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What Down Payment Is Required for Physicians, Can It Really Be 0–10%?

What Down Payment Is Required for Physicians, Can It Really Be 0–10%?

by | Feb 16, 2026

For most physicians, a down payment of 0–10% is not only possible, it’s common, especially when using a physician mortgage loan. Many doctors qualify for 100% financing or low down payment options without private mortgage insurance (PMI), depending on purchase price, credit profile, and lender guidelines.

Why This Question Matters So Much for Physicians

After medical school, residency, and years of delayed earnings, many physicians are financially strong on paper but cash-light in reality. Between:

  • Student loan balances
  • Relocation costs
  • Licensing and board fees
  • Insurance expenses
  • Building emergency savings


Saving a traditional 20% down payment can feel unrealistic.
The good news? The “20% down” rule is largely a myth, especially for doctors.
Let’s break down what’s actually required.

 

Do Physicians Really Need 20% Down to Buy a Home?

No. The 20% down payment standard is not a lending requirement, it’s primarily tied to avoiding PMI.

Here’s what most buyers (including physicians) actually see:

  • Conventional loans: often 3–5% down
  • FHA loans: as low as 3.5% down
  • Physician loan programs: often 0–10% down

The difference is that physician-specific programs are designed around your income trajectory, not just your current balance sheet.

 

Why Are Physicians Treated Differently by Mortgage Lenders?

Lenders consider physicians lower-risk borrowers because of:

  • High lifetime earning potential
  • Stable employment
  • Advanced professional credentials
  • Historically low default rates

Even with significant student loan debt, lenders understand that physicians typically experience rapid income growth after training.

Because of this, many banks offer physician mortgage programs tailored to early-career doctors, especially residents, fellows, and new attendings.

Can a Down Payment Actually Be 0%?

Yes — in many cases.

Physician loan structures often look like this:

  • 0% down up to a certain loan amount
  • 5% down for mid-range home prices
  • 10% down for higher-value properties

Exact requirements depend on:

  • Purchase price
  • Credit score
  • Debt-to-income ratio
  • Signed employment contract
  • Property location
  • Lender guidelines

Some programs offer full financing up to specific limits, with stepped requirements beyond that.

 

What Happens If Physicians Put Less Than 20% Down?

Normally, putting less than 20% down triggers private mortgage insurance (PMI) an added monthly cost protecting the lender.

Here’s where physician loans stand out:
👉 Many physician mortgage programs do not require PMI, even with 0–10% down.
Instead of charging PMI, lenders account for risk through underwriting models or slightly adjusted interest rates.
For physicians, this can mean:

  • Preserving liquidity
  • Avoiding hundreds in monthly PMI
  • Saving thousands annually

 

Why Would a Physician Choose a Low Down Payment on Purpose?

A low down payment isn’t just about affordability, it can be strategic.

1. Does Preserving Cash Flow Matter More Early in a Medical Career?
Often, yes.

Early-career physicians face:

  • Student loan repayment
  • Moving expenses
  • Delayed retirement investing
  • Practice setup costs

Maintaining liquidity provides flexibility during career transitions.

2. Is It Better to Invest Instead of Putting 20% Down?
Sometimes.

Capital tied up in home equity is illiquid. Some physicians prefer to:

  • Max out retirement accounts
  • Build brokerage investments
  • Maintain emergency reserves
  • Pay down higher-interest debt

Depending on your financial strategy, a smaller down payment may align better with long-term goals.

3. Does Waiting to Save 20% Delay Wealth Building?
It can.

Home prices and interest rates fluctuate. Waiting years to save 20% could mean:

  • Higher future purchase prices
  • Less favorable rates
  • Delayed equity building

Physician loan programs allow doctors to buy based on career readiness, not just savings milestones.

 

When Does It Make Sense for Physicians to Put More Than 10% Down?

There are scenarios where a larger down payment is beneficial:

  • You want a lower monthly payment
  • You’re purchasing a high-priced property
  • You prefer conservative leverage
  • You want stronger interest rate options
  • You plan to stay long-term

A higher down payment reduces:

  • Loan size
  • Total interest paid
  • Overall financial risk


The right approach depends on your comfort level with leverage and long-term plans.

 

What Do Lenders Evaluate Besides the Down Payment?

Even with flexible physician programs, lenders assess:

  • Credit score
  • Debt-to-income ratio
  • Employment contract
  • Specialty and income trajectory
  • Cash reserves

Many physicians can qualify using a signed attending contract, even before their first paycheck. Some residents and fellows may also qualify based on future income.

Is There a “Right” Down Payment for Physicians?

There is no universal answer.

The best down payment is the one aligned with:

  • Your career stage
  • Risk tolerance
  • Investment strategy
  • Family needs
  • Geographic stability

For many physicians, 0–10% is realistic and strategic but it should fit within a broader financial plan.