27 Best Hidden Doctor Mortgage Loans in Florida

Famously known as the “Sunshine State,” Florida is a vibrant peninsula bordered by the Atlantic Ocean and the Gulf of Mexico, offering a wealth of experiences. From the enchantment of Walt Disney World and Sea World to the natural splendor of the Everglades, Florida captivates both visitors and residents alike.

The latest data shows that year-over-year, Florida had the highest home price gain in May of 2022, totaling a significant 33.2 percent increase. In fact, Florida has seen an escalation of 78% in the value of homes over the past five years.

Even for the over 56,000 doctors in the state of Florida, purchasing a home can be daunting, given these statistics. As an alternative to conventional mortgages, it may be possible for doctors, dentists and other professionals to take advantage of the state’s physician mortgage loan program. For those that qualify, this could eliminate the necessity for a down payment to acquire a residence in the state of Florida.

Advantages and disadvantages of physician mortgage loans in Florida

Given the high prices for homes in Florida, you will be entering into a serious financial commitment when you take out a physician mortgage loan. For that reason, it’s important to first weigh the pros and cons involved. Unlike a refinance, a physician home loan is used to buy new property. Healthcare professionals use this to avoid having to save substantial down payments, which can be very difficult during residency. Many residents or early career physicians leverage their job offer to help qualify for home ownership with mortgage lenders through special physician home loans.

The list of pros related to doctor mortgages is impressive and includes:

• 100% financing or $0 down payment, in some cases
• Higher loan limits
• No PMI, or private mortgage insurance
• Traditional loans like an FHA might not be an option for you as a medical resident.

Also, banks and lenders who offer doctor mortgages to professionals give special consideration to student debt. Since many professionals such as doctors incurred a good deal of debt during their education, this can be a very significant “pro.”

There are cons involved, too, including:

• Higher limits can cause people to purchase homes that are beyond their means
• At times higher interest rates
• You’re signing up for a monthly payment on that mortgage
• Refinancing the mortgage might not make sense in a rising interest rate environment

Of course, if you do take out funds through a doctor loan program, you will likely have a long-term beneficial relationship with the bank. This can be seen as a pro by most, but some might not want to commit, including the potential of having to open an account with a bank. 

Is a Florida physician mortgage loan right for you?

It’s always important to assess thoroughly whether or not a mortgage is the right fit for you and your finances. A first consideration should involve taking a thorough look at your career and where you see yourself going in the future. Do you foresee yourself staying in your current position for a long time? Or, do you imagine that you will find a new job in short order? Only commit to a doctor mortgage if you believe you will stay on your current career track. 

Also, have you considered that you might be paying a higher interest rate, if you take out a physician mortgage loan? For many individuals, a few points extra on a loan is a fair trade for all the advantages you get with a doctor mortgage. If you would rather find a lower rate, maybe the time is right to hold off and save up toward a large down payment on a conventional mortgage. 

Examples of doctors who might consider a doctor loan in Florida

Let’s take a moment now to look at some of the individuals taking out a physician loan in Florida. These are examples of just some of the professionals benefitting from these financial products in the Sunshine State. 

A physician who has too much student debt

Montell is about to start a pediatric fellowship at Nemours Children’s Hospital in Orlando. His career is on track, and he plans on staying in the city permanently. He has a signed contract in hand, and will be starting his job in a month. 

Finding a mortgage has proven difficult; conventional loans don’t like how much student debt he is currently holding. Plus, some conventional lenders have recommended that he wait until he has been in his new job for several months. 

The time to buy for Montell is now; he will be too busy with his fellowship afterwards. Fortunately, a doctor mortgage gives special consideration to his debt and will accept his signed contract as sufficient proof of income and employment as part of the terms. 

A dentist who doesn’t have a down payment but wants a good interest rate

Sue is a family dentist in Tallahassee. She has a large family, and they are looking for a bigger home. The difficulty is that she doesn’t have a 20 percent down payment at the moment. Perhaps she’s been paying off student loans or practice loans instead of building a padded bank account.

She has put a lot of cash into her practice and, of course, her family’s needs. A doctor mortgage is the only way she can finance a home. Fortunately for Sue, a local bank is offering medical professionals at her income bracket mortgages with 100% financing to help with a home purchase. 

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