Becoming a doctor takes years of hard work and effort. While many become doctors in order to help others, it is also a career that can pay very well. However, in order to get to the point where you are well compensated, you will have to go through medical school and residency. This process can be very expensive. The average medical student in 2018 graduated with a startling $196,520 in debt from student loans. This amount of debt can have major impacts on your financial life, especially when it comes to purchasing a home. Luckily a doctor mortgage loan can help, here's what you should know. 


There are a variety of requirements for obtaining this type of home loan, and they vary from lender to lender. With a doctor loan, most lenders will require that you provide proof of your medical degree as well as a signed contract from your job as a doctor. Depending on the lender, these loans may also be available to dentists and other medical professionals. In order to qualify you will typically need a credit score above 700, deferred student loans, and a debt-to-income ratio less than 45 percent when student loans are taken out of the calculation.

Low or No Down Payments

When you are a new doctor, saving up for a down payment can be difficult. The good news is that with these types of mortgages zero or low down payments are needed. For many newly minted doctors, this can take a lot of pressure off when it comes to home ownership. These types of loans are also unique in that there is no private mortgage insurance, or PMI, required. This insurance can add hundreds to your monthly bill, in order to avoid it with a conventional loan you would need a down payment of at least 20 percent.

Mortgage Rates May Be Higher

While there are many benefits to doctor mortgage loans, they often have higher interest rates than conventional loans. The average rate for a doctor loan is 5.375 percent compared to 4.5 percent for a conventional loan. It's important to take this into account since a higher mortgage rate can cost thousands of dollars over the course of owning your home. Shopping around for this type of loan will help you find the best rate possible.

If you are a doctor early on in your career, it can be difficult to purchase a home, especially if you are struggling with large amounts of student debt. Luckily a doctor loan can help but there are a few things that you should know. First, it's important to be aware of the requirements for these loans. You will likely need a credit score above 700 in addition to other requirements. Low or no down payments are needed for these loans and there is no PMI, but mortgage rates may be higher.