Physician Mortgage Myths — Debunked by a Realtor Who Works with Doctors

If you're a healthcare professional considering buying a home, you've likely heard about "physician mortgages" or "doctor loans." As your Realtor who works regularly with doctors in the Atlanta area, I’ve fielded all the common beliefs—and seen where they hold up and where they don’t. Let’s break down what’s true, what’s misleading, and what you should ask before you sign.

🧩 Myth 1: “You’ll be disqualified because of student‑loan debt.”

Reality: Many physician‑specific loan programs do not count full student‑loan balances when calculating your debt‐to‐income ratio (DTI) because they recognise your future earning potential. WealthKeel Advisors LLC+2LeverageRx+2
So, while yes, student debt matters, it’s not automatically disqualifying—especially if you’re in residency, fellowship or newly practicing.

🧮 Myth 2: “You’ll need a huge down payment (20 %+).”

Reality: Some doctor‑loan programs allow very low or even zero down payment options, and may even waive Private Mortgage Insurance (PMI) despite a small down payment. American Medical Association+1
That doesn’t mean you should always go zero down, but the door is wider than with many conventional programs.

⚠️ Myth 3: “These loans always come with bad terms—higher interest rates or hidden fees.”

Reality: While not all physician‑loans are identical, many now have competitive interest rates and transparent structures. Some sources note that the slight risk premium lenders accept for low down payment is offset by the low risk profile of medical professionals. LeverageRx+1
But yes—you must read the fine print. Some programs may have adjustable rates, limited property types, or exclude investment homes.

📝 What to Ask When You’re Considering a Physician Mortgage

• Does this lender accept an employment contract or offer letter as proof of income?

• How does student‑loan debt factor into my DTI ratio with this program?

• Is PMI waived or reduced with this physician‑loan option?

• What types of properties qualify (primary residence only? condos? investment properties?)

• What is the interest rate vs a comparable conventional loan?

• What happens if I relocate within 1‑3 years—how portable is this loan?

✅ Final Take

Physician mortgages can be a powerful tool—especially early in your medical career—but they’re not magic. You still need to align the loan with your career path, planned stay in a region like Atlanta, and long‑term goals. The myths we covered are common—but once you know what’s actually true, you’ll be in a stronger position to make the right move.