Any doctors here used physician loans? Worth it or not?

Used a physician loan for my first house a couple years ago—honestly, it was smoother than I expected. The no PMI thing was huge since my student loans were still looming, and they didn’t make a big deal about those as long as I had my contract in hand. The process felt pretty streamlined, but the one hiccup I ran into was with the underwriter double-checking my contract dates and start date at the hospital. Delayed closing by a week, which was stressful, but not a dealbreaker.

One thing to watch out for: some lenders have slightly higher interest rates on these loans compared to conventional ones. Not always, but worth comparing side by side if you qualify for both. Also, some banks are more familiar with these products than others—my friend had to explain what a resident contract even was at his local branch, which was kind of funny...and frustrating.

If you’re thinking about practice loans or office financing, the requirements can be pretty different from home loans. Sometimes they want more business paperwork or projections. Just something to keep in mind if you’re branching out beyond just buying a house.

I refinanced out of my physician loan last year, and honestly, I think that’s the move if you can swing it after a couple years. The no PMI is great at first, especially when you’re just starting out and cash flow is tight, but those slightly higher rates can add up over time. In my case, once I had a bit more equity and my attending salary kicked in, I qualified for a conventional loan with a much better rate. The monthly savings were noticeable.

One thing that surprised me—some lenders really don’t “get” physician loans or how contracts work, like you mentioned. I had to walk one mortgage officer through my pay structure and explain why my student loans weren’t a dealbreaker. It’s wild how inconsistent the experience can be depending on the bank.

If you’re early in your career and need flexibility, physician loans are a solid option. Just keep an eye on the rate and be ready to refinance when your situation improves. It’s not a forever loan, in my opinion, but it can be a great stepping stone.

I hear you on the “not a forever loan” part. I did the physician loan thing too, and honestly, it felt like paying a premium for convenience. No PMI was nice, but those rates weren’t exactly a bargain. I remember thinking, “Am I really saving that much?” Once my credit and equity improved, refinancing was a no-brainer. Also, the hoops some banks make you jump through—wild. You’d think they’d have figured out how doctors get paid by now...

I hear you on the “not a forever loan” part. I did the physician loan thing too, and honestly, it felt like paying a premium for convenience.

Title: Any doctors here used physician loans? Worth it or not?

I get what you mean about the rates. When I did mine, the “no PMI” part sounded great on paper, but after running the numbers, it didn’t feel like a huge win once you factored in the slightly higher interest. I guess for me, the main draw was being able to buy before my attending salary actually kicked in—otherwise, I’d have been stuck renting for another year or two. The process wasn’t exactly smooth sailing either; the bank kept asking for random paperwork and seemed confused by my contract-to-start situation.

Wouldn’t call it a regret, but if you’re planning to stay put long-term, probably worth looking at conventional options too once you have a bit of equity built up. The flexibility is nice, but it’s definitely not free money.