--- title: "Physician Loans: 0% Down, No PMI...So What's the Catch?" description: Physician loans can offer low or no down payments, no PMI and different treatment of student debt. Learn the pros and cons before choosing one. image: https://blog.livinginsouthreno.com/hubfs/Physician%20Loans%20Pros%20and%20Cons%20(2).png --- [![Logo](https://blog.livinginsouthreno.com/hs-fs/hubfs/Logo.png?width=1500&height=500&name=Logo.png "Logo")](https://www.livinginsouthreno.com/) Open main menu Close main menu - [Buyers](https://www.livinginsouthreno.com/buyers) - [Sellers](https://www.livinginsouthreno.com/sellers) - [Current Listings](https://www.livinginsouthreno.com/current-listings) - [Contact Us](https://www.livinginsouthreno.com/contact-us) [Mortgage](https://blog.livinginsouthreno.com/tag/mortgage) [Buyer Tips](https://blog.livinginsouthreno.com/tag/buyer-tips) # Physician Loans: 0% Down, No PMI...So What's the Catch? ![Ken Angst REALTOR®, P.E. Nv Lic S.168655](https://app.hubspot.com/settings/avatar/4d8aeb5e1542057ee25a8b3a3a947d18) [Ken Angst REALTOR®, P.E. Nv Lic S.168655](https://blog.livinginsouthreno.com/author/ken-angst-realtor-haute-properties-nv) [Share this blog post on Twitter](https://twitter.com/intent/tweet?text=I+found+this+interesting+blog+post&url=https://blog.livinginsouthreno.com/physician-loans-0-down-no-pmi...so-whats-the-catch) [Share this blog post on Facebook](http://www.facebook.com/share.php?u=https://blog.livinginsouthreno.com/physician-loans-0-down-no-pmi...so-whats-the-catch) [Share this blog post on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.livinginsouthreno.com/physician-loans-0-down-no-pmi...so-whats-the-catch) ![Physician Loans Pros and Cons text with image of male physician ](https://blog.livinginsouthreno.com/hubfs/Physician%20Loans%20Pros%20and%20Cons%20(2).png) Physician loans can sound almost too good to be true. Depending on the program and borrower, a physician loan may let you buy a home with no down payment, avoid private mortgage insurance, and receive different treatment of student loan debt when qualifying. For a physician who has spent years completing medical school and training, those can be significant advantages. But that doesn't automatically mean a physician loan is the best mortgage. There are trade-offs to consider, which is why Elena Boland of Wholesale Mortgage Services and I recently sat down to review the pros and cons of physician loans. ## Pro: Low or Potentially No Down Payment One of the biggest attractions of a physician loan is the potential for a very low down payment or even 0% down. That can be particularly appealing to physicians who have reached a strong income level but haven't had years to accumulate savings for a traditional down payment. It can provide another path to homeownership without requiring the buyer to wait several more years to build a large cash reserve. But the amount you can finance and the down payment required can vary by lender and program. ## Con: Your Interest Rate May Be Higher The ability to put little or nothing down doesn't come without potential trade-offs. Depending on the program, physician loans may carry a higher interest rate than other financing options available to the same borrower. Some physician loan programs also use adjustable-rate mortgages, or ARMs. An ARM isn't automatically good or bad, but buyers need to understand how long the initial rate is fixed, when it can adjust, and how that fits with their plans for the property. ## Pro: Student Loan Debt May Be Treated Differently This can be a significant consideration for physicians. Medical professionals can leave school with substantial student loan balances. Depending on the mortgage program, those obligations can significantly affect the borrower's debt-to-income ratio. Physician loan programs may treat that student loan debt differently when determining eligibility. That's one reason someone with a high income who has difficulty qualifying under another mortgage program may want to explore a physician loan. ## Con: Not Every Physician Loan Is the Same No single physician loan has one set of rules. Eligibility, loan limits, qualifying professions, rates, and other requirements vary by lender. A program available to one medical professional may not be available to another. That's why shopping and comparing programs matters rather than assuming the first physician loan you're offered is your only option. ## Pro: No PMI May Be Required With many conventional mortgages, putting less than 20% down can mean paying private mortgage insurance. Physician loans may offer low-down-payment financing without requiring PMI. Removing that additional monthly expense can make a meaningful difference in the overall payment. Again, however, it's important to compare the entire loan rather than evaluating it based on PMI alone. ## Con: It's Still Possible to Become Overextended This may be the most important part of the conversation. A lender determining that you qualify for a certain payment doesn't necessarily mean that payment comfortably fits your life. Physicians may have student loan payments, other financial obligations, or career opportunities that could require relocating sooner than expected. Putting little or nothing down can also mean having less equity in the property if you need to sell relatively soon after purchasing. The question shouldn't simply be, **"How much can I qualify for?"** A better question is, **"What payment and loan structure make sense for my actual financial situation and longer-term plans?"** ## So, Is a Physician Loan Worth Considering? Absolutely worth considering. But it's worth **comparing**, not automatically choosing. Compare the physician loan with the other financing options available to you. Compare the payment, interest rate, down payment, loan structure, cash reserves, student loan obligations, and how long you realistically expect to own the home. That's ultimately the point of our Pros & Cons series. There usually isn't one financing option that's right for everyone. ### Watch Physician Loans: Pros & Cons Elena Boland, Senior Loan Officer with Wholesale Mortgage, and I go through the advantages, disadvantages, and questions worth asking before choosing a physician loan.   If you're considering buying a home in Reno or Sparks and want to talk about the real estate side of the process, reach out anytime. **Ken Angst, Realtor** Angst Real Estate Team | Haute Properties NV LLC [**📲 **Call or text:****](mailto:Ken@LivingInSouthReno.com)**[775-525-0309](tel:+17755250309) 📧 **Email:** [Ken@livinginsouthreno.com](mailto:Ken@livinginsouthreno.com)** Nevada License S.168655 **Co-Host: Elena Boland, Senior Loan Officer** Wholesale Mortgage Services | NMLS #373615 [**📲 **Call or text:****](mailto:Ken@LivingInSouthReno.com)**[775-825-1600](tel:+17758251600)** [https://wmsreno.com](https://wmsreno.com/) #PhysicianLoans #DoctorMortgage #RenoRealEstate #RenoHomes #SouthReno #LivingInSouthReno #NevadaRealEstate ### Leave a Comment ### The Angst Real Estate Team ### Sign Up for Our Newsletter ![haute-properties\_angst-logo\_white@2x](https://blog.livinginsouthreno.com/hs-fs/hubfs/haute-properties_angst-logo_white@2x.png?width=248&height=150&name=haute-properties_angst-logo_white@2x.png "haute-properties_angst-logo_white@2x") Ken Angst REALTOR®, P.E. Nv Lic S.168655 Haute Properties NV 5470 Kietzke Lane, Suite 300 Reno, NV 89511 Email: [angstrealestateteam@gmail.com](mailto:angstrealestateteam@gmail.com) Cell: [(775) 525-0309](tel:+17755250309) **MLS® Disclaimer.** The data relating to real estate for sale on this web site comes in part from the Broker Reciprocity program of the Northern Nevada Regional Multiple Listing Service®. Real estate listings held by brokerage firms other than the owner of this site are marked with the Broker Reciprocity logo and detailed information about those listings includes the name of the listing brokerage. Copyright 2022 of the Northern Nevada Regional Multiple Listing Service MLS. 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