Doctor Mortgage Calculator

Physician Mortgage Calculator

A physician mortgage exists because standard underwriting misreads a doctor's finances. A newly-qualified physician has enormous student debt, almost no savings, and an employment contract promising a large income that has not started yet — which a conventional lender scores as high risk and a specialist lender scores as very low risk.

What the Programme Changes

	Conventional	Physician
Down payment	5–20%	0–10%
Private mortgage insurance	Required under 20%	None
Student debt in DTI	Full payment counted	IBR payment, or excluded
Income proof	Pay stubs	Signed employment contract
Loan limits	Conforming caps	Often well above

Waiving PMI is the largest single saving. On a $500,000 loan at 0.5–1% annually, that is $2,500–$5,000 a year for as long as you would have carried it.

The Student-Debt Treatment Matters More

A resident with $250,000 of student loans has a conventional payment of roughly $2,600 a month counted against their debt-to-income ratio, which disqualifies them outright. Counting the income-driven payment instead — a few hundred dollars — or excluding deferred loans entirely is what makes the approval possible.

Who Qualifies

MD, DO, DDS, DMD and DVM almost always. Many programmes extend to pharmacists, optometrists, podiatrists, CRNAs and physician assistants, and some to attorneys and veterinarians. The list is lender-specific and changes.

What It Costs

The rate is typically 0.25–0.5 percentage points above a conventional mortgage. On $500,000 over 30 years, a 0.25-point premium is roughly $70 a month — usually less than the PMI it replaces, so the programme wins on cash flow from day one.

The Real Risk Is Buying Too Much

Zero down payment plus an income that has not started is exactly the combination that produces an underwater mortgage after a specialty change or a move. Attending physicians change jobs at a high rate in the first five years, and selling with no equity means bringing cash to the closing table.

Borrow against the income you have, not the one the contract promises.

Where the Money Goes

On $500,000 at 6.25% over 30 years, paying $3,079 a month:

Point	Principal repaid	Interest paid	Balance
Year 3	$18,732	$92,097	$481,268
Year 8	$54,294	$222,779	$445,706
Year 15	$140,949	$413,197	$359,051
Year 23	$279,255	$551,963	$220,745
Year 30	$500,000	$608,291	$0

Early payments are mostly interest. That is not a fee structure — it is arithmetic: interest accrues on the outstanding balance, which starts at its largest. It is also why an extra payment made early saves far more than the same payment made late.

What a Rate Change Costs

Rate	Monthly	vs 6.25%	Total repaid
5.25%	$2,761	-$318	$993,967
5.75%	$2,918	-$161	$1,050,431
6.25%	$3,079	—	$1,108,291
6.75%	$3,243	+$164	$1,167,477
7.25%	$3,411	+$332	$1,227,917

Half a percentage point moves the monthly payment by $164 and the total by $59,186. Shopping three lenders usually beats any amount of negotiating on price.