Thinking about buying a home in Colleyville while starting a new role at a DFW hospital? Physician mortgages can help you move fast, even if your start date is weeks away and student loans loom large. You want a clear, time-saving path that works with your schedule and your contract. In this quick guide, you’ll learn how physician loans work, how they compare to other options, what to watch in Tarrant County, and the simple steps to close on time. Let’s dive in.
Physician loans explained
Physician mortgages are specialty home loans created for medical professionals. They are offered by select banks and lenders, and terms vary by program. The goal is to make buying easier for doctors whose earning power is rising but whose finances may not fit a standard box.
Common features many programs offer:
- Low or no down payment options, sometimes between 0% and 10% down.
- Reduced or waived PMI even with a low down payment.
- Flexible treatment of student loans and future income.
- Higher allowable debt-to-income ratios.
- Access to jumbo loan amounts common in Colleyville.
- Faster underwriting when you provide a signed employment contract.
These loans are not a government program, and they do not always have the lowest interest rate. Always compare the full cost across lenders.
Who qualifies and how underwriting works
Eligibility varies by lender. Many programs include MD, DO, DDS/DMD, and DVM, and some include other licensed professionals. Residents, fellows, and recent grads may qualify depending on the program.
Employment and start dates
- Many lenders accept a signed offer letter or employment contract with a start date as proof of income.
- Residents and fellows may use training contracts. Some lenders consider future attending income for qualification.
- Coordinate your closing date with your start date so underwriting timelines line up.
Student loan treatment
- Lenders handle student loans differently. Some use the documented payment amount or your income-driven repayment. Others may use a calculated payment if documentation is missing.
- Ask each lender to share their policy in writing so you can compare.
Credit, DTI, and reserves
- Strong credit is preferred, often in the mid-700s or higher for the best terms, though programs differ.
- Physician loans may allow a higher DTI than conventional loans.
- Some lenders want 2 to 6 months of cash reserves, especially with low down payments or jumbo sizes.
Loan size, PMI, and property types
- Programs can be conforming or jumbo. Check current conforming limits through the Federal Housing Finance Agency.
- Some physician loans waive PMI at high loan-to-value, while others replace PMI with a higher rate or a lender fee. Compare the total cost.
- Property guidelines vary. Condos with limited owner occupancy or certain manufactured homes may be restricted.
For a primer on comparing loan offers and understanding disclosures, see the CFPB’s mortgage shopping guidance.
How physician loans compare
Here is how common loan types stack up for Colleyville buyers:
- Conventional: Often best pricing with larger down payments and strong credit. PMI applies above 80% loan-to-value. Treatment of student loans can be stricter.
- FHA: Low down payment and flexible credit, but mortgage insurance is required regardless of down payment and loan limits may be too low for many Colleyville homes.
- VA: No down payment and no PMI for eligible veterans and active-duty service members.
- Jumbo: Useful for higher-priced homes. Underwriting is usually stricter unless you use a physician-focused jumbo program.
- Portfolio/Bank statement: Flexible for self-employed physicians but often with higher rates and down payments.
Takeaway: Physician loans can blend the best of jumbo and conventional features, but details are lender-specific. Compare at least two or three offers.
Colleyville and Tarrant County factors
Prices and appraisals
Colleyville has many higher-priced single-family homes. In segments with fewer comparable sales, appraisals can be challenging. Ask your agent to prepare a strong CMA and support the appraiser with relevant comps.
Property taxes and exemptions
Texas has no state income tax, so property taxes are a major part of your monthly housing cost. Review your target property’s details through the Tarrant County Appraisal District and check city information with the City of Colleyville. Look into applicable exemptions like homestead to manage long-term costs.
Schools and boundaries
Much of Colleyville is served by Grapevine-Colleyville ISD. Confirm school assignments and boundary maps directly through Grapevine-Colleyville ISD. District boundaries can affect commute preferences, schedules, and property selection.
Commute and employment hubs
Many physicians in Colleyville work across the DFW system, including Baylor Scott & White, Texas Health Resources, UT Southwestern affiliates, and private practices. Consider proximity to major routes like SH 26, SH 121, and connections to the DFW airport corridor when planning your daily drive and call schedule.
Insurance and flood checks
Review local homeowners insurance conditions, including wind and hail coverage, which can impact premiums. Check a property’s flood zone status through the FEMA Flood Map Service Center and budget for flood insurance if required.
HOAs and property rules
Some Colleyville neighborhoods have HOAs with dues and covenants. If you are considering a condo or a property with specific HOA restrictions, confirm early that the property type fits your lender’s physician loan guidelines.
Step-by-step path to closing on time
Get preapproved early. Tell your lender you plan to use a physician loan in Colleyville and share your employment contract.
Gather documents. Having your paperwork ready keeps underwriting on track.
Align your search with your start date. Schedule tours around your rotations or orientation dates and choose a closing timeline that fits.
Make a strong offer. Use recent comps and a clean contract. If you are using 0% to 5% down, consider appraisal and reserve expectations in higher-priced segments.
Keep underwriting moving. Respond quickly to lender requests. Confirm how your student loans are treated and whether PMI is waived or baked into pricing.
Prepare to close. Do your final walk-through, review closing disclosures, and confirm utility setup and insurance coverage.
Your physician-buyer document checklist
Have these ready to speed things up:
- Signed employment contract or offer letter with start date and compensation.
- Residency or fellowship contract, if applicable.
- Recent paystubs if already working, plus W-2s and tax returns if available.
- Proof of completion of training or a verification letter if recently graduated.
- Student loan statements and documentation of payment arrangements or IDR plan.
- Bank and asset statements for reserves and any down payment source, usually 2 to 3 months.
- Government ID and Social Security number.
- Documentation for any additional income like bonuses or partnership draws.
- Letters of explanation for any credit issues, if needed.
Smart tips for physician loan shopping
- Compare at least two to three offers, including a physician program and a conventional or jumbo alternative. Focus on APR, fees, PMI treatment, and reserves.
- Ask how the lender handles student loans, especially IDR payments and future attending income.
- Clarify PMI policy. If PMI is “waived,” ask whether the rate or fees are higher in exchange.
- Check loan size options against the FHFA conforming limits for Tarrant County.
- Confirm property type rules early for condos or unique homes.
- Time your closing with your start date to avoid delays.
Why work with a Colleyville-focused team
You deserve a team that understands hospital schedules, contract timelines, and higher-priced neighborhoods across north DFW. Best Life Realty Group is based nearby and serves Colleyville daily. Our physician relocation focus means you get:
- Lender introductions to programs that fit physicians.
- Tour plans and communication that align with your call and clinic schedule.
- Neighborhood and comp analysis tailored to appraisal realities in Colleyville.
- Guidance on taxes, HOA rules, school boundaries, and flood checks for each property.
- A calm, organized closing plan that fits your start date.
When you are ready, we will help you compare options, spot red flags, and make a confident offer.
Ready to buy with clarity and speed? Connect with Shannon Johnson to plan your Colleyville move and get tailored lender options.
FAQs
Can residents and fellows use physician loans in Colleyville?
- Many programs accept residents and fellows using training contracts or future attending income, but rules vary by lender. Ask whether training contracts are allowed.
Do physician loans always eliminate PMI for Colleyville homes?
- Not always. Some programs remove PMI even with a low down payment, while others trade PMI for a higher rate or fee. Compare the total cost of each offer.
Are physician mortgages cheaper than conventional loans in Tarrant County?
- Not necessarily. Physician loans often offer flexible terms, but you should compare rates, APR, fees, and PMI against conventional and jumbo options.
What documents speed up approval for a Colleyville purchase?
- A signed offer letter or contract with start date, paystubs if available, W-2s/tax returns, proof of funds, and student loan documentation help avoid delays.
Can I close before my attending job start date?
- Often yes. Many lenders allow it with a signed contract showing your start date and compensation. Timing rules vary, so confirm how close to the start date you can close.
Do physician loans cover jumbo-priced homes in Colleyville?
- Many programs do. If the loan size exceeds conforming limits, a physician-focused jumbo or portfolio loan can fit. Ask lenders for their jumbo maximums and reserve rules.
