A physician loan or “doctor loan” is a mortgage specifically for medical professionals that usually doesn’t require a down payment. With other loan types, lenders often want borrowers to pay private mortgage insurance (PMI) if they’re making a down payment of less than 20%. Physician loans make it possible to skip paying for both a down payment and PMI if you happen to be a doctor.

Physician loans are meant for new medical professionals just entering the field. Doctors are often at a disadvantage when applying for a regular mortgage early in their career because they usually have a large debt-to-income ratio (DTI) after medical school, and may not be able to provide proof of employment and income if they’ve just graduated or started their residency.

Physician home loans take all of this into account and make some special allowances for the unique circumstances of a medical career. It may seem unusual for a lender to allow borrowers to take on a mortgage when they have a large amount of student loan debt and are just starting out in their careers, but they have doctors’ career trajectories in mind.