Physician Loan or Conventional? In Michigan It Turns on Two Things.
Program and regulatory figures verified October 9, 2026. Details change; confirm your scenario with us.
Two products, and in Michigan the choice comes down to a narrower set of differences than most comparison pages admit.
The comparison
| Physician loan | Conventional | |
|---|---|---|
| ★ Income before you start | signed contract, start up to 150 days out | roughly 90 days, agency runway |
| ★ Student debt in training | built around deferred / income-driven realities | must generally count a payment figure |
| Down payment | programme-specific, often reduced | agency minimums |
| Mortgage insurance | programme-specific treatment | required below 20% equity |
| Loan ceiling in Michigan | ★ not a differentiator: $832,750 in all 83 counties, dearest metro $422,480 | |
| Who sets the rules | the lender: terms vary and change | Fannie Mae / Freddie Mac |
★ Why only two rows really matter here
In a high-cost state the comparison usually turns on loan size and down payment. Michigan removes that argument: the priciest metro in the state is about 51% of the conforming limit.
What is left is timing and student debt. Those are the two rows to read. If neither applies to you, you have been in post for two years and your loans are in standard repayment, the physician product may be solving a problem you do not have.
★ When conventional is the better answer
We would rather say this than sell a product:
- You are established in the job, with two years of pay stubs. The timing advantage is worthless to you.
- Your student loans are modest or repaid. The debt-treatment advantage is worthless too.
- You have 20% down and no mortgage insurance to avoid.
- Your file is clean and you qualify comfortably on agency terms.
In those cases take the conventional loan. Ask any lender to show you both; if they will only quote one, ask why.
When the physician loan earns it
- You are buying before the job starts, the Ann Arbor and Grand Rapids July intake. Why Ann Arbor concentrates this.
- You carry a large training-era balance that a conventional ratio cannot absorb.
- You want to buy without putting a full conventional down payment into a house in your first year of attending income.
★ What we will not do
We publish no rate or payment figure on this site, so we are not going to tell you which product "costs less". That depends on your file, your credit, your down payment and the day. Anyone comparing the two on a published rate is comparing two numbers that are not yours.
Send the contract and the loan position and we will run both, on real pricing, and tell you which one wins on your file.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
Is a physician loan better than a conventional loan in Michigan?
It depends on two things: whether you are buying before your job starts, and how large your student debt is. Michigan removes the usual third argument, loan size, because all 83 counties sit at the $832,750 conforming limit and the most expensive metro is $422,480. An established physician with modest loans and 20 percent down is often better served by a conventional loan.When should a Michigan physician choose a conventional loan?
When the physician product's two advantages do not apply: you have been in the job long enough to show pay stubs, your student loans are modest or repaid, you have 20 percent down, and you qualify comfortably on agency terms. In that situation the physician programme is solving a problem you do not have.Does a physician loan let me borrow more in Michigan?
Not meaningfully. The conforming limit is $832,750 in every Michigan county and the most expensive metro by typical home value is $422,480, so loan size is not a practical differentiator between the two products in this state.Who sets physician loan terms?
The lender. Unlike conventional loans, which follow Fannie Mae and Freddie Mac guidelines, physician programme terms including eligible degrees, down payment, mortgage insurance treatment and student debt handling are set by individual lenders and change over time.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about physician mortgage financing, not a loan commitment and not legal, tax or financial advice. The Michigan State Loan Repayment Program is administered by the Michigan Department of Health and Human Services, not by Cornerstone; its terms, award amounts, priorities and application windows are set by MDHHS and change. Figures here carry the date we verified them against the programme's own published materials. Physician-loan program terms, eligible degrees and overlays are set by the lender and change. All loans are subject to borrower, property and program qualification.