# Physician Mortgage on an Employment Contract (2026 Guide)

> Physician mortgage employment contract rules for residents and fellows: start-date windows, student loan math, visa issues, buy vs wait. Get a free plan.

Canonical: https://www.masalaloans.com/blog/resident-fellow-mortgage-contract
Author: Apurva Sanghavi
Published: 2026-10-17T18:13:08.952Z
Tags: mortgage, Small business, home buying, personal finance

**Quick answer (updated October 2026):** Yes, you can usually close a physician mortgage on an employment contract before your attending job starts. Conventional loans allow it under Fannie Mae's offer-letter rules, with a start-date window and extra reserves if you have no paystub yet. Physician programs often allow longer windows. Contingencies like licensure, and how your student loans are counted, decide most files.

You're a PGY-3 in Houston, your fellowship ends next June, and you just signed a contract with a group in Plano starting in August. Your co-fellow says "buy now while rates might drop." Your father in Ahmedabad says "rent until you have savings." Your loan officer cousin says "it depends on your student loans."

Your cousin is closest. This guide covers how lenders treat an attending contract, whether buying during residency makes sense, the student loan math that sinks many resident files, and the visa questions IMG residents need to ask early.

## How an attending contract mortgage works

Most physicians don't want to wait for two paystubs before buying in a new city. Lenders know this, and both conventional and physician programs have paths for qualifying on a signed contract.

### The conventional path

As of October 2026, Fannie Mae's employment offer rules (B3-3.3-03, updated October 7) offer two options:

|  | **Option 1** | **Option 2** |
| --- | --- | --- |
| Paystub required before loan delivery | Yes | No |
| Start-date window | None | No earlier than 30 days before the note date or no later than 90 days after |
| Property and loan | Per guide | Purchase, primary residence, 1-unit |
| Income used | Per guide | Fixed base salary only |
| Offer requirements | Per guide | Non-contingent offer, verbal VOE |
| Extra reserves | Per guide | 6 months PITIA, or enough for all debts through the start month +1 |

Option 2 is the one most fellows use. If your attending job starts August 15, you could close as early as mid-May (about 90 days before your start) or as late as mid-September (about 30 days after it) and still fit the window. The full mechanics are in our guide to the [mortgage with an offer letter](https://www.masalaloans.com/blog/mortgage-with-offer-letter).

### The physician-program path

A physician mortgage on an employment contract through a portfolio program often allows a wider window, sometimes several months ahead of your start date. These are lender-specific products, so terms, eligible specialties and visa rules vary.

### The contingency problem

Physician contracts are often conditional on state licensure, hospital credentialing, board eligibility or a background check. Under Fannie Mae's Option 2, the offer must be non-contingent, so those items generally need to be cleared or documented as satisfied before closing. Start your state license application early. It is often the slowest item in the file.

## Residency home loan: buy now or wait?

Buying during residency can work, but the numbers are tight. A hypothetical example, illustration only:

Dr. Rohan Shah, a PGY-2 in Pittsburgh, earns $72,000 ($6,000 per month). He wants a $270,000 townhome with 5% down.

- Loan: $256,500

- Principal and interest at **7.40%**: about **$1,776 per month** (Freddie Mac weekly average, 30-year fixed, Oct 15, 2026; illustration only, not a quote or offer)

- With estimated taxes, insurance, HOA and PMI: roughly $2,500 per month, about 42% of income

Now the student loans. Rohan has $220,000 in federal loans.

| **Student loan status** | **Payment Fannie Mae uses** | **Total DTI with housing** |
| --- | --- | --- |
| Deferred / forbearance | 1% of balance = $2,200 | ~78% (does not qualify) |
| Income-driven, documented $350 | $350 | ~48% (within DU's 50% cap) |
| Income-driven, documented $0 | $0 | ~42% |

Same doctor, same house, opposite outcomes. A deferred balance with no documented payment kills the deal on conventional terms. Enrolling in an income-driven plan and getting written documentation of the payment changes everything.

### When waiting is smarter

- You will move for fellowship or your first attending job within two to three years

- You have no cash for reserves after the down payment

- Your student loans are in deferment and you can't document a lower payment

- Your visa status will change during training (more below)

Selling within a few years usually eats the equity in closing costs. Renting during a short fellowship is often the better call.

**Talk to a loan officer who's seen this before:** Send us your contract and your student loan servicer statement, and we'll run your rate-and-payment scenario at today's pricing under both conventional and physician-program rules. [Book a free call](https://www.masalaloans.com/contact).

## Fellowship buy-house timing checklist

| **When** | **What to do** |
| --- | --- |
| 6–9 months before start | Sign contract; start state license and DEA applications |
| 4–6 months before | Enroll in or confirm income-driven repayment; get written payment letter |
| 3–4 months before | Get pre-approved on the contract; confirm which option the lender uses |
| 60–90 days before | Go under contract on the house |
| At closing | Have reserves in a US account; licensure documented |
| First month | Send first paystub if the lender used Option 1 |

## Visa issues for IMG residents and fellows

Many residents in US programs are on J-1 or H-1B status. Fannie Mae does not keep a list of approved visas. Non-permanent residents are eligible "under the same terms that are available to U.S. citizens," and lenders set their own documentation standards. That said, overlays are common:

- **J-1 residents:** The two-year home residency requirement leads many lenders to decline J-1 holders until a waiver job is lined up. Physicians moving into a Conrad 30 position should read our [J-1 waiver physician mortgage guide](https://www.masalaloans.com/blog/j1-waiver-physician-mortgage).

- **H-1B residents:** Generally workable on conventional loans. Your attending job will need a new or amended H-1B petition; your lender will want to see it.

- **Green card holders:** You have the most options, including FHA. H-1B and J-1 holders cannot use FHA since HUD Mortgagee Letter 2025-09.

Physician programs set their own residency rules, and many restrict non-permanent residents. See [physician loans for IMGs on H-1B](https://www.masalaloans.com/blog/physician-loan-h1b) for how that plays out. If your green card is close, weigh the trade-offs in [buy now or wait for a green card](https://www.masalaloans.com/blog/buy-now-or-wait-for-green-card). Immigration timing questions belong with your immigration attorney.

## Low down payment and PMI

Most attending-contract buyers put down 5–10%. On a conventional loan, that means PMI, which you can remove later as your balance falls or your home appreciates. Our guide on [how to remove PMI on a conventional loan](https://www.masalaloans.com/blog/how-to-remove-pmi-conventional-loan) explains the thresholds. Physician programs often skip PMI, but compare the rate and total cost, not just the monthly insurance.

## What the rules actually say

- **Fannie Mae Selling Guide B3-3.3-03 (10/07/2026, SEL-2026-09):** Option 2 allows qualifying without a paystub for purchases of a primary 1-unit home, fixed base income only, start date no earlier than 30 days before the note date or no later than 90 days after, non-contingent offer and extra reserves.

- **Fannie Mae Selling Guide B3-6-05 (08/05/2026):** deferred student loans use 1% of balance or a fully amortizing payment; a documented $0 income-driven payment can be used.

- **Fannie Mae Selling Guide B3-6-02:** maximum DTI 50% for DU loan casefiles.

- **HUD Mortgagee Letter 2025-09:** non-permanent residents ineligible for FHA for case numbers on or after May 25, 2025.

## Frequently Asked Questions

**Q: Can I buy a house during residency?**<br />A: Yes, if your resident salary supports the payment and your student loans are counted at a manageable amount. The biggest factor is usually whether you can document an income-driven payment. Deferred loans counted at 1% of the balance often push residents over the debt-to-income limit.

**Q: How early can I close before my attending job starts?**<br />A: Under Fannie Mae's Option 2, your start date must be no more than 90 days after the note date (and you can close up to 30 days after starting). Physician programs may allow earlier closings. Ask your lender which rule it uses before you set a closing date.

**Q: Does my contract need to be non-contingent?**<br />A: For Fannie Mae's no-paystub option, yes. Licensure, credentialing or board conditions generally must be satisfied or documented before closing. Some physician programs are more flexible. Start license paperwork early because it often drives the timeline.

**Q: Will lenders count my student loans if they're deferred?**<br />A: On conventional loans, yes: 1% of the balance or a fully amortizing payment, unless you document an income-driven payment. Physician programs often treat deferred loans more leniently, which is a major reason doctors use them.

**Q: Can a J-1 resident get a mortgage?**<br />A: Fannie Mae has no visa list, but many lenders decline J-1 holders because of the two-year home residency requirement. Once you have a waiver job or change status, options improve. Shopping multiple lenders matters here.

## Get your contract-to-closing plan in 15 minutes

Bring your signed contract, start date, license status and student loan statements. We'll run a rate-and-payment scenario at today's pricing, compare conventional Option 1 and Option 2 against current physician programs from our 150+ wholesale lenders, and map your closing window. We're licensed nationwide. Book a free 15-minute call at /contact, start your application at /apply, or call 713-366-4668.

*Masala Loans is a brand of Matador Lending, LLC (NMLS #2072896). Written by Apurva Sanghavi, President, NMLS #227127. Equal Housing Opportunity. This article is general education, not tax, legal or immigration advice — consult a qualified CPA, attorney or immigration lawyer for your situation. Program availability, rates and terms vary by lender and borrower and are subject to change; not a commitment to lend.*