Physician Home Loans in Austin, Texas
Austin built a medical school in the last decade and priced its housing like a coastal city in the same period.
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Dell Medical School is new enough that Austin's physician population is still forming, and it skews young — early-career attendings and trainees who arrived after the school opened. That is the classic profile for this program: strong future income, heavy education debt, and a down payment that has not had time to exist.
Austin's difficulty is that housing costs moved like a tech market while medical salaries moved like medical salaries. The low down payment matters here more than in most Texas markets, and so does an honest conversation about how much house is prudent versus how much you can technically be approved for. Those are two different numbers and I will show you both rather than only the larger one.
- Dell Seton Medical Center at The University of Texas
- Dell Medical School at UT Austin
- Ascension Seton and St. David’s HealthCare
What the program reaches in Austin
Run a Austin payment — it checks your price against the program tiers and shows the mortgage insurance you avoid.
| Credit score | Loan up to | Mortgage insurance | |
|---|---|---|---|
| 720+ | $2,000,000 | None | Smallest down payment available at every loan size |
| 680+ | $2,000,000 | None | Smallest down payment available up to a lower loan size |
There is a floor as well as a ceiling. This program is only for buyers putting a small amount down — so if you have a large down payment saved, this is not your program and a conventional loan is probably cheaper. Loan amounts run $100,000 to $2,000,000. Terms change without notice; ask me for today's matrix before you plan around a number.
Asked here more than anywhere else
What is the difference between what I can be approved for and what I should borrow?
Often a great deal, and in Austin it matters more than most places. Approval is a ratio test against documented income. Prudence accounts for the student loan payments that resume in full later, the specialty you are heading into, and whether one income is carrying the house. I will give you both numbers and let you choose — most lenders only show you the ceiling.
What exactly is a physician loan?
A mortgage program written around the fact that a doctor’s early-career finances look bad on paper and are not. It allows a small down payment on loans up to $2M, charges no mortgage insurance, excludes student loans from your debt ratio while you are in residency or fellowship, and lets a signed employment contract stand in for pay stubs with a start date up to 150 days after closing.
Do I need to have started working?
No. A fully executed contract or offer letter works with a start date up to 150 days after closing — close to five months. It has to state your title, start date and compensation, and the only contingencies allowed are your medical license coming through or routine items like a background check. If you are contracted as a 1099 physician the window is tighter, at 60 days.
Is the rate higher than a conventional loan?
Often slightly, and that is the honest trade for a low down payment and no mortgage insurance. Whether it is the better deal depends on how much you would otherwise put down. With a large down payment saved, a conventional loan sometimes wins outright. I will quote both and show you the comparison rather than steering you to the one that is easier for me.
How much student loan debt is too much?
There is rarely a hard cutoff, because what matters is how the payment is counted rather than the size of the balance. In residency or fellowship, loans in deferment, forbearance or reporting $0 on an income-driven plan can be excluded from the ratio altogether — a $400,000 balance and a $150,000 balance look the same at that point. After training the documented income-driven payment is used, which still beats the 1%-of-balance math that sinks conventional files.
Buying in Austin?
Tell me your timeline and your training stage and I will tell you what is realistic in Austin — before you start looking at houses.
Also serving Texas
Physician loans in Austin, TX.
One call, no credit pull. I will tell you what you qualify for and whether this is actually your best option.