Honestly, I see where you're coming from, but for some folks, the low down payment and no PMI on physician loans can be a game changer—especially early in their careers. Sure, the rates are higher, but sometimes that flexibility is worth the extra cost upfront. It really depends on your timeline and how fast you plan to pay down or refinance.
I get why the low down payment is tempting, but honestly, those higher interest rates can really add up over the years. I ran the numbers when I was looking, and even with no PMI, the extra interest cost was more than I expected. If you’re planning to stay put for a while or don’t refinance quickly, it might not be the best deal. Sometimes waiting a bit longer to save up for a conventional loan pays off in the long run... just my two cents.
Title: Any doctors here used physician loans? Worth it or not?
Sometimes waiting a bit longer to save up for a conventional loan pays off in the long run... just my two cents.
I hear you, but I think it really depends on your situation and how quickly you want to get into a house. Physician loans have their drawbacks, sure, but for a lot of new docs with hefty student loans and not much saved up, waiting just isn’t realistic. You could end up renting for years, missing out on potential home appreciation. Have you factored in the cost of rent vs. the extra interest? Sometimes the math isn’t as clear-cut as it looks on paper.
Also, most people don’t keep the same mortgage for 30 years. If you plan to refinance or move within 5-7 years, those higher rates might not sting as much as you think. Just saying, there are opportunity costs to waiting too. It’s not always about the lowest possible interest rate—sometimes access and timing matter more.
Honestly, I see both sides here. Physician loans can be a lifesaver if you’re just starting out and don’t have the 20% down—especially with student debt in the mix. The higher rate is a trade-off, but if you’re in an area where rent isn’t cheap and home values are climbing, getting in early sometimes makes sense. I’ve seen plenty of new docs do well with these loans, as long as they’re realistic about what they can afford. Just make sure to look at all the fine print... some lenders sneak in odd fees or prepayment penalties.
I get where you’re coming from, but I actually decided to wait and save up a bigger down payment instead of jumping into a physician loan right out of residency. The temptation was real—I had friends who went for it, and yeah, it looked like a good way to stop throwing money at rent. But the higher interest rates and those little fees you mentioned started to add up when I ran the numbers.
I ended up renting for another year, which wasn’t ideal, but it gave me time to build up some savings and keep my monthly payment lower in the long run. Plus, it was a lot less stressful knowing I wasn’t stretching myself too thin right after training. I know everyone’s situation is different, but for me, waiting paid off. Sometimes the “get in now or you’ll be priced out” pressure is just that—pressure. If you can swing it, taking your time might be worth considering.