Physician Loans in Texas: A Complete Guide for Medical Professionals

Many physicians earn strong salaries early in their careers but haven’t had time to build a large down payment. Others are relocating for residency, fellowship, or a new attending role and don’t want to spend years renting just to meet traditional mortgage rules.

Physician mortgage loans exist to solve that mismatch. They allow qualified medical professionals to buy homes with little to no money down, no PMI, and interest rates that stay competitive with top-tier conventional loans—without forcing unnecessary delays or cash constraints.

In Texas, physician loans are especially powerful. Houston, Dallas, and Austin attract doctors at every career stage, and home prices in the neighborhoods physicians actually want often move faster than savings can accumulate. Physician home loans allow doctors to buy when life and career timing make sense—without waiting years just to check a down‑payment box.

This guide explains what physician loans are, how they work in practice, who qualifies, how much house makes sense, and how doctors are using physician mortgage loans across Texas today.

What Is a Physician Loan?

A physician loan—also called a physician mortgage loan or doctor mortgage loan—is a home loan designed specifically for medical professionals.

The defining features are simple and borrower‑focused:

Physician loans typically require little to no down payment, often 0–5% and sometimes 10% on higher balances. Unlike conventional loans, they do not require private mortgage insurance, even with minimal cash down.

Interest rates are often very close to conventional loan pricing for well‑qualified borrowers. In some cases, they can even be lower than a conventional rate when a physician works with a mortgage broker who can compare multiple physician loan programs and identify the most aggressive option. Lenders are comfortable offering competitive pricing because physicians rarely miss payments and tend to improve financially over time.

Physician home loans are available for primary residences and are commonly used by residents, fellows, and attending physicians.

How Do Physician Mortgage Loans Work?

From a borrower’s perspective, physician mortgage loans work like a standard mortgage.

You choose a home. You lock a rate. You make monthly payments.

The difference shows up in how early and how efficiently you can buy.

Most physician loans allow buyers to move forward with minimal cash out of pocket, preserving savings for reserves, investments, or life transitions. PMI is waived, which keeps monthly payments lower than many low‑down‑payment conventional loans.

Many programs allow physicians to qualify with a signed employment contract, making it possible to buy before starting a new job or relocating for work.

For borrowers, the takeaway is straightforward: physician loans remove friction. They are built to match how doctors actually live and earn.

Physician Loan Interest Rates

Physician mortgage loans are priced the way they are because doctors are among the strongest borrowers in the market.

For well‑qualified physicians, rates are typically at or very close to the best conventional loan pricing available on a 20% down loan. In many cases, the difference between a physician loan and a top‑tier conventional rate is negligible—and sometimes nonexistent—despite the physician loan requiring far less cash upfront.

Lenders are comfortable offering aggressive pricing because physicians have stable employment, predictable income growth, and extremely low delinquency rates. Over time, doctors tend to earn more, not less, which further reduces risk from a lender’s perspective.

The practical result is simple: physicians can often secure near‑conventional or fully comparable rates without putting 20% down or paying PMI. That combination is exactly why these programs exist.

When a physician works with a mortgage broker who can shop multiple lenders, it’s common to find physician loan rates that are on par with—or even better than—standard conventional options, while still preserving liquidity early in a career.

Who Qualifies for a Physician Loan?

Physician mortgage loans are available to a defined group of medical professionals whose careers show long‑term stability and strong income durability:

Medical Doctors (MD and DO) – Residents, fellows, and attending physicians are the core audience for physician loans. These programs are commonly used early in a doctor’s career when income is high but savings are still catching up.

Dentists – Both general dentists and specialists frequently qualify for physician mortgage loans, particularly when transitioning into practice ownership or relocating for a new role.

Veterinarians – Veterinary professionals often qualify due to consistent demand and predictable income paths, especially in established practices.

Podiatrists – Podiatrists are commonly included in physician loan programs because their licensing and income profiles closely mirror other medical specialties.

Optometrists – Optometrists with stable employment or ownership roles are often eligible, depending on lender guidelines.

Advanced Practice Providers (CRNAs, Nurse Practitioners, Physician Assistants) – Some lenders extend physician loan programs to advanced practice providers, particularly CRNAs, due to strong compensation and job stability.

Eligibility varies by lender, but these programs are built for licensed medical professionals with proven, in‑demand careers rather than general borrowers.

How Much House Can I Afford With a Physician Loan?

Physician loans often allow doctors to buy more home sooner—but that does not mean buying the maximum amount offered is a good idea.

Affordability should be based on comfort and flexibility, not just approval.

In Texas, property taxes are a major factor. A home price that feels reasonable on paper can become restrictive once taxes and insurance are added.

A well‑structured physician loan supports long‑term savings, student loan repayment, and lifestyle choices—not just the purchase itself.

Examples of Physician Mortgage Loans in Texas

Houston Physician Loan Example: Bellaire

A cardiologist relocating to Houston accepts a position at Houston Methodist in the Texas Medical Center and wants to live close to work.

They target Bellaire, where renovated single‑family homes routinely trade around $850,000–$950,000. Saving 20% would require $170,000–$190,000 in cash and delay buying for years.

Using a physician mortgage loan, the buyer purchases an $900,000 home with 5% down ($45,000). The loan is structured at 6.125%, with no PMI. At the same time, the average conventional rate sits around 6.08%, meaning the physician loan pricing is effectively on par—while requiring dramatically less cash.

The physician keeps reserves intact, avoids PMI entirely, and buys close to the Medical Center early in an attending career. This is one of the most common physician loan use cases in Houston.

Dallas Physician Loan Example: Plano

An orthopedic surgeon joins UT Southwestern and plans to settle in Plano for schools and long‑term livability.

Homes in target neighborhoods are selling between $1,050,000 and $1,200,000, well into jumbo territory. A conventional structure would require six figures tied up in a down payment.

With a jumbo physician mortgage loan, the buyer purchases a $1.1M home with 10% down ($110,000) at 6.125%, again without PMI. Comparable conventional jumbo rates are averaging around 6.08%, making the physician loan pricing extremely competitive while preserving liquidity.

In Dallas‑Fort Worth, physician loans are frequently used to access strong school districts and larger homes without sacrificing flexibility early in a medical career.

Austin Physician Loan Example: Mueller

An emergency medicine physician working at St. David’s Medical Center wants to buy in Mueller, where move‑in‑ready homes commonly trade between $750,000 and $850,000.

Waiting to save a full down payment risks being priced out as values continue to move. Using a physician loan, the buyer purchases an $800,000 home with 5% down ($40,000) at 6.125%, no PMI.

With conventional rates averaging 6.08%, the physician loan delivers nearly identical pricing while requiring far less cash upfront. The result is immediate homeownership without financial strain.

In Austin, physician mortgage loans are often about timing—allowing qualified doctors to act decisively without stretching finances or delaying life plans.

Physician Mortgage Lenders in Texas

Not all physician mortgage lenders offer the same terms. Down payment limits, loan size caps, eligible professions, and pricing can vary meaningfully from one lender to the next—even within the same week.

That’s why working with a mortgage broker matters, especially for professional mortgage loans like physician loans. A broker isn’t tied to a single bank’s version of a physician program. Instead, they can compare multiple physician loan options at once and match the borrower to the lender offering the best combination of rate, structure, and flexibility for that specific scenario.

At LendFriend Mortgage, physician loans are a core specialty—not a side product. The team works with doctors across Texas every day, from residents buying their first home to attending physicians purchasing high‑balance properties in competitive markets like Houston, Dallas, and Austin.

LendFriend’s approach is simple and physician‑centric: understand the buyer’s career stage, target neighborhood, and long‑term plans first, then source the most competitive physician loan available across dozens of lenders. That process often uncovers pricing and structures individual banks simply can’t offer on their own.

For physicians, that means fewer surprises, clearer options, and a smoother path to closing. It’s not about pushing one lender’s product—it’s about delivering a physician loan that actually fits the doctor’s life and financial goals.

The Bottom Line

Physician loans work because doctors are strong borrowers.

In Texas, where housing markets move quickly and medical careers evolve fast, physician mortgage loans give doctors the ability to buy homes earlier, with less friction, and without unnecessary financial strain.

When structured correctly, physician loans are a strategic advantage.

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