equity and locking in your housing cost for the duration of your 3-7 year training program.

For residents at programs like UCSF, UCLA, Stanford, UC San Diego, UC Davis, Loma Linda, or Cedars-Sinai, renting a comparable home near the hospital often costs $3,000-$5,000+ per month. A physician mortgage puts that money toward ownership instead. California home prices have historically appreciated 5-8% annually, so a home purchased at the start of residency often gains significant value by the time you complete training.

If you’re looking at other zero down payment options in California, physician mortgage loans are the only program that offers 100% financing up to $1.5M-$2M without PMI. VA loans offer zero down but require military service. USDA loans are limited to rural areas. Nothing else comes close for medical professionals.

What Happens After Residency?

If you relocate after training, you have options. You can sell the home (likely at a profit after several years of California appreciation), refinance into a conventional loan if you want to keep it, or stay in the area and keep your physician mortgage in place. Physician mortgages require primary residence occupancy, so renting it out as an investment property would require refinancing into a different loan type first.

Dentist Mortgage Loans in California

Dentists with a DDS or DMD degree qualify for the same zero down payment physician mortgage terms as MDs, including 100% financing and no PMI. This is significant because new dentists face a unique financial challenge: the highest average student debt of any eligible profession ($312,700) combined with practice acquisition or startup costs.

Physician mortgage loans help California dentists by:

• Preserving cash for practice investment. Zero down payment means your savings stay available for equipment, build-out, and working capital.
• Separating home purchase from practice financing. Your home mortgage doesn’t compete with your practice loan for the same capital.
• Student loan exclusion for dental residents. Dental residents qualifying on current training income can have their student loans excluded from DTI.
• Projected income qualification. New associates joining established practices can qualify using their offer letter salary before their start date.

Whether you’re an associate dentist, a practice owner, or a dental specialist (orthodontist, periodontist, oral surgeon), the DDS or DMD degree is your ticket to physician mortgage benefits with zero down payment.

Doctor Loan Requirements in California 2026

Beyond the medical credential requirement, here’s what you need to qualify:

Credit Requirements

• Minimum 3 tradelines with 12+ months of history
• No foreclosure, short sale, deed-in-lieu, or pre-foreclosure sale within the past 4 years from the note date
• No bankruptcy (Chapter 7, 11, 12, or 13) within the past 4 years from the note date
• No loss mitigation (loan modification, forbearance, or repayment plan) within the past 4 years
• Medical collections up to $10,000 aggregate can remain outstanding and are excluded from qualification

Income Documentation

W-2 employed physicians:

• Most recent 30 days of pay stubs
• Two years of W-2s
• Employment verification

Self-employed physicians (private practice):

• Two years of personal and business tax returns
• Year-to-date profit and loss statement
• Business license verification

Residents, fellows, and new hires:

• Employment contract or offer letter with start date and compensation
• Verification of medical degree completion
• Current training program verification (for residents/fellows)

1099 contractor physicians:

• Employment contract or offer letter with start date and compensation
• Start date must be within 60 days of loan closing (shorter window than the 150-day rule for W-2 employees)
• Contract must specify fixed compensation terms

Reserve Requirements

Reserve requirements for physician mortgages are significantly lower than conventional jumbo loans. Reserves are funds remaining after your down payment and closing costs:

If qualifying on projected income (employment contract, not yet working), additional reserves are required to cover the months between your first mortgage payment and your employment start date. For example, if you close 3 months before your start date, you’ll need 3 extra months of PITIA reserves on top of the standard requirement.

Acceptable reserve sources include checking/savings accounts, retirement accounts (60% of vested value), stock portfolios, and gift funds from family members.

Doctor Loan Rates in California 2026

Physician mortgage rates are generally competitive with conventional jumbo rates, though they may carry a small premium due to the no-PMI, high-LTV structure. Rates change daily based on market conditions, credit score, loan amount, and product type.

How Credit Score Affects Your Rate

Higher credit scores access better pricing tiers. The difference between a 680 and 760+ credit score can be 0.25-0.50% in rate. On a $1.5 million loan, that translates to $3,750-$7,500 per year in interest.

How Down Payment Affects Your Rate

Even though 100% financing is available, making a 5% down payment ($100,000 on a $2M home) may access a lower rate tier. We’ll model both scenarios so you can make an informed decision about whether deploying cash toward a down payment or keeping it in reserves makes more financial sense.

Fixed-Rate vs. ARM Rates

ARM products typically offer lower initial rates than fixed-rate options. For physicians who plan to relocate after residency, fellowship, or within 5-7 years, a 5/6 or 7/6 ARM can provide meaningful monthly savings during the fixed period. We’ll compare options based on your specific timeline.

Where California Doctors Are Buying Homes

California has over 130,000 active physicians, making it the largest physician workforce of any state, plus tens of thousands of dentists, pharmacists, veterinarians, and other medical professionals. The state’s high housing costs make physician mortgages particularly valuable here.

Where California Doctors Are Buying

In most California metros, the median home price exceeds conforming loan limits, which means conventional buyers need jumbo loans with 20% down to avoid PMI. Physician mortgage loans eliminate this barrier entirely with 100% financing and no PMI regardless of whether the loan is above conforming limits.

How to Get a Doctor Loan in California

The process is similar to a conventional mortgage with a few key differences, mainly the medical credential verification and manual underwriting.

Step 1: Verify Your Eligibility

Confirm you hold an eligible medical degree (MD, DO, DDS, DMD, PharmD, VMD, DPM, DNP, DNAP, or CRNA). If you’re in training, have your employment contract or program verification ready.

Step 2: Get Pre-Approved

We review your credentials, income, credit, and assets to issue a pre-approval letter. This tells you exactly how much you can borrow and strengthens your offer in competitive markets.

Step 3: Find Your Home

Shop for your primary residence. Single-family homes, condos, PUDs, townhouses, and modular homes are all eligible. Properties up to 40 acres qualify. Multi-unit properties and investment properties are not eligible.

Step 4: Submit Your Application

Provide your complete application with medical credential documentation, employment verification, income and asset documentation, and property details.

Step 5: Underwriting and Appraisal

Doctor loans require manual underwriting (no automated approval systems). This means a human underwriter reviews your full financial picture, which actually benefits borrowers with non-traditional profiles like high student debt paired with high earning potential.

Step 6: Close and Move In

Sign your closing documents, fund the loan, and get your keys. You must occupy the property within 60 days of closing.

Common Doctor Loan Myths

”Doctor loans have much higher interest rates”

Not true. Physician mortgage rates are competitive with conventional jumbo rates. Any small rate premium is more than offset by the elimination of PMI, which can cost $500-$2,000+ per month on high-value California homes.

”You need to be an attending physician to qualify”

Not true. Residents, fellows, and interns with eligible medical degrees qualify. You can use your training employment contract as income verification.

”Doctor loans are only for MDs”

Not true. Dentists (DDS/DMD), pharmacists (PharmD), veterinarians (VMD), podiatrists (DPM), and CRNAs all qualify alongside MDs and DOs.

”You can use a doctor loan for investment properties”

This one is actually true: you cannot. Doctor loans are strictly limited to primary residences. For investment property financing, other programs are available.

”It’s better to wait and save 20% down”

Usually not true in California. Saving 20% on a $1M home ($200,000) while paying rent takes years, and home prices in California have historically appreciated 5-8% annually. Waiting to save $200,000 while prices rise $50,000-$80,000 per year often means falling further behind. Doctor loans let you start building equity now.

Why Use a Mortgage Broker for Your Doctor Loan?

Most “best physician mortgage” lists online send you to 8-15 different banks and say “apply to each one and compare.” That’s a terrible experience. As a California mortgage broker with over 40 years of combined experience, we do the comparison shopping for you.

What Sets Us Apart

• One application, multiple lenders: We submit to our physician mortgage lender network and bring back the best options
• California market expertise: We know which neighborhoods, price points, and property types work best for medical professionals relocating to or within California
• Physician-specific experience: We understand employment contracts, residency timelines, student loan complexities, and the unique financial profile of medical professionals
• Personal service: You work with a dedicated loan officer, not a website form that routes you to whoever’s on shift
• Speed: Manual underwriting requires an experienced team. We’ve streamlined the process to close on competitive timelines

Eligible Property Types for Doctor Loans

Doctor loans cover standard residential property types for primary residences:

• Single-family residences (SFR)
• Condominiums (warrantable condos that meet standard eligibility)
• Planned Unit Developments (PUD)
• Townhouses
• Modular homes (factory-built but set on a permanent foundation)
• Leaseholds (must meet Fannie Mae requirements)
• Properties up to 40 acres (properties over 10 acres require additional review to confirm no working farm, ranch, or orchard operations)

Not eligible:

• Multi-unit properties (2-4 units)
• Investment properties or second homes
• Manufactured or mobile homes
• Co-ops or non-warrantable condos
• Properties with commercial zoning
• Properties with solar PACE/HERO liens
• Working farms, ranches, or orchards

Can You Refinance a Doctor Loan in California?

Yes, both rate/term and cash-out refinance options are available through the physician mortgage program.

Rate/Term Refinance

If rates drop or you want to change your loan term (e.g., from a 30-year to a 15-year), you can refinance while maintaining the no-PMI benefit. The new loan amount is limited to the current first lien payoff, closing costs, and prepaid items.

Cash-Out Refinance

Access equity in your home for any purpose: practice investment, student loan payoff, home improvements, or other financial goals. Maximum cash back at closing is limited to 1% of the new loan amount above the payoff of existing liens.

Delayed Financing

If you purchased a home with cash (common for physicians competing in hot California markets), you can reimburse yourself with a physician mortgage within 6 months of the purchase. The new loan amount can cover the original purchase price plus closing costs, giving you the benefits of the doctor loan program even after a cash purchase.

Refinancing from Conventional to Doctor Loan

If you currently have a conventional mortgage with PMI, refinancing into a physician mortgage can eliminate that monthly PMI payment, potentially saving $500-$1,500+ per month.

Explore More Purchase Options

California medical professionals may also benefit from these related loan programs:

• Jumbo Loans: For non-physician borrowers purchasing above conforming limits with competitive rates and flexible terms
• Conforming Loans: Standard financing up to the conforming limit. May work for lower-priced markets like Sacramento or Riverside
• Fixed-Rate Mortgages: Lock in today’s rate for the life of your loan with predictable monthly payments
• Adjustable-Rate Mortgages: Lower initial rates for physicians who plan to relocate or refinance within 5-10 years
• DSCR Loans: Investment property financing for physicians building a real estate portfolio
• Bank Statement Loans: Alternative documentation for self-employed physicians and practice owners