Physician Mortgage Calculator

Enter your target home price, the current conventional interest rate, the corresponding physician loan rate, and your intended conventional down payment percentage.

The calculator compares the upfront cash required and the monthly payments between a 0% down physician loan and a traditional conventional mortgage.

A "Physician Loan" (or Doctor Mortgage) is a unique loan product that allows doctors to buy a home with 0% to 5% down and NO Private Mortgage Insurance (PMI), while ignoring student loan debt in the DTI calculation.

Banks offer this because they know doctors have extremely low default rates and high future earning potential. This allows residents and new attendings to buy homes without wiping out their scarce cash reserves.

Standard Amortization: P = L[c(1 + c)^n]/[(1 + c)^n - 1] where L is Loan Amount, c is Monthly Interest Rate, and n is number of months (360 for a 30-year).

Conventional loans usually require a 0.5% to 1.0% annual PMI fee if you put less than 20% down. Physician loans legally waive this requirement entirely, which can save hundreds of dollars a month.

• Pearl: For residents and fellows, the Physician Loan is a superpower. Keeping $100k of cash invested instead of locked into home equity early in your career allows compound interest to work in your favor drastically.
• Pitfall: Buying "too much house". Just because a bank will loan you $1.5M with $0 down based on your new attending contract doesn't mean you can afford the $10,000/month payment while also trying to catch up on retirement savings.
• Pearl: Physician loans typically have slightly higher interest rates (0.25% to 0.50% higher) than conventional loans. You are paying a slight premium on the rate in exchange for the 0% down and waived PMI benefits.