Florida Physician Mortgage Loans in 2024

To be frank, it appears that a lot of people are relocating to Florida nowadays. For medical professionals considering the move, obtaining a physician mortgage loan in the Sunshine State could be the missing element to complete the transition.

In the following article, we will discuss the reasons behind the relocation of physicians to Florida, the advantages of a physician mortgage, the top lenders for physician mortgages in Florida, and an overview of the housing market in the state known as the Sunshine State.

 

Why Physicians Move to Florida

Why relocate to Florida besides the sunny beaches and Disney World? There are actually multiple factors that attract physicians to the state. One of the main reasons is the low taxes, with a sales tax rate of 6% and no state income tax for residents. This is especially beneficial for doctors with high incomes. Additionally, the aging population in Florida has a high demand for healthcare, making it a desirable location for physicians. However, it is not just older retirees who are moving to the state, as it is also drawing in younger individuals. According to research from the Safety Net Hospital Alliance of Florida and the Florida Hospital Association, Florida is projected to have a shortage of 17,924 physicians by 2035.

Considering this pattern, it is logical to conclude that Florida has a large number of hospitals. This is also a contributing factor for physicians choosing to relocate there, as there is a high demand for medical professionals. As reported by the American Medical Association, the following are among the top-rated medical residency programs in Florida for internal medicine:

• University of Miami, JFK Medical Center Palm Beach
• AdventHealth Florida (Orlando) program
• Florida Atlantic University Charles E. Schmidt College of Medicine program
• University of Miami, Jackson Health System program
• Cleveland Clinic (Florida) program
• Mount Sinai Medical Center of Florida program
• University of Florida
• HCA Healthcare East Florida Division GME
• Palmetto General Hospital program
• University of Miami Hospital and Clinics

The Florida Housing Market Landscape

As reported by Zillow, the median cost of houses in Florida stands at $388,454 with an increase of 2.5% in the last year (as of 2024). This suggests that the state may be becoming less affordable compared to previous years. The top five most desirable locations in Florida, based on livability and affordability, are as follows:

• Naples
• Melbourne
• Jacksonville
• Pensacola
• Tampa

If you are a medical professional, such as a doctor or resident, and are contemplating relocating to Florida for work, you can benefit from its beautiful beaches, absence of state income tax, favorable climate, robust economy, and of course, a large patient population.

The Best Mortgage Loans for Physicians in Florida

With LeverageRx, dentists, surgeons, veterinarians, chiropractors, nurse practitioners, dermatologists, and other medical professionals can easily find the best physician mortgage loan lenders. Not all lenders offer their physician mortgage program in every state, and not all lenders cater to every medical specialty. By completing this form, you will be connected with a personalized list of lenders that align with your preferences for home loans, down payments, medical specialty, state, and purchase timeline. This service is completely free and takes less than two minutes. In the meantime, here are several options available for those in the Sunshine State:

BMO

BMO operates nationwide, covering all 50 states (except NY). Their specialized loan program for doctors is limited to MDs, DOs, and dentists. If you hold one of these degrees, you may be eligible for a loan of up to $1MM with 1000% financing. For further details, refer to our BMO Physician Loan Review.

Fifth Third Bank

Fifth Third Bank has a presence in 11 states and provides physician mortgages for MD, DO, DDS, DMD, DP, DVM, and OD designations. They also offer financing of up to $1 million at 100%, up to $1.5 million at 95%, and up to $2 million at 90%. Find out more: Review of Fifth Third Bank’s Physician Loan

First National Bank

First National Bank provides full financing of up to $1.25MM for individuals with the following professional titles: MD, DO, DDS, DMD, DVM, and PharmD. This loan can be used for both primary residences and vacation homes. Find out more: Review of First National Bank’s Physician Mortgage

TD Bank

One of TD Bank’s notable offerings is their mortgage program for medical professionals. However, it should be noted that the bank’s services are not available in all 50 states. Nevertheless, they provide 100% financing for up to $1MM for individuals with MD, DO, DPM, DDS, and DMD qualifications. For additional information, please refer to the TD Bank Physician Mortgage Review.

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What is the Benefit of a Doctor Home Loan?

By now, you may have reached this point in the article and are uncertain about the reasons for selecting a physician mortgage instead of a conventional loan. This is a valid question!. To address it, here are the main points of a physician mortgage.

• Private mortgage insurance (PMI) is typically required for those who put down less than 20% as a down payment, but doctors are exempt from this, resulting in significant savings over the loan term.
• Despite having a high debt-to-income ratio (DTI) due to student loans and a lower starting salary, doctors are still eligible for physician mortgage programs as these lenders do not use the DTI standard.
• In some cases, residents and doctors may not have to provide a down payment at all, and some lenders even offer financing up to 103%, essentially paying the borrower to take out a mortgage.
• While conventional mortgages require a work history, this is not a requirement for doctors and residents when applying for a mortgage.
• Physician mortgage programs typically have higher loan amounts available compared to conventional mortgages, with some lenders offering loans of $1 million or more.

Homeownership Laws and Taxes in Florida

The Florida Department of Revenue states that the evaluation of all real estate within a county is carried out by county property appraisers on January 1 of each year. Property appraisers send a Notice of Proposed Property Taxes in August, while the county tax collector issues a tax bill to property owners in late October or November. The payment of taxes is required by March 31 of the following year. A useful infographic is published by the Florida Department of Revenue, illustrating the process of property tax in Florida.

It should be noted that the tax roll assigns an assessed value which is subject to yearly adjustments. This is advantageous as it avoids sudden increases in property tax payments. Nevertheless, it should be acknowledged that a significant increase in taxes may occur after the initial year. Moreover, there are certain exemptions available under the Florida Constitution that can be claimed. The most frequent one is a $25,000 deduction from the assessed value of the property, which requires annual application.

FAQ about Physician Mortgages in Florida

As a resident, fellow, or doctor, even though you are able to secure a special mortgage through a physician mortgage program, there are still numerous fees and charges to take into consideration when purchasing a home. It is also crucial to be aware of various laws specific to Florida that could affect your budget. For instance, if you are relocating from a different state, you may not be aware of laws unique to Florida, such as restrictions on harvesting natural vegetation like sea oats and sea grapes, or interfering with manatees and sea turtles. Additionally, it is important to note that you only have ownership of your property up to the point where the sand meets the water (the mean high-tide line).

To put it differently, there are still many considerations to be made and it is advisable to consult with a loan specialist who focuses on doctor home loans in Florida for your specific field. They will address any inquiries you may have. In the meantime, the following are common expenses and fees to keep in consideration when buying a home:

• Closing costs: Are closing costs still required for physician mortgage loans? Yes, closing costs are the charges that the lender passes on to the homeowner for fees like application, credit check, HOA, loan origination, title searches, title insurance, deed recording, and credit report.
• Home inspection: A certified home inspector conducts home inspections to identify any issues with the property. For instance, if the inspection reveals a cracked foundation or a damaged roof, the buyer may have the option to back out of the purchase. The cost of the inspection is separate from the closing costs.
• Earnest money: Earnest money, also known as a “good faith deposit,” is a sum of money put down by the buyer before closing to demonstrate their commitment to purchasing the property.
• Real estate agent costs: The good news is that the seller typically covers the real estate agent fees for the buyer. These fees can vary depending on the location, but there are cases where the buyer may be responsible for paying them.
• Property taxes: Property taxes contribute to services like schools, road maintenance, and emergency services. The buyer may pay a prorated amount for property taxes, while the seller covers the rest.
• Homeowners insurance: Homeowners insurance protects the home and personal belongings from damage and certain risks. It is a mandatory requirement for obtaining a mortgage, and opting out is not an option.
• Homeowners association (HOA) fees: If the property is part of an HOA, the buyer may have access to amenities like pools and tennis courts. The buyer may also have to pay a prorated fee for HOA fees or the cost of transferring governing documents. It is crucial to understand all of the fees, restrictions, and regulations of the HOA.