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JD MORTGAGE® connects you with lenders offering low to no down payment mortgages designed specifically for high-income professionals. We find the lenders that allow jumbo loan balances, relaxed debt-to-income ratios and typically do not require private mortgage insurance (PMI).
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California is the land of dreams, boasting great weather, tons of hiking trails and a diverse array of cultures and people. It is also the most populous state in America and home to the iconic Hollywood film and television industry.
California does, however, have a reputation for having an expensive housing market. Rents in major metropolitan areas such as Los Angeles and San Francisco are sky high, and data from the California Association of Realtors shows that the average price of a single-family home in California is $898,980.
For many, California may seem too expensive to even think about purchasing a home. Doctors, however, along with dentists and certain other high-earning professionals can take advantage of the state’s physician mortgage loan programs. These programs allow any of the more than 100,000 medical doctors in California to purchase a home with minimal or no down payment.
With the California housing market the way it is, you may well want to consider a doctor mortgage, but weighing the pros and cons first is advisable. Personal finance is a challenge for medical residents on limited incomes. When many doctors finish their residency, however, their earning power increases tremendously. With an employment offer in hand, signing up for a mortgage payment through a physician home loan makes these purchases accessible. In the future, repayment is not as much of an issue when the higher paycheck kicks in, allowing doctors to find their dream home on the NMLS now and make an offer with the help of a lender.
To start, you can enjoy a wide range of benefits if you go with a physician mortgage loan, including:
Additionally, lenders who service doctor mortgages give special consideration to student debt. That means that even if you have significant debt left over from medical school or college, you can still qualify for physician mortgage loans. Much like veterinarians, doctors may enter their new career with a lot of student loan debt and other expenses after having lived on a limited income for years.
While those are significant assets, there are some cons you need to consider, including:
Lenders who service these loans may also want to build a relationship with you and may require that you open an account with them. Of course, having a strong relationship with a bank can serve you and your career well in the years to come. As always, read through all details on disclosures and about details like interest rates to confirm that this is the right bank for you.
If you’re in the market to purchase a home in California, consider these doctor mortgage loans that are available to state residents.
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usually responds within 30 minutes
Medical doctor (MD/DO); Dentist (DMD, DDS), Pharmacist (Pharm D), Attorney (JD), Veterinarian (DVM), Physician Assistant, Registered Nurse (RN/NP/CRNA), ATP Pilots, CPA
$500M+ Closed Loans
Flagstar Bank was chartered in 1987 and holds around $23 billion in assets, making it a medium sized bank. However, they punch above their weight when it comes to mortgages.
The bank is the sixth largest bank mortgage originator nationally. They only offer ARM products when it comes to doctor mortgages but their ability to lend in all 50 states means they're a player at every closing. There is no application fee or prepayment penalties. They also offer a float down, buy down, and recast option. [ Read Review ]
Medical doctor (MD/DO); Dentist (DMD, DDS), Pharmacist (Pharm D), Attorney (JD), Veterinarian (DVM), Physician Assistant, Registered Nurse (RN/NP/CRNA), ATP Pilots, CPA
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 5% | up to $1.5 million |
| 20% | up to $2 million |
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usually responds within 30 minutes
Medical doctor (MD/DO), Dentist (DMD/DDS), Podiatrist (DPM)
$10M+ Closed Loans
Keybank is a major national bank based in Ohio with a competitive doctor mortgage program. They also lend across a large part of the United States.
The Keybank doctor mortgage program does not require you to be a minimum or maximum number of years out of medical school to qualify. They also offer large mortgage options if needed and part of your down payment can be supplied in money that you've received as a gift. [ Read Review ]
Medical doctor (MD/DO), Dentist (DMD/DDS), Podiatrist (DPM)
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 5% | up to $1.5 million |
| 15% | above $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD); Dentist (DMD, DDS); Optomestrist (OD); Podiatrist (DPM); Fellows, Residents
$500M+ Closed Loans
Bank of America is one of the original lenders (if not THE original lender) in the physician mortgage space. With over $3 trillion in assets, it’s one of the largest banks in the United States and chances are good that you are familiar with the company.
The Bank of America physician mortgage program is available for residents and fellows with a job lined up. They can close on a home 90 days before they start. You can often exclude your student debt from your total debt when you apply for a mortgage. [ Read Review ]
Medical doctor (MD); Dentist (DMD, DDS); Optomestrist (OD); Podiatrist (DPM); Fellows, Residents
| Down payment | Financing |
|---|---|
| 5% | up to $1 million |
| 10% | up to $1.5 million |
| 20% | up to limit |
• Online
usually responds within 30 minutes
Medical doctor (MD); Dentist (DMD, DDS); Fellows, Residents
$500M+ Closed Loans
Citizens Bank is one of the largest banks in the United States. We bet you didn't know that it is head-quartered in the smallest state: Rhode Island.
With over $160 billion in assets, it's no surprise that Citizens offers a full range of financial products, including a physician loan. New medical professional graduates who are under contract for residency within 60 days of closing and have not yet obtained a license are eligible. No more than 10 years out of residency. Self-employed professionals are eligible with a two-year history of self-employment income. [ Read Review ]
Medical doctor (MD); Dentist (DMD, DDS); Fellows, Residents
| Down payment | Financing |
|---|---|
| 5% | up to $850 thousand |
| 10% | up to $1 million |
| 15% | up to $1.5 million |
• Online
usually responds within 30 minutes
Medical doctor (MD, DO); Dentist (DMD, DDS); Attorney (JD), Fellows, Residents
$50M+ Closed Loans
First Bank, with a 100-year history of family ownership, offers a range of banking services and is headquartered in Missouri?.
The First Bank Physician Mortgage Program is designed to assist professionals, including doctors, dentists, and lawyers, with their mortgage needs. It offers the option to finance a single-family home or housing in a planned unit development. The program allows professionals to qualify for a mortgage based on contracted income levels, facilitating the relocation process. It provides low down payment options and no requirement for private mortgage insurance, which can be particularly beneficial for professionals in transition or establishing their practice. [ Read Review ]
Medical doctor (MD, DO); Dentist (DMD, DDS); Attorney (JD), Fellows, Residents
| Down payment | Financing |
|---|---|
| 0% | up to $400 thousand |
| 5% | up to $1 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO); Dentist (DMD, DDS), Podiatrist (DPM), Fellow, Resident
$500M+ Closed Loans
Truist was formerly known as SunTrust and has historically been a strong player in the doctor mortgage world, thanks to a strong physician home loan program.
Medical professionals with a job offer can close up to 90 days prior to the start date. For doctors and dentists with 10 to 15 years post-training experience, 89.99% financing is available for up to $1.5 million. Truist won’t let you borrow outside of your debt-to-income ratio of 43%, but your student loan payment can be excluded from the debt component if the student loans are deferred for at least 12 months at the time of closing. [ Read Review ]
Medical doctor (MD/DO); Dentist (DMD, DDS), Podiatrist (DPM), Fellow, Resident
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
| 5% | up to $1.5 million |
| 20% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD, DO); Dentist (DMD, DDS); Pharmacists, Chiropractor, Veterinarian, Fellows, Residents
$50M+ Closed Loans
Wintrust is headquartered in Illinois but can lend in all 50 states (unfortunately, their doctor program is not available everywhere). They originate in excess of $4 billion in mortgages annually.
The Wintrust physician mortgage program can use 1099 contract income to qualify for underwriter approval. Student loan payments aren't included in the DTI calculation if there is no scheduled student loan payment for the next 12 months. [ Read Review ]
Medical doctor (MD, DO); Dentist (DMD, DDS); Pharmacists, Chiropractor, Veterinarian, Fellows, Residents
| Down payment | Financing |
|---|---|
| 0% | up to $850 thousand |
| 3% | up to $1.25 million |
| 5% | up to $1.5 million |
| 10% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO); Lawyers(JD), Residents, Fellows
$500M+ Closed Loans
US Bank has a great doctor mortgage program but it isn't advertised on the bank's website. You'll have to contact them directly.
US Bank is able to lend in all 50 states, meaning this program is available to most of the country's doctors and physicians. The downside is that the program is fairly limited. For example, dentists, pharmacists and nurses aren't eligible. [ Read Review ]
Medical doctor (MD/DO); Lawyers (JD), Residents, Fellows
| Down payment | Financing |
|---|---|
| 5% | up to $1 million |
| 10% | up to $1.5 million |
| 15% | up to $2 million |
• Online
usually responds within 30 minutes
Medical doctor (MD); Dentist (DMD, DDS)
$500M+ Closed Loans
PNC Bank is an established player in the mortgage industry that ranks 8th largest by total assets in the country.
PNC Bank's doctor mortgage program is a specialized loan offering designed to assist medical professionals in achieving their homeownership goals. The program offers a low down payment, no private mortgage insurance requirement, and higher loan limits. It caters to a wide range of medical professionals including MDs, DOs, DDSs, DMDs, and others, even allowing residents and fellows to qualify. [ Read Review ]
Medical doctor (MD); Dentist (DMD, DDS)
| Down payment | Financing |
|---|---|
| 5% | up to $1 million |
| 10% | up to $1.5 million |
| 15% | up to $1.765 million |
• Online
usually responds within 30 minutes
Medical doctor (MD/DO), Dentist (DMD/DDS), Podiatrist (DPM)
$10M+ Closed Loans
Laurel Road used to be an independent bank but is now owned by Keycorp and part of the Keybank family. They focus on financial products for healthcare professionals.
Laurel Road has a middle of the road doctor mortgage program. It's available in all 50 states but limited to healthcare professionals and only goes up to $1 million. Retired doctors are not eligible. [ Read Review ]
Medical doctor (MD/DO), Dentist (DMD/DDS), Podiatrist (DPM)
| Down payment | Financing |
|---|---|
| 0% | up to $1 million |
• Online
usually responds within 30 minutes
Medical doctor (MD, DO); Dentist (DDS, DMD); resident, fellows; Physician Assistant (PA), Veterinarian (DVM); Nurse, Pharmacist
$50M+ Closed Loans
Premier Realty and Lending is a global mortgage lender based in California, serving clients across the state with over 20 years of experience.
Premier Realty and Lending specializes in high-end mortgages for doctors and other professionals. They offer a Doctor Loan Program designed to streamline the mortgage process, from application to move-in, using high-tech, smartphone-friendly tools. The team supports a range of medical and other professions. Languages spoken include Urdu and Punjabi. [Read Review]
Medical doctor (MD, DO); Dentist (DDS, DMD); resident, fellows; Physician Assistant (PA), Veterinarian (DVM); Nurse, Pharmacist
| Down payment | Financing |
|---|---|
| Not reported | up to ?% |
| Not Reported | up to ?% |
If you are asking yourself whether a physician mortgage loan is right for you, first check in with yourself about where you are in your career. When purchasing a home, you want to make sure that you are in a job you believe you will stay committed to for years to come. If you are at the start of a job and have not put in enough years to know whether it will continue to work for you, maybe committing to a home should wait.
If you’re confident that you’re staying in California, a physician mortgage loan may make a housing purchase more affordable. Unlike a refinance or traditional borrower scenario, these loans are specifically made for doctors and helps healthcare professionals like you who are looking for real estate property to buy on the NMLS.
Once you take out a loan with one of these lenders, future monthly payments will apply like a regular mortgage. Unlike traditional homeownership loan options or refinancing, these loans are specifically available to medical providers to purchase a new home. For medical residents, this is a viable option for someone who does not yet have the employment history or substantial down payment to cover a more traditional loan. Likewise, residents might have relied on a credit card to get through medical school or residency, but are now focused on improving their personal finance as they start their new job offer.
Another thing to keep in mind? Doctor mortgages do often come with a higher rate. If you prefer to wait and see if you can qualify for a conventional loan that might offer a lower rate, then do so. It can save you over the life of the loan and may be worth the temporary delay in buying a home.
Now let’s take a look at some examples of the physicians in California that are taking out doctor mortgages. You may find that their narratives line up directly with yours and may add some clarity to your decision making process.
Myra is on top of her game. Not only did she graduate at the top of her class from the David Geffen School of Medicine UCLA and sail through her residency, she’s now starting a new position in plastics at Cedars Sinai. Her career is more than on track and she is set to become a high earner in due course.
She knows she wants to stay in LA for the rest of her career and she is ready to purchase her first home. The problem is she still has a significant amount of student debt to pay off, and this has skewed her DTI ratio to the point where banks won’t approve her for a conventional loan. Given Myra’s contract with Cedars and her earning potential, a doctor mortgage is a perfect choice for her.
In some situations, a doctor mortgage can come with an interest rate that is as much as 0.25% higher than the one available on a conventional loan. That being said, there are some scenarios in which banks can extend offers to physicians and other high-earning professionals that actually offer a better rate than conventional options.
That’s what has just happened to Randy, a dentist with an established practice in Alameda. A regional bank looking to attract new and long-term business is offering a doctor mortgage that is actually a better deal than the conventional loan he was considering. With the student debt-friendly terms and the other benefits that come with a physician loan, Randy has decided to go with a physician loan and bypass the conventional mortgage.
If you’re looking to explore the best physician loans in other states, click on your state below.
Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
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