Updated · Mike Certo, NMLS #260555
Arizona Physician Loan — 150 Days Before Start Date
The 150-day pre-start rule is one of the most useful features of the Redwood Sequoia Medical Professionals program. Residents, fellows, and new attendings can close on an Arizona home up to 150 days before their position start date — using projected resident, fellow, or attending income to qualify.
The 150-day rule explained
Under the Redwood Sequoia Medical Professionals program, borrowers are eligible to close on a primary residence up to 150 days before their residency, fellowship, or attending position start date. Income qualifying uses projected resident, fellow, or attending income from the signed offer letter or fully executed employment contract.
Why this matters: residency moves often happen in early summer (June-August). Buyers want to close BEFORE moving so they don't need temporary housing. The 150-day rule lets you close in February-March for a July residency start.
Documentation required
- Signed offer letter or fully executed employment contract — must clearly state position, start date, salary, and any guaranteed bonuses
- Match Day results (for residents matching into a program) — confirms residency placement
- Standard mortgage documents — credit, asset documentation, federal tax returns, ID
- Student loan documentation — see student loan treatment guide
Common 150-day pre-start scenarios
Resident matching into AZ residency program
Medical student matches into AZ residency in March (Match Day). Residency starts July 1. You can close as early as February (150 days before July 1 is approximately February 1). In practice, you'd close in March-April after Match Day confirms placement and you finalize your contract.
Fellow starting AZ fellowship
Resident finishing residency in June at another institution, starting AZ fellowship July 1. Same 150-day rule applies. Use signed fellowship contract for qualifying.
New attending starting first attending position
Fellow finishing fellowship June 30, starting attending position July 15. Sign offer letter, qualify on attending income, close 150 days before start. This is the most common 150-day scenario — and it unlocks higher LTV tiers because attending income is higher than resident income.
Established attending changing positions
Established attending leaving one position, starting new attending position. Same 150-day rule applies if income from new position will be different (e.g., specialty change, relocation).
Timing tips
- Start documentation early. Get pre-approval 30-45 days before you plan to put in an offer. That gives time to resolve documentation issues.
- Sign your offer letter / contract FIRST. Underwriting needs the signed document, not a verbal commitment.
- Account for closing timeline. From contract to close typically takes 30-45 days. Plan backwards from your start date.
- Don't resign your current position until your new loan funds. Underwriting verifies current employment status at closing.
Common reasons underwriting pauses pre-start scenarios
- Offer letter not yet signed (verbal commitments don't qualify)
- Contract has contingencies (board certification, license, credentialing)
- Income doesn't match what's on the offer letter
- Student loan documentation incomplete
- Asset seasoning gaps for down payment funds
Match Day specifics
If you're a medical student awaiting Match Day, you should NOT start house shopping until Match Day results are confirmed. Once your match is confirmed and you have the program's offer letter (typically issued within 30 days of Match Day), you can begin formal mortgage application.
Many lenders WILL pre-approve based on Match Day results plus offer letter, even if formal program contract isn't fully executed yet. Talk to Mike before shopping — signed/fully executed documentation is normally required for underwriting clear-to-close.
Next step
20-minute call. Bring your offer letter or contract status, target start date, target purchase area and price. We map your closing timeline.
Related
FAQ
How early can I close before residency starts?
Up to 150 days before residency, fellowship, or attending start date. Income qualifying uses projected resident/fellow/attending income.
Can I close on Match Day results alone?
Typically no — most lenders require a signed offer letter or fully executed contract for final underwriting. You can begin pre-approval on Match Day results.
Does the 150-day rule apply to all credentials?
Yes, for credentials eligible under the Redwood Sequoia program (MD, DO, DDS, DMD, DPM, DVM, PharmD, ophthalmology, psychiatry, CRNA with DNAP/DNP).
Can I qualify on attending income if I'm still in residency?
Yes — with a signed attending offer letter. This usually unlocks higher purchase price tiers since attending income is higher than resident income.