Three Physician Loan Myths That Cost Residents Real Money
Zero down doesn't always mean zero cost — and the biggest mistake residents make has nothing to do with the loan itself.
Myth 1: All physician loans are the same. They aren't — rate, PMI treatment, and student-loan calculation vary widely between lenders. A 0.375% rate difference on $600K is roughly $50K over the life of the loan.
Myth 2: You must be an attending to qualify. Most programs accept a signed employment contract with a start date within 60–90 days. Residents and fellows qualify at reduced income figures with the same 0–10% down structure.
Myth 3: Student loans don't matter. They matter — but the way they're counted matters more. IBR/PAYE payments as low as $0 are allowed on many physician programs, versus 0.5%–1% of balance on conventional.
This article is for informational purposes and is not an offer to lend or a commitment to make a loan. All loans subject to underwriting approval, program guidelines, and appraisal. Equal Housing Opportunity.