Closing Before You Start Work in Ohio
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
One document decides two things in Ohio: whether you can buy before you start, and whether the state will repay your loans. It is worth reading twice.
What problem this solves
An incoming attending or fellow signs in winter or spring, starts in July, and wants somewhere to live before then. The income supporting the mortgage has not begun.
Agency underwriting is built for a shorter runway: Fannie Mae's employment rules work on roughly 90 days between closing and the start of employment, so a March closing against a July start falls outside. The physician program extends it to 150 days.
What the contract must show
- The start date of employment, no more than 150 days after the note date.
- Salary or compensation details.
- Compensation covering at least a 12-month period.
An offer letter with a start date and a defined twelve-month compensation figure is the document. One that says compensation is to be determined is not.
The contingency limit
The contract may only include contingencies related to:
- Your receipt of your medical licence, or
- Normal administrative requirements such as background checks, drug testing and fingerprinting.
Anything beyond that sits outside the guideline. A contract contingent on board certification, on credentialling beyond those administrative items, or on a funding or probationary decision needs to be reviewed before you plan a closing around it.
Send us the contract when you receive it rather than when you are under contract on a house.
★★ The Ohio reason to read it again
Ohio's loan repayment program disqualifies anyone with an outstanding service obligation, and the Department's packet names employment contracts that provide loan repayment or impose a service obligation among them, unless that obligation will be fulfilled before the Ohio contract begins.
So the contract you are using to close early may also be the thing that rules you out of up to $120,000 of state loan repayment. Employer-provided loan assistance and a state program are, in Ohio, substitutes rather than complements.
Worth working out which is worth more before you sign. An employer repayment package may be larger, smaller, or tied to a longer commitment. We can help you compare the cash, and the choice itself is yours. What the state pays.
What still has to be true
Credit and income review, property qualification, the student-debt treatment, and the cash at closing.
★ The Ohio version of that last point is mild. Transfer cost is capped at 0.4%, so on a $330,327 purchase the transfer line is at most about $1,321. Closing before your first paycheque still requires cash, but not much of it goes to transfer tax. The statutes.
Why this matters in Ohio specifically
Ohio medicine is heavily system-based and heavily July-start, across Columbus, Cleveland, Cincinnati, Toledo and Akron. A large share of Ohio physician purchases are spring purchases against a summer start, so the 150-day window is the normal case rather than an edge case.
Send us the contract and we will tell you what it supports, on both questions. Call (480) 296-6513.
Frequently asked questions
How early can a physician loan close before the start date?
Up to 150 days before the employment start date, on a signed employment contract. Fannie Mae's agency rules work on roughly a 90-day runway, so a spring closing against a July academic start typically falls outside agency guidelines and inside the physician program's.What does my employment contract need to show for an Ohio physician loan?
The start date of employment, no more than 150 days after the note date, and salary or compensation details covering at least a twelve-month period. Contingencies may only relate to your receipt of your medical licence or to normal administrative requirements such as background checks, drug testing and fingerprinting.Can I have employer loan repayment and Ohio state loan repayment?
Generally not at the same time. The Ohio Department of Health's packet lists employment contracts that provide loan repayment or impose a service obligation among the existing obligations that make an applicant ineligible, unless fulfilled before the Ohio contract begins. In practice they are substitutes, so compare the cash and the commitment before signing.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. Ohio Physician Loan Repayment Program award amounts, eligibility, service terms and penalties are set by the Ohio Department of Health and change; the figures here carry the date we verified them against the Department's published application packet and the Ohio Revised Code, and ODH's own pages cannot be read by automated tools, so confirm your position with the Department. Ohio conveyance fees and county real property transfer taxes are set by statute and by county resolution and change. All loans are subject to borrower and property qualification, including credit and income review.