Buying a home as a resident, fellow or new physician in Florida

Residents and new attendings ask me some version of the same question. Should I buy now, or wait until training is over? I can't answer that for you, and neither can a calculator. What I can do is help you ask the right questions, so the decision is yours and you make it with real numbers in front of you.

I'm a REALTOR®, not a lender, a tax professional or a financial advisor. So for the money side, talk to a licensed loan officer and a tax professional. This guide is about what to ask them, and what to know about Florida before you do.

What a physician mortgage program is

Some lenders offer loan programs built for physicians and other medical professionals. You'll hear them called physician loans or doctor loans. There isn't one standard version. Each lender sets its own terms, and those terms can change, so the only way to know what you'd get is to ask a few lenders and compare.

Here's what I'd ask each one:

• Down payment. What's the minimum, and does the rate or fee change if I put down more?
• Mortgage insurance. Is private mortgage insurance required? On a conventional loan, PMI usually comes up when you put down less than 20 percent, and it protects the lender, not you (CFPB).
• Student loans. How will my student loan payments be counted? Your debt to income ratio is all your monthly debt payments divided by your gross monthly income (CFPB), so the way a lender counts those loans can change what you qualify for.
• Employment contract and start date. Can I close before my first day using my signed contract or offer letter? How far ahead of the start date can we close?
• Rate type. Is the rate fixed for the life of the loan, or can it adjust?
• Reserves. How much cash do I need left in the bank after closing?

Once you apply, the lender has to send you a Loan Estimate within three business days (CFPB). It's a standard form, which makes it easier to line two or three lenders up side by side.

Buying before your first paycheck

This part can catch people off guard. You may want to close before you've ever been paid by your new employer.

Some loans allow that. For conventional loans it buys, Fannie Mae has a section of its Selling Guide on employment offers or contracts. Under one of its options, the lender reviews a fully executed, non-contingent offer or contract, the start date can't be more than 90 days after the note date, and the lender has to document extra reserves. If your job has conditions, the lender must confirm before closing that they've been met.

Physician programs don't always follow those same rules, which is exactly why you ask. Get the lender's answer in writing, and give yourself some cushion around your start date.

Your Florida medical license and the timeline

Licensing isn't a real estate question, but it can affect your timeline, especially if your contract depends on it. Here's what the Florida Board of Medicine and Florida law say:

• Residents, interns and fellows who don't hold a full Florida license have to register with the state, and that registration expires automatically after two years unless the board approves renewal (Section 458.345, Florida Statutes).
• For a full unrestricted MD license, graduates of U.S. allopathic schools need at least one year of approved residency training (Florida Board of Medicine).
• Initial applicants submit fingerprints through a Livescan provider, and the board won't issue a license without the background check results (Florida Board of Medicine).
• An incomplete application is valid for one year, and the board says it can take up to 10 business days to issue a license once your application is complete (Florida Board of Medicine).

If you're a DO, your license goes through the Florida Board of Osteopathic Medicine instead. Either way, check your own board's current requirements and your employer's credentialing timeline before you pick a closing date.

Florida taxes worth knowing

Florida doesn't impose a personal income tax (Florida Department of Revenue). Property taxes still apply, so look at them closely.

The homestead exemption can lower the taxable value of your primary residence by as much as $50,000 (Florida Department of Revenue). To qualify, you need to hold title and make the home your permanent residence on January 1 (Section 196.031, Florida Statutes). The second part of that exemption doesn't apply to school district taxes (Section 196.031). You file with the county property appraiser on or before March 1 (Section 196.011, Florida Statutes).

So if you close in July, the January 1 date that matters is the next one. A tax professional can tell you how that plays out for your situation, and my first time buyer guide covers the homestead basics too.

Renting or buying for a three year residency

I'm not going to tell you which one is right. These are the questions I'd want answered first:

• Do you expect to stay in Northeast Florida after residency, or is a fellowship somewhere else likely?
• If you sell in three years, what would it cost? My closing cost calculator gives you a rough idea for both sides.
• If you'd keep the home and rent it out, are you ready to be a landlord, maybe from another state?
• What's the full monthly cost with taxes, insurance and any HOA or CDD fees? The monthly cost calculator includes those.
• After closing, how much cash would you have left for a car repair or a slow month?

I own and manage rentals myself, so I'm happy to be honest about what being a landlord actually involves. It isn't passive.

Where I fit in

My job is the house: the search, the tours, the offer and getting to closing. If you're not sure you're ready, start with my home buying game plan. There's no cost for it, and I'll point you to licensed loan officers for the parts that need one. Before we tour, you'll sign a written buyer agreement, and my buyer representation page explains it in plain language.

I'm a registered nurse too, and I've worked twelve hour shifts, so I'll schedule calls and tours around your rotations. If you're still deciding where to live, my guide on moving to Jacksonville for a hospital job maps the major hospital campuses against the communities on this site.