Loan Programs · 7 min read
Physician Home Loans in California (2026): Low-Down for Doctors
A physician home loan lets doctors buy in California with little or no money down, often 0-10%, on loan amounts that run well into jumbo territory, with no monthly PMI. The other draw is how these programs read your resident or fellowship debt: many investors exclude deferred or income-driven (IDR) student-loan payments from your ratios, or use the IBR figure instead of a full amortized payment. Eligibility centers on MD, DO, DDS, and DMD degrees, though several lenders extend it to other high-earning clinicians. Because guidelines shift by investor, a broker like Save Financial shops the programs against each other instead of selling you one bank's box.
What a physician loan actually is
A physician loan is a specialty mortgage built for doctors and dentists who have strong future income but thin current savings and a stack of training debt. It trades the usual down-payment and mortgage-insurance rules for terms that fit a clinician balance sheet. Three features carry the program.
- Low or zero down payment without private mortgage insurance (PMI), even above conventional limits.
- Jumbo loan sizes at high loan-to-value, which matters in California where a starter house clears a million in much of the coast.
- Lenient student-loan treatment, so six-figure resident debt does not automatically sink your debt-to-income ratio.
None of this is charity. Lenders are betting on the earning curve of a physician who just finished training. Default rates on doctor loans have historically run low, which is why banks and non-bank investors keep the product on the shelf.
Down payment tiers by loan amount
The headline is that down payment scales with loan size, and the exact break points move by investor. Below is a representative 2026 structure. Read it as a map, not a rate sheet, because the lender we place you with sets the final grid.
| Loan amount | Typical minimum down | PMI |
|---|---|---|
| Up to ~$1,000,000 | 0% | None |
| Up to ~$1,500,000 | 5% | None |
| Up to ~$2,000,000 | 10% | None |
| ~$2,000,000 and above | 10-15%+ | None |
In a lot of California markets the value sits in that no-PMI jumbo band. On a conventional jumbo you might be asked for 20% down or hit with mortgage insurance; a physician program can get you in with a fraction of that and skip the PMI line item entirely. On a $1.4M purchase, moving from 20% down to 5% frees up more than $200,000 of cash you keep for reserves, a practice buy-in, or renovations.
Who qualifies: eligible degrees
The core of every program is the professional degree. Most investors approve the following, though the exact list is one of the things that varies most from lender to lender.
| Degree | Field | Typical eligibility |
|---|---|---|
| MD | Physician | Nearly all programs |
| DO | Osteopathic physician | Nearly all programs |
| DDS / DMD | Dentist | Most programs |
| DPM | Podiatrist | Many programs |
| DVM | Veterinarian | Some programs |
| OD, PharmD, CRNA, PA, NP | Optometry, pharmacy, anesthesia, mid-level | Select lenders only |
Residents, fellows, and newly minted attendings are all in play. An established attending ten years out qualifies too, but the program earns its keep for people early in the earning curve who have not yet built a 20% down payment.
How student loans get treated
This is where the physician loan separates from a normal mortgage, and it is usually the difference between an approval and a decline. On a conventional loan, deferred student debt often gets counted at roughly 0.5% to 1% of the balance per month, which on $250,000 of resident debt is a phantom $1,250 to $2,500 monthly payment against your ratios. Physician programs handle it more realistically.
| Situation | Conventional treatment | Physician-loan treatment |
|---|---|---|
| Loans in deferment or forbearance | 1% of balance counted | Often excluded, or a nominal figure used |
| Income-driven repayment (IDR / IBR) | Full amortized payment may be used | Actual IDR / IBR payment used as shown |
| Loans not yet in repayment | Imputed payment counted | Frequently excluded until repayment begins |
The practical effect: a resident carrying $300,000 in loans on a $400/month IBR plan gets that $400 counted, not a made-up $3,000. That single guideline is what lets the debt-to-income math work.
The employment-contract head start
New attendings rarely have to wait until their first paycheck to buy. Most physician programs let you close on a signed employment contract before you start the job, commonly up to 60 to 90 days ahead of the start date. The lender qualifies you on the contract salary rather than pay stubs you do not have yet.
That is a big deal for a relocation. A physician finishing a fellowship in June who signs with a California group starting in September can close in July, move the family in over the summer, and report to work already housed. The usual documentation is the signed offer, and for some lenders proof of reserves to cover payments until income begins. Terms vary, so confirm the exact window with the program before you write an offer.
Why this matters more in California
California prices push a lot of ordinary purchases straight into jumbo territory, and that is exactly where the physician loan does its best work. A conventional buyer in Newport Beach or the Westside is often looking at 20% down plus reserves on a jumbo, or PMI they cannot shake off for years. A physician borrower can enter the same price point with 5% to 10% down and no PMI.
The catch is that not every physician program is licensed and competitive in California, and the ones that are do not agree on down-payment tiers, degree lists, or student-loan rules. That is the argument for a broker. Save Financial shops multiple physician-loan investors against your actual numbers, degree, debt structure, and closing timeline, then places you with the one whose guidelines fit rather than forcing you into a single bank's grid.
About this article: Save Financial publishes California mortgage guides and market updates. We are a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) serving all 58 counties. For a real, personalized rate quote, apply online or call 949-379-5320.