The average medical school graduate leaves training with well over $200,000 in student debt. Run that through a normal mortgage calculator and the answer comes back the same way every time: denied. A Michigan physician loan flips that math. It lets doctors, residents, fellows, and dentists buy a home with zero down, no monthly PMI, and student loan rules that actually make sense for a medical career.<\/p>\n\n
Here’s what the program looks like right now, who qualifies, and how to get started.<\/p>\n\n
A Michigan physician loan is a specialty mortgage built for medical professionals. It isn’t backed by Fannie Mae, Freddie Mac, or the FHA \u2014 which is exactly why it works. Lenders that offer these programs keep the loans in-house and write their own guidelines.<\/p>\n\n
Translation: they can look at your signed employment contract instead of two years of tax returns. They can count your income-based student loan payment instead of your full balance. And they can skip the mortgage insurance a conventional lender would require on anything under 20% down.<\/p>\n\n
Think of it like this. A conventional mortgage judges you on where you’ve been. A physician loan judges you on where you’re going.<\/p>\n\n
We worked with a first-year internal medicine resident relocating to Grand Rapids who assumed she’d be renting for at least five years. Her student loan balance was north of $280,000. Once we ran her file using her IDR payment instead of the balance, her debt-to-income ratio dropped into qualifying range. She closed on a home two weeks before orientation started.<\/p>\n\n
Guidelines vary between lenders, but most Michigan doctor loan programs look for the following:<\/p>\n\n
Honestly, the credit score is where most people trip up \u2014 not the debt. A resident with $300,000 in loans and a 720 score is usually an easier approval than one with $80,000 in loans and a 660.<\/p>\n\n
Not always the physician loan. That’s the honest answer.<\/p>\n\n
If you can put 20% down, a conventional mortgage will often carry a slightly lower rate and lower fees. Physician loans price in a little extra for the flexibility they offer. So if you’ve got the cash and your student loans are modest, run both.<\/p>\n\n
But if you’re putting down less than 20% \u2014 which describes almost every resident and new attending we talk to \u2014 the physician loan usually wins outright. No PMI on a low-down-payment loan is a meaningful monthly difference, and it doesn’t go away on its own the way conventional PMI eventually does.<\/p>\n\n
One dentist we financed in Ann Arbor had 10% saved. He compared a conventional loan with PMI against our doctor program. The physician loan’s rate was marginally higher. His total monthly payment was still lower, because the PMI line vanished. He kept the down payment cash and used it to outfit his new practice instead.<\/p>\n\n
Can I qualify with a lot of student debt?<\/strong> Yes \u2014 that’s the entire point of the program. Lenders generally use your income-driven repayment amount rather than the full balance. Deferred loans are often excluded from the calculation altogether.<\/p>\n\n Can residents and fellows qualify?<\/strong> Yes. A signed employment contract is usually enough, even if you haven’t started the job.<\/p>\n\n Do I need a down payment?<\/strong> Many Michigan physician loan programs offer 100% financing. On higher loan amounts, some lenders ask for a small down payment, so confirm your exact terms with a loan officer.<\/p>\n\n Can I refinance with a doctor loan?<\/strong> These programs are built primarily for purchases, but some lenders offer refinance options for medical professionals. Worth a conversation.<\/p>\n\n What properties are eligible?<\/strong> Single-family homes, condominiums, and homes in planned unit developments. Primary residences only.<\/p>\n\n You spent a decade earning the income. You shouldn’t have to spend another decade renting because of the debt it took to get there.<\/p>\n\n If you’re a physician, resident, fellow, or dentist buying in Michigan \u2014 Grand Rapids, Ann Arbor, Detroit, Traverse City, anywhere in the state \u2014 we’ll walk you through exactly which requirements apply to your specialty and timeline. No pressure, just straight answers.<\/p>\n\n Call 800-555-2098<\/strong> or request information below to get started on your Michigan doctor loan<\/a> today.<\/p>\n\n\n\n\n\n\n\n <\/p> Ready to Buy? Let’s Talk.<\/h2>\n\n
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