The physician line of credit,
used properly.

A Physician Line of Credit is a high-limit unsecured revolving line offered by the five major banks. Limits range from $150,000 to $350,000 depending on lender, training stage, and specialty. Rates are prime-linked, typically prime minus a small discount, and interest accrues only on the balance you actually draw.

The defining feature is that a PLOC carries no amortization. There is no forced pay-down schedule. You pay interest on what is drawn, and the principal can sit for as long as you want. That makes it a genuine long-term financing tool, not a short-term loan.

1. Down payment source. Documented PLOC draws are accepted as down payment by most physician lenders, subject to lender-specific cap ratios.
2. Closing-cost cushion. Land transfer tax, legal fees, and adjustments can run $20K-$60K on a physician purchase. The PLOC covers these without depleting savings.
3. Bridge financing. When selling one home and buying another, the PLOC funds the gap between closing dates.
4. Cash-flow buffer. The available balance acts as a cushion against variable-income months or unexpected expenses, which matters most for locum and fee-for-service physicians.

The same flexibility that makes a PLOC useful also makes it the most common drag on physician qualification. Lenders count the PLOC balance against your debt ratios, so a large drawn balance reduces the mortgage you qualify for.

The practical move is to plan the PLOC balance before applying. Paying it down, or timing draws around the application, can directly add to your qualifying amount. The PLOC optimizer tool on this site models prepay-versus-invest decisions with after-tax math.