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For many early-career doctors, buying a home is both a milestone and a strategic financial decision. One increasingly popular approach is purchasing a multi-family property, like a duplex or triplex, where you live in one unit and rent out the others. But can you use a physician mortgage to make that happen?
The short answer: Yes, but with some limitations.
Why Multi-Family Homes Appeal to Doctors
Physicians often navigate unique financial hurdles: high student loan debt, delayed income growth, and the pressure to establish stability early in their careers. Multi-family homes present a smart solution by offering:
- Rental income to offset mortgage costs
- Build equity while maintaining flexibility
- Live affordably in high-cost urban areas
Properties like duplexes, triplexes, and fourplexes are especially attractive because they allow doctors to live in one unit while generating income for others, combining practicality with long-term financial growth.
What Is a Physician Mortgage Loan?
Physician mortgage loans are designed specifically for medical professionals, including MDs, DOs, DDSs, and DMDs. These loans offer:
- Up to 97% Financing
- Options for no private mortgage insurance (PMI)
- Flexible debt-to-income (DTI) ratios
- Leniency towards student debt
These features make it easier for doctors to qualify for a home loan early in their careers.
Can Doctors Buy a Multi-unit Property with a Physician Loan?
Yes, if the property has 1 to 4 units and the doctor lives in one of them.
Most Physician mortgage programs typically allow for multi-family purchases of up to four units, but the property should be owner-occupied. That means you need to live in one of the units as your primary residence.
What’s not allowed:
- Properties with 5 or more units (These could be classified as commercial)
- Non-owner-occupied investment properties
This distinction is critical. Even if the property is residential, it won’t qualify for this physician loan unless you plan to live there.
Physician Loan for Duplex: What You Need to Know
Duplexes are often the most accessible entry point into multi-family ownership. Here’s why they work well with physician loans:
- Two units: One for you, one to rent
- Lower purchase price than larger multi-family homes
- Easier to manage as a first-time landlord
Doctor Mortgage for Multi-Family Homes: Eligibility & Limits
When applying for a physician mortgage on a multi-family property, keep these factors in mind:
- Occupancy: You must live in one of the units full-time
- Property condition: The home must meet livability standards
- Zoning: The property must be zoned residential (not commercial)
Working with our team, who are experienced in physician loans, can help you navigate these nuances.
Final Thoughts: Is a Multi-Family Home Right for You?
If you’re a doctor looking to maximize your housing investment, a 2–4 unit property financed with a physician mortgage could be a smart and strategic move.
By understanding the eligibility requirements and partnering with our experienced and knowledgeable team, you can take advantage of the benefits of a physician loan while building long-term financial stability.
Ready to explore your options?
Connect with a physician mortgage specialist to see what’s possible for your unique situation.
Julie Velline
With over two decades of experience in the mortgage industry, Julie Velline has built a career as a loan officer. Julie managed her own brokerage offices for many years before joining Heritage Bank NA in 2017. Her passion for helping first-time homebuyers was sparked after purchasing her first home in 1996. Since then, she has dedicated her career to assisting clients in making their dreams of homeownership a reality.
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