Physician Loan or Conventional? The Georgia Answer

Program and regulatory figures verified October 7, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated October 7, 2026

Georgia prices are low enough outside Atlanta that the comparison is genuinely open, and inside Atlanta the deposit matters more than the product name.

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The comparison

★ The Atlanta question: how much, not which

Atlanta fell 1.6% over the year to 31 August 2026, to a typical value of $377,428. At 100% financing you start with $0 of equity in a market that moved the wrong way.

So the useful question in Atlanta is not physician loan versus conventional. It is whether to take the maximum. A five-percent-down option exists under the physician programme, and starting with a deposit is a materially different position if there is a real chance you sell within a few years.

We will price 100% and 5%-down side by side on your own numbers. The market data.

★ And outside Atlanta the comparison opens up

At south-Georgia prices — Americus $144,609, Moultrie $168,511, Albany $169,294 — 100% financing is a convenience rather than a necessity on an attending income.

In that situation the physician loan earns its keep on the student-debt treatment and the timing rather than the financing percentage, and a conventional loan with a modest deposit is a real alternative worth pricing. South Georgia.

Where the physician loan clearly wins

When you carry a residency-era balance. On a $300,000 balance agency underwriting may count $3,000 a month under the 1% rule, while your documented income-driven payment is a fraction of that. Against a first-year attending income that phantom obligation is the difference between approval and decline.

And on timing: 150 days against 90 covers a spring purchase for a July start, which is how Atlanta and Augusta academic hiring runs. The debt treatment · The timing.

Where FHA fits

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% LTV.

FHA carries its own mortgage insurance. In Georgia's cheap markets it is a genuine option for a simpler file and deserves pricing rather than dismissal.

Where all three are identical

None finance the transfer tax, the intangible recording tax, recording fees, prepaid items or reserves. The good news is that Georgia's transfer tax is only 0.1% and DOR says the seller is liable, so this column is the smallest of any state we cover. The detail.

★ We publish no intangible recording tax rate, because we have not verified one at a primary source. Your closing agent will show you that figure.

★ And one thing neither loan affects

Georgia's $5,000 rural tax credit. It is not income for qualifying, it does not arrive as cash at closing, and it does not change your debt ratios or your pricing. Whichever loan you take, the credit works the same way.

That independence is actually convenient: decide the loan on the loan's merits and the credit on your tax position. Why.

So which should I take?

With substantial student debt, a start date ahead of you, or a small deposit, the physician programme is usually the better structure. With a large deposit, modest debt, or an Atlanta purchase where you want equity from day one, conventional deserves a direct comparison and will sometimes win.

We price both. Call (480) 296-6513.

Frequently asked questions

Is a physician loan better than conventional in Georgia?

It depends on your student debt and your deposit. With a substantial balance the physician programme usually wins, because it qualifies you on your documented income-driven payment rather than 1% of the balance and can close up to 150 days before a start date. At south-Georgia prices, or with a large deposit, conventional financing deserves a direct comparison.

Should I put money down in Atlanta?

It is worth pricing. Atlanta's typical home value fell 1.6% in the year to 31 August 2026, and at 100% financing you begin with no equity, so selling within a few years could mean bringing money to closing. A five-percent-down option exists under the physician programme and is a materially different risk position.

Does a physician loan have PMI?

No. The physician programme 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 premiums. It is a lender portfolio programme rather than agency financing.

Does Georgia's tax credit affect my mortgage options?

No. The credit reduces Georgia income tax owed; it is not income for qualifying purposes, does not arrive as cash at closing, and does not affect your debt-to-income, deposit or pricing. Whichever loan you choose, the credit works the same way, so the two can be decided independently.

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Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, visa, or licensure advice. Physician-loan program terms, eligible degrees, and overlays are set by the lender and change. Georgia's rural tax credits are set by statute and administered by the Georgia Department of Revenue; the Rural Health Care Professional Credit is subject to a $2 million annual aggregate cap allowed on a first come, first served basis, neither credit carries over, and neither can exceed the taxpayer's income tax liability. Nothing here is tax advice; confirm your position with a tax professional and with the Department of Revenue. Rural county designations are set by statute and census data and change. All loans are subject to borrower and property qualification, including credit and income review.