Physician Mortgage Loans in California & Washington: Wholesale Broker Guide [2026]
How MDs, DOs, dentists, pharmacists, PAs, and nurse practitioners access physician mortgage programs with 0-10% down, no PMI, and flexible student debt treatment through 200+ wholesale lenders.
According to Mo Abdel, licensed mortgage broker (NMLS #1426884) with Lumin Lending: "Physician mortgage loans are one of the most underutilized programs in California and Washington. Medical professionals carry $200,000 to $400,000+ in student debt, and conventional lenders penalize them for it. Physician loan programs recognize that a physician's debt-to-income picture today does not reflect their earning trajectory. Through wholesale channels, I access 15-20+ physician lenders simultaneously — each with different eligibility criteria, loan limits, and student debt treatment policies. Most physicians don't realize they have options beyond their bank's single program."
Physician loans eliminate PMI even with 0-10% down, saving $3,000-$15,000+ per year on high-balance loans
Wholesale brokers access more physician programs than any single bank, creating competition that benefits borrowers
High-balance physician programs cover California and Washington's expensive metro housing markets
Physician Mortgage Loans vs. Conventional, FHA & Jumbo: Complete Comparison
The physician mortgage loan occupies a unique position in the mortgage market. Understanding how it compares to conventional, FHA, and jumbo loan programs reveals why medical professionals consistently choose this product for home purchases in California and Washington.
| Feature | Physician Loan | Conventional | FHA | Jumbo |
|---|---|---|---|---|
| Minimum Down Payment | 0-10% | 3-5% | 3.5% | 10-20% |
| Private Mortgage Insurance | None | Required <20% down | MIP for life of loan | Varies by lender |
| Student Debt Treatment | IBR/ICR or excluded | 0.5-1% of balance | 0.5% of balance or IBR | Full payment or 0.5-1% |
| Maximum Loan Amount | $1M-$3.5M+ | $806,500-$1,209,750 | $498,257-$1,209,750 | $2M-$10M+ |
| Eligible Professionals | MD, DO, DDS, PA, NP+ | All borrowers | All borrowers | All borrowers |
| Employment Contract Qualifying | Yes — residents/fellows | No | No | Rarely |
| Minimum Credit Score | 680-720 | 620-680 | 580 | 700-740 |
| Closing Timeline | 21-35 days | 30-45 days | 45-60 days | 30-45 days |
| Rate Competitiveness | Competitive with conventional | Market standard | Market standard | Slightly above conventional |
| Reserve Requirements | 0-6 months | 0-6 months | None | 6-24 months |
| Property Types | Primary residence only | Primary, 2nd, investment | Primary residence only | Primary, 2nd, investment |
How to Qualify for a Physician Mortgage Loan: Step-by-Step
Verify Professional Eligibility
Confirm your degree (MD, DO, DDS, DMD, OD, DPM, PharmD, PA, NP, CRNA) qualifies with target physician lenders. Each lender accepts different designations.
Gather Employment Documentation
Provide your employment contract, offer letter, or verification of employment. Residents and fellows can use match letters or signed contracts showing start date and salary.
Document Student Loan Status
Collect student loan statements showing current balances, repayment status (deferred, IBR, standard), and monthly payment amounts. Lenders treat each repayment plan differently.
Submit to Multiple Physician Lenders
Your wholesale broker submits your file to 15-20+ physician lenders simultaneously, comparing rates, terms, down payment requirements, and student debt treatment for your specific scenario.
Compare Loan Options
Review side-by-side physician loan offers including rate, closing costs, lender credits, down payment, and total monthly payment. Select the program that aligns with your financial goals.
Lock Rate and Close
Lock your rate with the selected physician lender. Complete appraisal, title, and underwriting. Most physician loan closings complete in 21 to 35 days.
What Makes Physician Mortgage Loans Different From Standard Mortgages?
Physician mortgage loans exist because traditional lending guidelines systematically disadvantage medical professionals. A physician graduating from medical school carries an average of $203,062 in educational debt according to the Association of American Medical Colleges (AAMC). Under conventional loan guidelines, lenders calculate student loan payments as 0.5% to 1% of the total balance for deferred loans. On $250,000 in student debt, that adds $1,250 to $2,500 per month to the borrower's debt-to-income ratio — even if the physician is making $0 monthly payments under an income-based repayment plan.
Physician mortgage lenders recognize that medical professionals occupy a fundamentally different financial trajectory than the general population. The Bureau of Labor Statistics reports median physician compensation exceeding $229,000 annually, with specialists earning $300,000 to $500,000+. This earning potential, combined with historically low physician default rates (under 0.2%), creates a risk profile that justifies the favorable loan terms physician programs provide.
Three structural advantages separate physician loans from every other mortgage product available in California and Washington:
- No PMI regardless of down payment — conventional loans require PMI with less than 20% down, costing $250 to $1,250+ per month on high-balance loans. Physician loans eliminate this cost entirely.
- Student debt flexibility — lenders use the actual IBR/ICR payment or exclude deferred loans, rather than calculating a hypothetical payment based on total balance.
- Employment contract qualifying — residents, fellows, and newly hired attendings can close on a home 60-90 days before their start date using a signed employment contract as qualifying income.
How Do Physician Mortgage Lenders Treat Student Loan Debt?
Student debt treatment is the single most impactful difference between physician mortgage programs and conventional financing. The way a lender counts student loan debt directly determines how much home a physician can afford. Here is how different physician lenders approach student debt in 2026:
| Student Debt Treatment Method | Monthly DTI Impact ($250K Balance) | Purchasing Power Effect | Availability |
|---|---|---|---|
| Exclude Deferred Loans Entirely | $0/month | Maximum purchasing power | Select physician lenders |
| Use Actual IBR/ICR Payment | $0-$400/month | Near-maximum purchasing power | Most physician lenders |
| 0.5% of Total Balance (Conventional) | $1,250/month | Reduces by $200K-$300K | Fannie Mae / Freddie Mac |
| 1% of Total Balance (Conservative) | $2,500/month | Reduces by $400K-$500K | Some portfolio lenders |
The difference between a physician lender excluding deferred student loans and a conventional lender using 1% of the balance is staggering. A physician with $300,000 in deferred student debt and a $300,000 annual salary could qualify for approximately $1,200,000 to $1,500,000 with a physician lender versus $700,000 to $900,000 with a conventional lender — a purchasing power gap of $300,000 to $600,000 or more.
For physicians in California's high-cost markets like Orange County (median home price approximately $1,100,000), Los Angeles, or San Francisco, or Washington's Eastside communities like Bellevue and Kirkland, this student debt treatment difference determines whether homeownership is achievable at all.
Which Medical Professionals Qualify for Physician Mortgage Loans?
Physician mortgage eligibility extends well beyond MDs. The range of qualifying professionals varies significantly between lenders, which is precisely why working with a wholesale broker who accesses multiple physician programs creates a meaningful advantage. Here is a breakdown of eligible designations and their typical lender acceptance:
Universally Accepted (Nearly All Physician Lenders)
- MD — Medical Doctor
- DO — Doctor of Osteopathic Medicine
- DDS — Doctor of Dental Surgery
- DMD — Doctor of Dental Medicine
- OD — Doctor of Optometry
Widely Accepted (Majority of Physician Lenders)
- DPM — Doctor of Podiatric Medicine
- PharmD — Doctor of Pharmacy
- PA — Physician Assistant (Master's+)
- NP — Nurse Practitioner (DNP/MSN)
- CRNA — Certified Registered Nurse Anesthetist
Limited Acceptance (Select Physician Lenders)
- JD — Juris Doctor (Attorney)
- DVM — Doctor of Veterinary Medicine
- PhD — Select clinical/research fields
- DPT — Doctor of Physical Therapy
Wholesale Broker Advantage
A bank offers its single physician program — you either qualify or you don't. A wholesale broker matches your specific designation to the lenders that accept it.
Example: A CRNA applying at a bank that only covers MDs and DOs gets denied. Through a wholesale broker, that same CRNA accesses 5-8 lenders with CRNA-eligible physician programs.
Physician Loans for Residents, Fellows & New Attendings
One of the most powerful features of physician mortgage programs is the ability to qualify using a future employment contract rather than current income history. This applies directly to three groups that traditional lenders struggle to serve:
Medical Residents
Newly matched residents can close on a home purchase using their residency contract as qualifying income. Most physician lenders accept contracts showing the start date, salary, and program duration. Residents earn $60,000 to $75,000 during training, which qualifies for homes in many California and Washington markets — especially when combined with a physician loan's favorable student debt treatment.
Timing: Close 60-90 days before residency start date. Ideal for Match Day planning.
Fellows
Fellowship positions carry slightly higher salaries ($70,000 to $95,000) and longer established medical careers. Fellows who completed residency in a different city and are relocating for fellowship training use their fellowship contract to qualify. Physician lenders view fellowship contracts the same as residency contracts for qualifying purposes.
Advantage: Fellowship income + physician loan terms = homeownership during sub-specialty training.
New Attending Physicians
Physicians transitioning from training to practice experience the largest income jump in any profession. An attending signing a $350,000+ employment contract can qualify for a physician mortgage immediately — before receiving a single paycheck. This allows the physician to purchase a home concurrent with starting their attending position, avoiding months of renting at attending-level housing costs.
Key: Signed employment contract with compensation details is the qualifying document.
Conventional lenders require 2 years of tax returns and W-2s showing consistent income. A resident transitioning to a $400,000 attending salary has no tax returns reflecting that income. Physician mortgage lenders solve this gap by qualifying on the contract, not the history.
Why Wholesale Brokers Access More Physician Mortgage Programs Than Banks
The mortgage industry operates through two channels: retail (banks and credit unions) and wholesale (mortgage brokers). The structural difference between these channels directly impacts how many physician loan options a borrower can access.
A retail bank — even one with a physician mortgage program — offers exactly one physician loan product with fixed terms. The bank's physician program has specific eligibility criteria, set down payment tiers, a defined list of qualifying designations, and one approach to student debt treatment. If the borrower's profile does not fit that single program, the bank declines the application.
A wholesale mortgage broker like Mo Abdel accesses 200+ total lenders, of which 15-20+ actively offer physician mortgage programs. Each physician lender has different:
- Eligible professional designations — some accept only MDs and DOs; others include PAs, NPs, CRNAs, and PharmDs
- Maximum loan amounts — ranging from $1,000,000 to $3,500,000+ depending on the lender
- Down payment structures — 0% down up to $750K at one lender versus 0% down up to $1M at another
- Student debt treatment policies — IBR payment at one lender, excluded deferred loans at another
- Rate pricing — each lender prices physician loans independently, creating natural competition
- Closing timelines — 21 days at one lender versus 35 days at another
This structural advantage is not marginal — it is transformative. A wholesale mortgage broker creates a competitive market between physician lenders where none otherwise exists. The result is better rates, more flexible terms, and higher approval rates for the physician borrower.
California & Washington Physician Home Buying Scenarios
California and Washington rank among the highest cost-of-living states in the nation, making physician mortgage programs particularly valuable in these markets. Here is how physician loans apply to real scenarios across major CA and WA metro areas:
| Metro Area | Approx. Median Home Price | 5% Down (Physician Loan) | 20% Down (Conventional) | Annual PMI Savings |
|---|---|---|---|---|
| Orange County, CA | $1,100,000 | $55,000 | $220,000 | $5,225-$15,675/yr |
| Los Angeles, CA | $950,000 | $47,500 | $190,000 | $4,513-$13,538/yr |
| San Francisco Bay Area, CA | $1,400,000 | $70,000 | $280,000 | $6,650-$19,950/yr |
| San Diego, CA | $925,000 | $46,250 | $185,000 | $4,394-$13,181/yr |
| Seattle / King County, WA | $875,000 | $43,750 | $175,000 | $4,156-$12,469/yr |
| Bellevue / Eastside, WA | $1,350,000 | $67,500 | $270,000 | $6,413-$19,238/yr |
| Sacramento, CA | $550,000 | $27,500 | $110,000 | $2,613-$7,838/yr |
In Orange County alone, a physician purchasing with 5% down through a physician mortgage program saves $165,000 in upfront capital compared to a 20% conventional down payment — and avoids $5,225 to $15,675 per year in PMI. Over 5 years, that represents $191,000 to $243,000 in combined savings.
California & Washington Physician Salary Context
According to Bureau of Labor Statistics data, California and Washington physicians rank among the highest-compensated in the nation:
- Primary Care (CA): $240,000-$320,000 median compensation
- Specialists (CA): $350,000-$550,000+ median compensation
- Primary Care (WA): $230,000-$310,000 median compensation
- Specialists (WA): $340,000-$530,000+ median compensation
- Residents/Fellows (CA & WA): $60,000-$95,000 during training
People Also Ask: Physician Mortgage Loans in California & Washington
Are physician mortgage loans a good deal?
Physician mortgage loans save medical professionals thousands annually by eliminating PMI and offering low down payments on high-balance loans.
Can dentists get physician mortgage loans in California?
Yes. DDS and DMD holders qualify with nearly all physician mortgage lenders for homes throughout California and Washington.
Do physician loans have higher interest rates?
Physician mortgage rates are competitive with conventional rates due to historically low physician default rates under 0.2%.
Can I get a physician mortgage with bad credit?
Most physician lenders require 680-720 minimum credit scores. Some programs accept 660 with compensating factors like lower DTI.
Do physician loans work for investment properties?
No. Physician mortgage loans are restricted to primary residences only. Investment properties require conventional or DSCR financing.
How long do I have to practice medicine to qualify?
Zero years. Residents and new attendings qualify using signed employment contracts before receiving their first paycheck.
Can nurse practitioners get physician mortgage loans?
Yes. Multiple wholesale physician lenders accept NPs with DNP or MSN degrees for full physician mortgage benefits.
What happens if I leave medicine after getting a physician loan?
Nothing changes. The loan terms remain fixed regardless of career changes. There is no ongoing practice requirement.
Frequently Asked Questions: Physician Mortgage Loans
What is a physician mortgage loan and how does it work?
A physician mortgage loan is a specialized home loan designed for medical professionals. These loans allow eligible doctors, dentists, and other healthcare providers to purchase homes with as little as 0% to 10% down payment and no private mortgage insurance (PMI). Lenders offer these terms because physicians have high earning potential and historically low default rates. The loans account for medical school debt differently than conventional programs, often excluding deferred student loans or using income-based repayment amounts instead of the full balance.
Which medical professionals qualify for physician mortgage loans in California and Washington?
Eligible professionals vary by lender but commonly include Medical Doctors (MD), Doctors of Osteopathic Medicine (DO), Doctors of Dental Surgery (DDS), Doctors of Dental Medicine (DMD), Doctors of Optometry (OD), Doctors of Podiatric Medicine (DPM), Doctors of Pharmacy (PharmD), Physician Assistants (PA), Nurse Practitioners (NP), and Certified Registered Nurse Anesthetists (CRNA). Some lenders also extend eligibility to Juris Doctors (JD) and veterinarians (DVM). A wholesale broker accesses 15-20+ physician lenders to find programs matching each professional designation.
Can medical residents and fellows qualify for physician mortgage loans?
Yes. Most physician mortgage lenders allow residents and fellows to qualify using an employment contract or verification of future income. Borrowers within 60 to 90 days of starting a residency or fellowship program can close on a home before their first paycheck. The lender uses the contracted salary as qualifying income. This allows newly matched residents to purchase homes near their training hospital without waiting years to build traditional employment history.
How do physician mortgage lenders treat student loan debt?
Physician mortgage lenders treat student debt more favorably than conventional programs. Common approaches include excluding deferred student loans entirely from debt-to-income calculations, using the actual income-based repayment (IBR) or income-contingent repayment (ICR) amount rather than 0.5% to 1% of the total balance, and accepting documentation of employer loan repayment assistance programs. These flexible student debt calculations allow physicians with $200,000 to $400,000+ in medical school debt to qualify for home purchases that conventional programs would deny.
What is the maximum loan amount for physician mortgage loans in California?
Maximum physician mortgage loan amounts in California range from $1,000,000 to $3,500,000+ depending on the lender, with some programs extending to $5,000,000 for well-qualified borrowers. High-cost California markets like Orange County, Los Angeles, San Francisco, and San Diego require higher loan amounts, making physician mortgage programs particularly valuable. Wholesale brokers access lenders with the highest physician loan limits for California metro areas.
Do physician mortgage loans require private mortgage insurance (PMI)?
No. Physician mortgage loans do not require private mortgage insurance regardless of down payment amount. A conventional loan with less than 20% down payment requires PMI costing 0.3% to 1.5% of the loan amount annually. On a $1,000,000 physician mortgage with 5% down, eliminating PMI saves $3,000 to $15,000 per year compared to a conventional loan. This is one of the most significant financial advantages of physician mortgage programs.
How do physician mortgage rates compare to conventional mortgage rates?
Physician mortgage rates are competitive with conventional mortgage rates and are sometimes identical to conforming rates for well-qualified borrowers. While physician loans carry slightly more lender risk due to lower down payments and high loan amounts, the historically low default rate among physicians (under 0.2% according to industry data) keeps rates competitive. A wholesale broker compares physician mortgage rates across 15-20+ lenders to identify the most competitive pricing for each scenario.
Can I use a physician mortgage loan to buy a home in both California and Washington?
Yes. Mo Abdel is licensed to originate physician mortgage loans in both California (DRE #02291443) and Washington. As a wholesale broker with access to 200+ lenders, Mo shops physician loan programs across multiple states. Whether purchasing in Orange County, Los Angeles, San Francisco, Seattle, Bellevue, or any other CA or WA market, the same physician mortgage benefits apply including low down payment, no PMI, and flexible student debt treatment.
What down payment options are available for physician mortgage loans?
Physician mortgage down payment options range from 0% to 10% depending on the loan amount and lender. Common structures include 0% down on loans up to $750,000 to $1,000,000, 5% down on loans up to $1,000,000 to $1,500,000, and 10% down on loans up to $2,000,000 to $3,500,000. None of these options require PMI. Down payment minimums increase as loan amounts increase, with each lender setting different thresholds. A wholesale broker identifies which lenders offer the lowest down payment for the target purchase price.
Why should I use a wholesale mortgage broker for a physician loan instead of my bank?
Most banks offer 1 to 2 physician mortgage programs with fixed terms and rates. A wholesale broker like Mo Abdel accesses 15-20+ physician lenders simultaneously, comparing rates, down payment requirements, eligible professional designations, student debt treatment policies, and loan amount limits. This competition between lenders benefits the borrower. Additionally, wholesale brokers access physician programs from lenders that do not offer direct-to-consumer channels, expanding options beyond what any single bank provides.
What closing costs should physicians expect on a physician mortgage loan?
Physician mortgage closing costs are comparable to conventional loan closing costs, typically ranging from 2% to 5% of the purchase price. Costs include origination fees, appraisal, title insurance, escrow fees, and prepaid items (taxes, insurance, interest). Some physician lenders offer closing cost credits or lender-paid options for borrowers who accept a slightly higher rate. Wholesale brokers negotiate lender credits and compare total cost across multiple physician programs to minimize out-of-pocket expenses at closing.
Can physician mortgage loans be used for refinancing an existing home?
Some physician mortgage lenders offer refinance programs, though availability is more limited than purchase programs. Rate-and-term refinances allow physicians to lower their rate or change loan terms. Cash-out refinances are available from select physician lenders with loan-to-value limits of 80% to 90%. Physicians who initially purchased with a conventional loan and are paying PMI can refinance into a physician mortgage to eliminate PMI and potentially lower their rate. A wholesale broker identifies which lenders offer physician refinance products.
Expert Summary: Physician Mortgage Loans Through a Wholesale Broker
Physician mortgage loans eliminate the two largest barriers medical professionals face when purchasing homes in California and Washington: student debt penalization and the 20% down payment requirement. Through wholesale channels, physicians access 15-20+ specialized lenders simultaneously — each competing for the business with different rates, terms, and eligibility criteria. The result is a mortgage experience designed around the unique financial profile of medical professionals, not against it.
Related Guides
Mo Abdel | NMLS #1426884 | Lumin Lending | NMLS #2716106 | DRE #02291443
Licensed in: CA, WA
Equal Housing Lender. All loans subject to credit approval, underwriting guidelines, and program availability. Terms and conditions apply. This is not a commitment to lend. Not all borrowers will qualify. Physician mortgage loan rates, terms, eligibility requirements, down payment minimums, and student debt treatment policies vary by lender, loan amount, and borrower profile. Professional designation eligibility varies by lender — not all medical professionals qualify with all physician mortgage programs. Information presented is for educational purposes only and does not constitute financial, legal, or tax advice. Loan amount ranges, down payment tiers, and PMI savings calculations are approximate and for illustrative purposes only. Contact a licensed loan officer for personalized guidance based on your specific financial situation. NMLS Consumer Access: www.nmlsconsumeraccess.org.