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Welcome to the latest episode of the Physician Cents Podcast, where we explore complex financial topics tailored specifically for physicians. Whether you're a medical student, resident, fellow, or attending physician, you're going to find valuable insights that can help you increase your financial IQ, further your financial journey, and improve your overall well-being. Hosted by Chad Chubb and Tyler Olson, let’s dive in!
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Buying a home as a doctor shouldn't feel like you need a second medical degree just to understand the mortgage process. If you’ve ever wondered why your friends (who aren’t drowning in med school debt) waltz through getting a home loan, while you hit every obstacle known to man, you’re not alone. You’d think being a doctor, having a strong income, and squeaky-clean credit would make buying a house simple, right? Sorry, doc, not so fast. Physician mortgages are a bit like that mythical unicorn everyone talks about—sounds magical, but the details never seem clear.
This post is your inside scoop on the stuff “no one tells you.” We’re talking the real struggles physicians face buying homes, why a physician mortgage isn’t just a fancier marketing gimmick, how temporary rate buy-downs can work for (or against) you, and how to avoid the “fake” doctor mortgages circling the web. Grab your stethoscope—let’s diagnose what’s really going on when you try to buy a home as a physician.
Let’s start with the basics. What on earth is a physician mortgage, anyway? Simple—these are home loans designed with doctors in mind. Not your run-of-the-mill, cookie-cutter mortgage with paperwork stacked taller than your residency workload.
Here are the standout features (yes, these make a difference):
Who’s this tailored for? Everyone from med students and residents looking at their first home, to new attendings relocating for their “real job,” to established physicians finally ready to stop renting.
It’s a fix for all the financial fun that comes with a medical career. And yes, “physician mortgage” is the actual term—like a regular mortgage on steroids.
Let’s debunk a huge myth: just because you’re a high-income, super-creditworthy doc doesn’t mean banks will roll out the red carpet. Not even close.
You hit the weirdest roadblocks:
On top of that, the people writing the mortgage rules? They didn’t exactly have the medical career path in mind. The result: a system often out of sync with how doctors earn, pay off debt, and move for training or jobs.
You know what’s fun about the current housing market? Oh, just interest rates that hang out around 7%. Not exactly the “good old days” of ultra-cheap money.
But here’s the real scoop: elevated mortgage rates don’t last forever. They bounce around based largely on inflation. When rates are high, that’s usually a sign inflation is hot. Once inflation chills out, rates tend to follow.
So yeah, it’s rough right now, but nobody’s expecting this to last a full 30 years. The pain you feel at closing? It’s a temporary period—not a lifelong sentence.
Everyone loves to haggle down the price on a house. But did you know there’s a not-so-secret weapon twice as powerful? Say hello to seller concessions.
What are they? Money the seller gives you (usually at closing) to help cover certain costs. Here’s the plot twist: you can often use that chunk of cash to buy down your mortgage interest rate, either temporarily (think a few years) or for the life of the loan.
Now, let’s compare the impact:
Seller concessions are bargain gold, especially in places like Florida (outside Miami), where inventory is up and sellers get a little desperate. A sharp mortgage pro will help you spot where the market has “give,” so you don’t leave money on the table.
Stepped payment programs (aka temporary mortgage buy-downs) sound like a tongue twister, but they’re simple. Picture this:
Let’s throw down some numbers:
Imagine you’re looking at a $1M home with a 7% rate. You win a $20,000 seller concession and use it for a 3-2-1 buy-down. Year one, your payment is as if your rate was 4%. Year two, it’s like you got 5%. Year three, you’re hanging at 6%. Year four, the party’s over—it’s at the original 7%. The idea: save the most when it stings the most (in the early years, when you’re settling into your career or paying down other debt).
Not forever, but enough to breathe a little easier while rates (hopefully) drop.
Let’s bring in a real story. Picture a brand-new attending just out of residency: earning good money, but still freaked out by student loans and a new mortgage. The dream? Buy a home, but keep the monthly payment as low as possible at first.
Their solution: negotiate a chunky seller concession (think $20,000) and use it to buy down the mortgage rate for three years. Now, instead of paychecks vanishing into a black hole, there’s a cushion—$1,100 a month saved in year one. That means this doc can actually invest early and pay down debt instead of just treading water.
But here’s the catch: payments start climbing in year two and three, right alongside your income (hopefully). The most important part: you need to plan for the jump. Think of this as a “payment timeline”:
Year 1: $1,100 lower payment
Year 2: Payment pops up by a few hundred
Year 3: Up again, but still below the full freight
Year 4: Full payment kicks in
It’s not magic, it’s just front-loading comfort when you need it most.
Okay, time for the unglamorous side. With these buy-downs, banks don’t hand out credit just because you can scrape together the down payment. You still need to qualify at the full (often scary) “note” rate—the highest your rate will ever be.
What’s the risk? Complacency. It’s easy to love year one’s low payment, but you need a mental note (preferably in red Sharpie) for the higher payment coming down the pike.
This works a bit like an adjustable-rate mortgage, except the payment jumps are known ahead of time and there are hard caps. There’s no risk of your payment randomly jumping by 6% overnight. But if some economic wrench—say, a new tariff that drives inflation—keeps rates stubbornly high? The refinance window could close, and then, yeah, that full payment sticks around for a while.
The key: think ahead and don’t just plan for year one.
Let’s talk defense. How do you keep this smart and safe?
Eyes open, numbers sharp.
Here’s the truth: most docs can’t throw everything at a mortgage, student loans, and investments at the same time. Life just doesn’t work that way.
But guess what? A temporary mortgage subsidy carves out space in your budget. You can set up a smart system:
This isn’t about ignoring the mortgage—it’s using every tool so you don’t have to pick only “Team Buy a House” or “Team Pay Loans Down” or “Team Start Investing.” As a physician, you need all three.
Now, if you think regular doctor mortgages are tricky, welcome to the wild world of self-employed and 1099 gig. The trouble? The Dodd-Frank Act (thanks, 2010) makes lenders prove—like, actually prove—your ability to repay. Simple for W2 folks, not so much for everyone else.
If you’re a business owner, practice partner, or earning through multiple 1099s, conventional banks look at you like a math puzzle with missing pieces. Lenders who “get it” have options, like:
Here’s the playbook:
It’s not always easy, but it’s doable—if your lender actually knows what they’re doing.
Drop the idea that “one size fits all” when it comes to mortgages. For docs who’ve just gone self-employed or bought into a partnership, conventional and jumbo loans can slam the door right in your face—especially if you haven’t been at it two years.
Physician-specific loans exist to serve this weird in-between: you’re clearly a solid bet, but you don’t neatly fit the checkboxes. The right lender knows the difference and has programs that don’t force you to wait years just to qualify.
Let’s get practical. At Neo Home Loans, here’s the deal:
Especially in places where even a “fixer upper” costs like a small jet—hello, Southern California or the Northeast—this is game-changing. But even if you could go zero down, don’t empty your savings just for the keys. Life happens. Roofs leak. Water heaters die.
If you have even a little to put down, you may see a better interest rate and more breathing room—use it if you’ve got it.
Ready for some hard truth? Not every loan with the word “physician” stamped on it is the real deal.
Some “fake” doctor mortgages look clever: two separate loans (think: 80/20 split) to dodge private mortgage insurance (PMI)—you heard me correct, two full loans to get what could be done with one real physician mortgage. Nonsense.
The shady stuff:
Always check if the lender really understands the doctor niche. It’s not just about slapping a label on a standard loan.
Here’s how to dodge loan nightmares and spot the real pros:
Checklist for Vetting Lenders:
Look for transparency, experience, and a track record with physicians.
Think you only need a lender? Think again. A good realtor acts like your guide and your guardrail.
This tag-team can save you weeks (and keep your hair firmly attached to your head).
Here’s where most folks mess up—comparing loans just by staring at monthly payment numbers and rates. You need the full picture.
What’s a Total Cost Analysis? It’s a customized breakdown of:
Say you score a lower rate with PMI on a conventional loan, and a doc loan comes with a slightly higher rate but no PMI. Sometimes, even after factoring in PMI, the math favors the conventional route, especially short-term.
Neo Home Loans whips up a personal financial dashboard for you to weigh every option—side-by-side. Want to see the difference over five years? You’ll see what builds wealth faster, not just whatever’s trending on Reddit.
Key Comparison Points:
Knowledge is power—now you’ve got the right measuring stick.
Think finding a house is stressful? Try scrambling for loan approval when you’re already emotionally invested and the clock’s ticking.
Get pre-underwritten before you start looking. This means a lender has combed your docs, checked your credit, and given you a green light to move. When you find the right house, you can close in as little as two weeks (instead of the typical 30-45 days). Huge edge in a competitive market, and you lower the odds of losing your dream place to someone who’s “more ready.”
Do your homework—get approved, get serious, then start the hunt.
You’ve heard “real estate is local”—it’s true. Forget what the Wall Street Journal says about “the U.S. market.” Santa Barbara and Tampa don’t play by the same rules.
Example: Santa Barbara (good luck, by the way), maybe only three houses fit your criteria and they’re gone as soon as they hit the market. The plan in these markets: be lightning-fast, fully approved, and ready to close as quickly as a cash buyer.
Other places, like parts of Florida, are seeing inventory pile up, which means you have negotiation power for concessions and buy-downs.
Know the lay of the land—micro trends matter more than national headlines.
Here’s a trick that works: when competition is tight, send the seller a personal letter and a family photo. Sellers are human, too—they might have raised kids in that house, and they want another family to build memories there.
A heartfelt note can help tip things in your favor (especially if you’re up against investors). People want to feel good about who’s moving in, not just about the money.
The mortgage dance doesn’t stop at closing. Markets change. Neo Home Loans tracks your rate with their “strike rate tracker,” so when mortgage rates dip enough to make refinancing worthwhile, they’ll grab you by the sleeve.
Bought in the last few years at a high rate? Neo will proactively reach out if it’s time to refi—often at no cost within your first three years. Why pay more than you need to? Let the experts watch the markets so you don’t have to. That’s service most banks won’t bother to provide.
If you’re anywhere in the U.S. except New York (sorry, sleepless city), Neo Home Loans has you covered. Their physician-focused crew sits in Salt Lake City, but serves doctors in 49 states. All the resources, no matter where you’re planting your # Physician Mortgage Secrets: The Doctor’s Guide to Buying a Home (Without Losing Your Mind or Your Shirt!)
Buying a home as a doctor sounds simple. Great income, good credit, you’re a safe bet—right? Not so fast. Physician mortgages have quirks most people don’t see coming. If you’re wondering why your colleagues are sweating over loan approvals, or if you’re just worried about making a big cash mistake, welcome. Pour yourself a coffee, set down the white coat, and let’s break down all the homebuying stuff nobody really teaches in med school.
From temporary interest-rate tricks to the wild world of “fake” doctor loans to taking out a home loan with 1099 income, we’ll get you fluent in homebuying—without putting you to sleep.
Think of a physician mortgage as a “special edition” home loan, built for the weird, debt-heavy, late-bloomer path of a medical career. It’s not your neighbor’s 30-year fixed ride.
Here’s what makes a physician mortgage unique:
Example: An internal medicine resident in Ohio wants to buy a $190,000 home before graduation. They have a stack of loans but an offer letter in hand. With a physician mortgage, they can buy sooner, skip the 20% down, and avoid PMI (private mortgage insurance).
New residents ready to settle, attendings making cross-country moves, or established MDs tired of renting—physician mortgages are built for you.
We need to clear something up: coming out on top in the “income” and “credit score” department doesn’t mean banks will love your paperwork.
Doctors often get dinged for these reasons:
Here’s the kicker—mortgage rules aren’t made for your reality. They’re made for nine-to-fivers with a boring, steady paper trail.
Rates look ugly right now—7% is no joke. But don’t freak out and run for the hills. Mortgage rates follow inflation. As inflation calms down, rates usually do, too.
That 7% is not a 30-year problem. It’s a pain point for the next year or few, and historically, these spikes never last as long as your home loan. It’s a temporary rough patch, not the new normal.
Let’s talk power moves. Everybody wants a lower home price, but here’s the little secret: seller concessions are where the real magic happens.
A seller concession is basically the seller giving you money at the closing table (maybe to cover closing costs, maybe to help with your rate). Here’s the wild part—a concession used to buy down your mortgage rate can often slash your monthly payment way more than a straight price cut.
Let’s see the showdown:
Quick Comparison:
In hot markets, where sellers are hungry, this strategy can put you way ahead. You just need a mortgage pro who actually knows how to play these angles.
Alright, let’s get nerdy (but keep it simple). A buy down is a way to use someone else’s money (thanks, seller!) to reduce your monthly mortgage payment for 1-3 years.
Here’s how it works:
Imagine the starter doc who uses a buy down to go from $5,000 to $3,900/month in the first year. That’s real cash in your pocket during your tightest, most stressful time.
Let’s say you’re a new attending. You’re used to ramen. You want to buy, but you don’t want to go broke your first year. You win a $20,000 seller concession. Now, instead of being chained to a $5,000 payment, you’re only paying $3,900 in year one, then gradual step-ups as your salary grows.
Here’s a quick payment timeline:
Use those early-year savings for investing, paying student loans, or just breathing easier.
This program isn’t magic. Lenders still qualify you for the top (“note”) rate—the $5,000 figure. You have to be prepared for your payments to climb. The only real downside? Forgetting that the payment will rise, and then feeling the financial sting down the road.
This isn’t a sketchy adjustable-rate loan from the 2008 housing crisis. The payment jumps are capped, predictable, and set out years in advance. Still, if inflation or other factors keep rates high, and you can’t refinance, you’re stuck with the bigger payment. That’s why budgeting now, before you get distracted by your new white kitchen, matters.
Here’s your safety checklist:
Many doctors try to solve their finances with tunnel vision: “all in” on loans, “all in” on retirement, or “all in” on the house. But you can’t neglect two buckets because you’re obsessed with filling one.
Mortgage subsidy programs let you spread your cash around. Skip the eat-ramen-forever plan. Chip away at your loans, start investing early (hello, compound interest), and buy your new home—all with less stress.
This balanced approach pays off, big time, by your third or fifth year out of training.
Dodd-Frank changed everything for anyone not on a W-2. Lenders need to “document your ability to repay”—and if you just went 1099 or joined a partnership, your tax returns aren’t robust yet.
But there are workarounds, such as:
Types of income documentation that can work:
If you’re new to self-employment or just bought into a practice, don’t expect a conventional or jumbo loan to help. There’s usually a two-year waiting period. Physician-targeted loans, however, can get you around those requirements—if you find a lender who “gets” your unique numbers.
Don’t let an uninformed loan officer tank your deal because the paperwork looks non-traditional.
Here’s the cheat sheet for Neo Home Loans’ physician mortgage program:
This is especially helpful in pricey zip codes like LA, NYC, or parts of Florida where “starter home” means “seven digits.” Even so, you don’t want to empty every account just to avoid PMI. Keep a reserve for those “oh-no” home repairs; it’ll save your sanity.
Remember: a little down up front can get you better rates or lower overall costs. Don’t spend every penny you have on day one just because you can.
Not every “doctor loan” is built for docs. Some are:
The only way to dodge the fakes? Vet your lender. Check referrals, online reviews, and make sure they have skin in the game.
Ready to avoid the heartbreak? Use this vetting cheat sheet:
Pick a lender who “gets” doctors and your market. It can make the process smooth—or a four-alarm mess.
Yes, you need a mortgage guy. But a savvy real estate agent makes all the difference.
Your realtor is your partner. Don’t treat finding one like picking a fast-food spot!
You’re ready to buy, but which loan is actually best? Enter the Total Cost Analysis.
What’s involved?
Neo Home Loans gives clients a side-by-side personal dashboard to compare all the options, apples-to-apples. Sometimes a conventional loan with cheap PMI actually gets you ahead; sometimes the doc loan’s pure flexibility wins.
This is not a decision to rush. Use the side-by-side analysis to make the smart move, not just the easy one.
Get pre-underwritten before you even start house hunting. This means your loan is as close to “done” as possible—so if you find your dream home, you can close in two weeks.
In competitive markets, speed is everything. If you’re only half-approved, that dream home could vanish while you’re playing paperwork catch-up.
Some markets have houses flying off the shelves; others are dead quiet. Your negotiation power, competition, and timeline—all local.
Example: Santa Barbara—maybe three homes fit your needs. Good luck. In Tampa? Inventory is rising, and sellers are flexible. National averages mean nothing to you when you’re making the biggest purchase of your life.
Got competition? Write a personal letter to the seller—and include a photo of you (maybe the dog and kids too). Sellers often want to know their house will be loved, not flipped by an investor.
That extra touch can push your offer to the top of the pile, even if your price isn’t the highest.
Closing isn’t the finish line. Neo Home Loans uses a strike-rate tracker to flag when you can refinance and save. If you closed at a high rate and rates drop later, they’ll reach out and show you how to refi (often for free, if it’s within a few years).
It’s proactive, and it means you don’t leave big dollars on the table just because you weren’t watching the news every night.
Live anywhere but the Empire State? Neo Home Loans has you covered—49 states, with a Salt Lake City-based physician lending team and decades of experience guiding doctors to the finish line.
Moving across the country? Not sure if you’re about to drop $900,000 on a house next to a tire fire? Neo Home Loans offers a free neighborhood report card:
Just email Josh Mettle with the subject “neighborhood report” and your new city or zip code. They’ll send you a customized market breakdown (no charge).
Buying a home as a doctor can be confusing—a mesh of financial acronyms, custom programs, and mistakes that cost thousands. But the right physician mortgage makes all the difference, and with the right team of advisors, you’ll save money, avoid stress, and maybe even get that coveted “physician friendly” home before your next shift.
If you’re an MD (or soon to be) and prepping to buy, don’t let the myths, “fake” loans, or 1099 headaches slow you down. Get the inside info, pick a real pro, and buy smart. That dream home (with or without the gourmet kitchen) is closer than you think.
The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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Conversations helping graduating medical students to attending physicians build a strong financial foundation
