Doctor loans typically have the following characteristics:
- Low to no down payment. One of the most well known characteristics of doctor loans is they require little to no down payment on the loan. No down payment loans are typically capped by most lenders between $500,000 and $750,000 and will require a down payment if the loan amount is higher.
- Relaxed debt to income ratios. For doctors with student loans, meeting normal debt to income restrictions can be a hurdle to getting a mortgage loan. Doctor loans have more relaxed guidelines and some lenders won't include student loans in their underwriting calculations.
- No income history needed. Doctor loan lenders will allow borrowers to close on a home before they start working as long as they have a signed employment offer. Many lenders will allow closing up to 90 days prior to starting a job. Self employed doctors are sometimes able to qualify with as little as 6 months of income history.
- No PMI. Almost all lenders require private mortgage insurance if the borrower puts less than 20 percent down on a home loan. However, doctor loans rarely require PMI on the loan despite a low down payment.