For physicians looking to buy a home in Texas, the process can present unique financial challenges. With extensive education and student loan debt, many doctors face obstacles that can make it difficult to secure a traditional mortgage. This is where physician mortgage loans can be especially helpful. These loans offer favorable terms, such as little to no money down and flexible debt-to-income ratios, making homeownership more accessible to physicians.

According to the Texas Medical Association, there are over 54,000 licensed physicians practicing in Texas. According to Zillow, the median home value in Texas is approximately $273,000 as of April 2023, but this can vary widely depending on the specific city or region within the state. For example, the median home value in Houston is approximately $199,000, while the median home value in Austin is approximately $517,000.

If you're a physician in Texas who is looking to purchase a home, it's important to explore all of your options and find the lender that is right for you.

We've rounded up the best physician home lenders for doctors in Texas.

 

Best Doctor Mortgage Loan Lenders in Texas

Buying a home in Texas can be a daunting task for physicians who have recently completed their residency and are struggling with significant student loan debt. Physician mortgage loans have become a popular option for medical professionals who are looking to purchase a home in Texas.

 

How Do Physician Mortgages Work in Texas?

Physician mortgages, also known as doctor loans, are a type of mortgage specifically designed for medical professionals who may have unique financial situations. These loans offer favorable terms, such as low or no down payments, no private mortgage insurance, and flexible debt-to-income ratios. Lenders who offer physician mortgages in Texas typically take into account a doctor's potential future income when considering their eligibility, rather than just their current income and debt. This is because medical professionals often have high earning potential but may also have significant student loan debt that can impact their current financial standing. By taking this into account, physician loans can help make homeownership more accessible for doctors who may not be able to qualify for traditional mortgages.

 

Choosing Between a Conventional Mortgage and Physician Mortgage in Texas

If you are committed to living in Texas for more than five years and have the financial means to do so, it is usually best to put 20% down and get a conventional mortgage. This will improve your monthly cash flow and allow you the financial freedom to invest or spend. By putting down a sufficient down payment, you will also save hundreds of thousands of dollars in interest over the life of the loan, all guaranteed, unlike investing a potential down payment elsewhere.

However, if you are looking to purchase a home in Texas and cannot or do not want to put down 20%, a physician mortgage loan is a reasonable option and is at least as good as other non-20%-down options.

When comparing conventional vs. physician mortgages, physician loans do have advantages, primarily revolving around easier underwriting requirements. A physician mortgage can help you qualify for a loan you otherwise could not get.

Conventional mortgages are generally more difficult to qualify for, but there is a reason for that. If you can qualify for a conventional mortgage, especially if you can make a sufficient down payment to avoid paying PMI, you will usually get a lower interest rate and fees. That means a lower monthly payment and a lower overall cost for your loan.

 

Moving from Texas and Need a Doctor Mortgage in a Different State?

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