Physician loan or conventional, in a state where price is not the problem
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Texas is the state where a physician is most likely to be told, honestly, that they do not need the specialised product.
The comparison
| Physician programme | Conventional | |
|---|---|---|
| Rules set by | Lender portfolio guide | Fannie Mae / Freddie Mac |
| Down payment | Up to 100%; 5%-down options | Typically 3–20%+ |
| Monthly PMI | None | Generally required above 80% LTV |
| Ceiling | $2M | $832,750 conforming in Texas |
| Student debt | Documented IDR payment | 1% of balance — B3-6-05 |
| Future income | 150 days pre-start | 90 days — B3-3.3-03 |
★ Strike one row out before you start
The ceiling row. In Texas it almost never matters: a typical Austin home is $417,977, Dallas $360,437, Houston $305,001, San Antonio $276,747 — all far inside $832,750.
That is worth saying plainly because a great deal of physician-loan writing leans on loan size, and in this state that argument is empty. The numbers.
So where does the physician route win in Texas?
- Heavy training debt — the big one. $300,000 counts as $3,000 a month on conventional whatever you actually pay. In Houston that is about the price of the house.
- No deposit saved. Up to 100% financing, no monthly PMI.
- Not yet earning. 150 days against 90, useful here for sequencing a relocation.
And where conventional wins
More often in Texas than in California, and we would rather say so.
- You have a deposit and manageable debt. At 20% down on a $360,437 Dallas home there is no PMI to avoid and no reach problem to solve.
- Your student loans are modest or already in repayment at a documented level that conventional can live with.
- You want standard agency terms rather than a lender's own portfolio product.
Mike's read: the physician programme solves specific problems — debt, deposit, timing. Texas prices mean the fourth problem, reach, simply is not on the table. If you do not have one of the first three, take the conventional loan.
The honest version of 100% financing
It means starting with no equity. Texas markets run slower than the national benchmark — 61 to 82 days against 53 — which tells you about demand but guarantees nothing about appreciation.
If you may move within a few years, that matters more than the monthly difference. We cannot tell you which way prices will go; we can tell you to decide with the equity position in view rather than discover it at sale.
And FHA?
Seldom the right answer for a physician with strong income. It counts 0.5% of a zero-payment student loan balance under HUD 4000.1 and carries its own mortgage insurance structure. It exists; it is rarely the best of the three. The three rulebooks.
Frequently asked questions
Is a physician loan better than conventional in Texas?
Only if you have one of the problems it solves. Texas prices sit far below the conforming limit, so loan size is not a differentiator. The physician route wins on heavy student debt, on a small deposit, or on buying before income starts; conventional wins when the file clears on its own terms.Does loan size matter for Texas physicians?
Rarely. The 2026 conforming limit is $832,750 and the most expensive major Texas metro, Austin, has a typical value of $417,977. Conventional financing reaches comfortably at typical prices across the state.What is the downside of 100% physician financing in Texas?
Starting with no equity. Texas markets run slower than the national benchmark at 61 to 82 mean days to pending, and nothing guarantees appreciation, so the decision should account for how long you expect to stay.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, or licensure advice. Physician-loan program terms, eligible degrees, and overlays are set by the lender and change; Texas loan-repayment program terms and award cycles change too. Confirm your scenario with us and your program administrator. All loans are subject to borrower and property qualification, including credit and income review.