Buying a Home With Student Loans Idaho: The Physician Loan (2026) Home > Blog > Buying with Medical Debt You just matched to a Residency program in Boise. Or maybe you finally finished your Fellowship and are moving to Meridian for your first attending role. You have a great salary on paper, but you also have $250,000 in student loans. When you walk into a big bank, they look at that debt and panic. They tell you to come back in 5 years when it's paid off. At 1st Choice Mortgage, we know that medical debt is different. Here is how our Idaho Physician Loan helps you buy a home in 2026, even with massive student loans. 1. The “1% Rule” vs. Reality The biggest hurdle for doctors is the Debt-to-Income (DTI) ratio. Standard loans (FHA/Conventional) often require lenders to calculate your monthly student loan payment as 1% of the total balance, even if your loans are deferred! The “Big Bank” Calculation: Loan Balance: $300,000 1% Rule Payment: $3,000 / month (Ouch!) Result: Loan Denied. Our Physician Loan Calculation: Loan Balance: $300,000 IBR Payment (Residency): $0 – $300 / month Result: Loan Approved. ✅ We have the ability to use your Income-Based Repayment (IBR) amount. If you are a Resident and your payment is technically $0, we can often use $0. 2. No PMI (Save $400/Month) Usually, if you put less than 20% down, you have to pay Private Mortgage Insurance (PMI). This is money thrown away every month. Our Physician Loan allows you to put down as little as 0% to 5% with NO PMI. This saves you hundreds of dollars every single month compared to a standard loan. 💡 Jerry’s Insider Tip: “Wait, I haven’t started my job yet!” That’s okay. We can close on your new home up to 90 days before your start date using just your signed employment contract. You can move in, unpack, and get settled before your first shift. 3. Who Qualifies? (It’s Not Just MDs) We can lend to a wide variety of medical professionals under this program, including: Medical Residents & Fellows Medical Doctors (MD & DO) Dentists (DDS & DMD) Veterinarians (DVM) 🐶 *(Yes, we love our Vets!)* Podiatrists & Optometrists Comparison: Standard vs. Physician Loan Feature Standard Loan Physician Loan Down Payment 3% – 20% 0% – 5% PMI Cost $200 – $500/mo $0 / mo Student Debt Counted against you Excluded / IBR Used Frequently Asked Questions Can I buy a home with $200k in student loans? Yes. While standard loans penalize you for high balances, our Physician Loan program looks at your monthly payment (IBR), not your total balance. This allows most doctors to qualify easily. Do I need to be working to qualify? No. We can close your loan up to 90 days before you start your new job using your signed employment contract. You do not need 30 days of paystubs. What if I am only a Resident? Residents are our most common clients! We understand your income will grow, so we offer flexible terms specifically for those in Residency or Fellowship programs. Moving to Idaho for work? Let’s run the numbers using your IBR payment. Get a Physician Quote About the Author: Jerry Robinson Broker/CEO, NMLS #4475 Jerry has over 30 years of experience and specializes in the “Doctor Loan” niche. He helps Medical Residents and Physicians navigate the transition to homeownership in the Treasure Valley without the stress of big bank rejections. 1st Choice Mortgage best mortgage lender Boise Housing Market 2026 buying a home with student debt Doctor Loan Program Idaho idaho mortgage lenders Idaho Physician Loan Medical Resident Home Loans Meridian real estate No PMI mortgage Veterinarian home loans 1st Choice Mortgage Company, LLC Click to Call or Text: (208) 375-5626 This entry has 0 replies Comments are closed.
