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.
About the author — I'm Everald L. Johnson, a Colorado mortgage broker with Johnson Home Loans and Financial Services, LLC (NMLS #2443040), powered by Zero Point Mortgage Services. I work with buyers, homeowners and investors across Denver, Aurora, Colorado Springs, Parker, Lone Tree, Castle Rock, Highlands Ranch, Centennial, Littleton and the wider Front Range. Call or text (774) 297-8312 and we'll run your actual numbers together.
Frequently asked questions
- Do physician loans really require zero down in Colorado?
- Many allow very low or no down payment, but zero down does not mean zero cost. Closing costs and prepaids still apply.
- Who qualifies for a physician loan?
- Typically MD, DO, DDS, DMD, PharmD, DVM, OD, DPM, CRNA, NP, PA and RN, varying by lender. Residents, fellows, interns and attendings are all eligible.
- Can I use it for an investment property?
- No. These programs allow primary residences and second homes only.
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.