Best Loans for Physicians of 2025

Between your profession and your personal life, you might not have time to evaluate financial products that can help you accomplish your goals. 

Fortunately, lenders simplify your search by tailoring loan options for physicians based on common financial needs. For instance, they offer mortgages designed without a 20% down payment. They also provide financing solutions to help acquire essential medical equipment quickly. Additionally, lenders advertise personal loans for physicians aimed at delivering the best deals.

Whatever your borrowing purposes, learn about unique loans for doctors.  

Home Loans for Physicians 

A physician loan is a mortgage for medical professionals that may feature fewer eligibility restrictions. If you’re an experienced professional, these loans could offer attractive interest rates and terms. They are especially useful for medical professionals who: 

1. Don’t have a sizable down payment 
2. Are in residency or haven’t found your next job 
3. Have a thin credit history 
4. Owe significant student loan debt 

Also known casually as doctor mortgages, this financing is typically available to medical doctors with M.D. or D.O. degrees. They’re also sometimes an option for dentists and orthodontists with D.D.S. or D.M.D. degrees, plus other medical (and licensed) professionals. You can use this product for buying or refinancing your primary residence (but not for second or vacation homes). 

Here are some examples of the flexibility of home loans for physicians: 

1. Loans might not require private mortgage insurance (PMI), even if the down payment is less than 20% of the value of the home. 
2. Lenders might qualify you with a higher debt-to-income (DTI) ratio, perhaps by accounting for your monthly student loan payment as opposed to your overall education debt amount.
3. Residency and employment contracts are accepted as verification of employment and income. Owning and operating your own practice will require more substantial proof of your earnings.

In many cases, lenders offer doctors favorable loan terms because of their high earning potential — and the high likelihood of reaching that potential. If you can make monthly loan payments in the first few years, you’re likely to be a safe long-term bet for the financial institution.

However, a physician loan isn’t necessarily your best mortgage option. Consider alternatives, including:

1. Conventional (and jumbo) loans: If you can manage a 20% down payment 
2. FHA loan: If your credit score is between 500 and 580 or higher 
3. VA loan: If you qualify for VA benefits (perhaps as a result of your service)

Tip: Leave no stone unturned in your search for the right mortgage. Mere percentage point differences in your mortgage interest rate can add up to a lot of money (spent or saved) over the course of decades-long repayment. 

Business Loans for Doctors 

If you’re seeking financing for your medical practice, consider these five types of loans for doctors: 

Small Business Administration (SBA) 7(a) Loans 

An SBA (7a) loan is a loan that’s issued by a bank or other lender but backed by the U.S. Small Business Administration. SBA loans have long repayment terms, low interest rates, and high loan limits ($5 million). You can use an SBA loan for various business needs, including short-term and long-term working capital, real estate purchases, and the purchase of machinery, to name a few examples. 

It can take a long time to get approved for an SBA loan. So, this type of loan isn’t an option if you need a fast business loan. 

Also, qualifying for an SBA loan can be difficult. Here are a few of the requirements: 

1. Exhausted your financing options 
2. Excellent credit score 
3. Considered a small business by the SBA 
4. Have equity in the business 
5. Demonstrate a need for the loan

Bottom line: An SBA 7(a) loan can be an excellent financing option for doctors who meet the above requirements and don’t mind waiting a long time for approval. 

Traditional Bank Loans 

A bank loan is likely to have stringent requirements, as large financial institutions are often more risk-averse than online lenders. But the plus side is that if you meet these requirements, you might qualify for lower interest rates than you’d find elsewhere. 

The loan process for traditional bank loans can sometimes be detailed and involve several steps, which ensures thorough evaluation and compliance. Some banks may use manual underwriting processes that add time to the application review. If you choose a traditional bank loan, it's a good idea to ask about their estimated funding timelines and confirm their ability to meet them consistently.

Tip: Some banks specifically offer medical practice loans. So, if you want to go the traditional bank loan route, look for a bank that has experience helping other medical professionals. You might consult colleagues or your professional association. 

3. Term Loans 

Though you can find term loans in multiple places, there are a few key differences between brick-and-mortar banks and online lenders offering this type of loan for physicians: 

Accessibility 

Brick-and-mortar banks typically require more documentation and a detailed credit history, making access to term loans a longer process for some borrowers. In contrast, online lenders often offer simpler applications and cater to physicians with tailored loan programs, ensuring easier accessibility. 

Time to Funding 

Banks may take weeks to process term loans due to detailed application process. However, Online lenders often have faster application process making them ideal for physicians needing quick access to capital for their practices. 

Interest Rates 

Banks usually provide lower interest rates for term loans, especially to borrowers with strong credit profiles. On the other hand, online lenders offer slightly higher rates, but they have more flexibility and tailored options making them attractive for physicians seeking convenience. 

4. Equipment Loan 

As a healthcare professional, you probably need a lot of equipment, such as computers, tables, and beds. Equipment loans are designed for this scenario. 

The qualifications for an equipment loan vary based on the lender. But as with other loans, they look at your credit score, time in business, and financial statements. 

Here’s more on how equipment loans for doctors work: 

1. You may be able to use the new equipment as collateral for the loan. 
2. You can finance up to 100% of the value of the equipment. 
3. Many lenders set the term of the loan based on the expected useful life of the equipment – for example, a computer is likely to have much shorter repayment terms than a table. 
4. Time to funding can be anywhere from a few business days to a few months, depending on whether you work with a bank or online lender. 

5. Business Line of Credit 

Like a credit card, a business line of credit allows you to borrow any amount of money up to a certain limit. Then you pay interest on the amount you borrow, when you borrow it. 

This type of financing option is flexible, as lenders typically don’t ask how you will use the funds. And you can access the credit line faster than, say, a commercial real estate loan. 

As with other loans, you must meet a few requirements to qualify for a business line of credit. In many cases, a line of credit has a variable interest rate, based on market rates. 

Personal loans for physicians 

If you need a loan and prefer a lump sum for personal or mixed use, you might consider personal loans for physicians. This product could help you consolidate debt, cover a relocation or a major purchase. 

Banks, credit unions, and online lenders advertise this form of financing. Just keep in mind that some lenders may not allow you to use a personal loan for business purposes. Other loan details include: 

1. They may be unsecure i.e. they don’t require collateral. 
2. They feature fixed interest rates (but be wary of origination fees). 
3. You may select a repayment term of one to seven years (varying by lender). 
4. You could apply with a cosigner or co-borrower. 

Good to know: Personal loans for doctors may carry advantages that typical consumer loans don’t, even from the same lender.  

FAQs on Loans for Doctors 

What credit score do you need to get loans? 

The minimum credit score required depends on the loan type, lender and other characteristics of your application. Expect minimum requirements to be in the range of good credit, defined by FICO as scores between 670 to 739. Generally, the higher your credit score, the more likely you are to qualify. 

Are there student loan refinancing options for doctors? 

Yes, loans for physicians extend to student loan consolidation and refinancing. Some lenders offer unique perks to medical professionals, such as temporarily low, fixed monthly dues while you’re in training or residency. 

What if you need a loan refinance for doctors? 

For home loans, you might refinance to a lower interest rate once you increase your income or improve your credit or DTI. Just be mindful of your physician loan’s prepayment penalty (if it has one). Similarly, you could benefit from refinancing business or personal loans for physicians once your finances are in better shape. 

Can you get loans from banks or online lenders? 

Each type of financial institution has its own benefits. If you have strong credit and an existing relationship with a bank, you might qualify for a lower interest rate there. However, an online lender might be the way to go if you’re newer to financing or need funds quickly. 

Are interest rates lower if you need a loan as a doctor? 

Interest rates and annual percentage rates depend most heavily on factors like your credit history, DTI, and income. If you have a strong application, it could be possible to get a lower rate on a typical loan. However, you might miss out on a physician loan-specific benefit offered by a given lender. 

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