Physician Loans in Texas: Clear Basics (Plus Myths vs Facts)

Physician loans (also called “doctor loans”) are mortgage programs designed for medical professionals who often have strong income potential—but may be early in their career, carrying student loans, or short on a large down payment.

In Texas, these loans can be a great fit for physicians and certain medical professionals who want to buy a home sooner without waiting years to save 20%.

What is a Physician Loan?

A physician loan is a specialized mortgage that may offer:

• Low down payment options (sometimes as low as 0–5%)
• No private mortgage insurance (PMI) even with low down
• More flexible treatment of student loans (varies by lender)
• Higher loan limits than standard conventional loans in many cases

These programs are offered by specific lenders (not every bank does them), and guidelines vary.

Who Typically Qualifies?

Eligibility depends on the lender, but often includes:

• MD / DO (and sometimes residents/fellows)
• DDS / DMD (dentists)
• DPM, OD, PharmD (varies)
• Some lenders include PAs, NPs, CRNAs, veterinarians, etc.

If you’re unsure, we can point you to lenders who publish their eligible degree list.

Why Physician Loans Can Be a Big Advantage

1) Buy sooner without waiting for 20% down
Many doctors are early-career and don’t want to pause life while saving a massive down payment.

2) No PMI (in many programs)
That can lower the monthly payment compared to a conventional loan with a small down payment.

3) Student loans aren’t always treated as harshly
Some lenders use more flexible calculations than standard conventional underwriting.

What to Watch Out For

Physician loans aren’t automatically “better”—they’re a tool.

Potential downsides:

• Interest rate can be slightly higher than the best conventional rates
• Some programs have stricter reserve requirements (cash on hand)
• Some only allow certain property types (often primary residence only)
• Not every lender offers them, so shopping matters

Physician Loan Myths vs Facts

Myth: “Physician loans are free money.”
Fact: It’s still a mortgage with underwriting—just different guidelines.

Myth: “I need to be an attending.”
Fact: Many lenders allow residents/fellows with an employment contract.

Myth: “Student loans automatically kill my approval.”
Fact: Some lenders consider your income trajectory and use different calculations.

Myth: “It’s only for doctors.”
Fact: Some lenders include dentists, pharmacists, and other medical professionals.

Physician Loan vs Conventional vs FHA vs VA

• Physician loan: Often best for eligible medical professionals who want low down (sometimes 0–5%) and no PMI while keeping more cash available—especially early in their career.
• Conventional: Great when you have strong credit and/or a larger down payment. If you put less than 20% down, PMI usually applies, but it can often be removed later once you build equity.
• FHA: Helpful for buyers who need more flexible credit guidelines and a low down payment, but it comes with FHA mortgage insurance (upfront + monthly) that can cost more over time depending on the scenario.
• VA: A top option for eligible veterans, active-duty service members, and some surviving spouses—often with 0% down, no PMI, and competitive rates. It does include a VA funding fee in many cases (some borrowers are exempt), and it’s typically for primary residences.

👉 Learn More About: Conventional Home Loans in Texas: Requirements, Myths, and What to Expect

👉 Learn More About: FHA Loans in Texas: Low Down Payment Options, Requirements, and Myths

👉 Learn More About: VA Home Loans in Texas: Benefits, Eligibility, and Myths vs Facts

Quick Checklist: Is a Physician Loan Right for You?

A physician loan might make sense if:

• You’re early-career and want to buy now
• You don’t want to tie up cash in a big down payment
• Your student loan balance is high but income is solid/ascending
• You want to avoid PMI

Call to Action

If you’re a medical professional buying in San Antonio, New Braunfels, Garden Ridge, Schertz/Cibolo, or the Hill Country, we’ll help you compare options side-by-side (physician vs conventional vs FHA vs VA) and match you with lenders who actually offer any of these programs.