Physician Loan or Conventional? The Ohio Answer
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
In an expensive state a physician loan is what makes the purchase possible at all. In Ohio it is what makes the paperwork work, which is a different argument.
The comparison
| Physician loan | Conventional / agency | |
|---|---|---|
| Max financing | up to 100% | up to 97% on some programs |
| Mortgage insurance | None | Generally required above 80% LTV |
| Student debt | Documented income-driven payment | 1% of balance (Fannie B3-6-05) |
| Pre-start closing | up to 150 days | 90 days (Fannie B3-3.3-03) |
| Loan size | to $2M | $832,750 in all 88 OH counties before jumbo |
| Asset depletion | Supplemental only, 3% return, US accounts | Program dependent |
| Guideline source | Lender portfolio | Agency |
| Ohio transfer cost | ★ Not financed (but capped at 0.4%) | ★ Not financed |
★ Which difference actually matters in Ohio
The student debt one, almost every time.
Ohio prices are low enough that the 100% financing is a convenience rather than a necessity for most attendings, and the $832,750 conforming limit is irrelevant in all 88 counties. What does bite is a $300,000 residency balance counted at $3,000 a month against a first-year income.
So the honest framing for Ohio: take the physician loan for the debt treatment and the timing. The no-PMI is a bonus. How the debt is counted.
What is no-PMI worth?
It removes a monthly cost that exists only because of your down payment size. Above 80% loan-to-value, conventional mortgage insurance is the price of a small deposit, and the physician program prices that risk differently and does not charge it.
We will not put a dollar figure on it, because it depends on loan size, coverage and pricing, and we do not publish rates. We will show you both structures on your own numbers.
The timing difference
150 days against 90. For an Ohio academic hire with a July start, a spring purchase sits outside the agency window and inside the physician one. Columbus, Cleveland and Cincinnati all run on that calendar.
Where does FHA fit?
HUD Handbook 4000.1 caps purchase loan-to-value at 96.5% of adjusted value, the familiar 3.5% minimum down payment, and sets credit tiers: at or above 580 you are eligible for maximum financing, while 500 to 579 is limited to 90% loan-to-value, meaning ten percent down.
FHA also carries its own mortgage insurance. In cheap Ohio markets FHA is a genuine option for a buyer with a smaller balance and a simpler file, so it deserves to be priced rather than dismissed.
Where all three are identical
None of them finance Ohio's transfer cost, recording fees, prepaid items or reserves. The good news is that Ohio's transfer cost is capped at 0.4% by statute, so the identical column is small here: at most about $1,321 on a Columbus typical home. The statutes.
That is the opposite of a state like Pennsylvania, where Philadelphia's 4.578% makes the unfinanced cash the dominant consideration.
So which should I take?
If you carry substantial student debt, or you have a start date ahead of you, or your deposit is small, the physician program is usually the better structure. With a large down payment, modest debt and a flexible timeline, conventional deserves a direct comparison, and in Ohio it will sometimes win.
We will price both and show you the difference. (480) 296-6513.
Frequently asked questions
Is a physician loan better than conventional in Ohio?
It depends mainly on your student debt. The physician program avoids mortgage insurance at up to 100% financing, qualifies you on your documented income-driven student loan payment rather than 1% of the balance, and can close up to 150 days before a start date. Because Ohio prices are low and the $832,750 limit applies in all 88 counties, the debt treatment is usually the deciding feature rather than the financing percentage.Does a physician loan have PMI?
No. The physician program offers up to 100% financing with no private mortgage insurance. Conventional financing generally requires mortgage insurance above 80% loan-to-value, and FHA carries its own mortgage insurance premiums. It is a lender portfolio program rather than agency financing.What credit score does FHA require in Ohio?
HUD Handbook 4000.1 states that a borrower with a minimum decision credit score at or above 580 is eligible for maximum financing, which is 96.5% loan-to-value on a purchase, while a borrower between 500 and 579 is limited to 90% loan-to-value. The physician program sets its own credit requirements, which we do not publish for Ohio because they are not asserted in the guideline set.Will any loan cover Ohio transfer costs?
No, transfer costs are cash due at closing under every loan program. The good news in Ohio is that they are capped at 0.4% by statute, being a mandatory 0.1% under ORC 319.54 plus up to 0.3% a county may levy under ORC 322.02, so on a Columbus typical home of $330,327 the maximum is about $1,321.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.