Physician loan or conventional, in a market that is falling
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
The comparison that works in a rising market does not simply transfer here. In Florida the deposit is doing more than saving you mortgage insurance.
The comparison
| Physician programme | Conventional | |
|---|---|---|
| Rules set by | Lender portfolio guide | Fannie Mae / Freddie Mac |
| Down payment | Up to 100%; 5%-down options | Typically 3–20%+ |
| Monthly PMI | None | Generally above 80% LTV |
| Ceiling | $2M | $832,750 conforming in Florida |
| Student debt | Documented IDR payment | 1% of balance — B3-6-05 |
| Future income | 150 days pre-start | 90 days — B3-3.3-03 |
Strike the ceiling row out
Florida's conforming limit is $832,750 in 66 of 67 counties, and even Naples — the priciest metro at $550,720 — is well under it. Loan size is not a Florida argument. The numbers.
★ And read the deposit row differently than you would elsewhere
In a rising market, putting nothing down is a timing advantage: you are in the asset sooner, and appreciation builds the equity for you.
In Florida right now it is not doing that. Every major metro fell over the year to 2026-08-31. So a deposit here is not only buying you out of mortgage insurance — it is buying a cushion against further decline and against the cost of a slow sale.
That genuinely changes the recommendation. In Texas we tell physicians the deposit is largely a convenience question. In Florida, if you have savings, using some of them is a defensible choice rather than a wasted one. The honest math.
Where the programme still wins clearly
- Heavy training debt. $300,000 counts as $3,000 a month on conventional, whatever you pay. That is what ends most Florida files.
- No deposit at all. If the choice is 100% financing or not buying, and you expect to stay, the programme is how you buy.
- Not yet earning. 150 days against 90 on a signed contract.
Where conventional wins
- You have a deposit and modest debt. At 20% down there is no PMI to avoid, no reach problem, and you own a cushion in a soft market.
- You want standard agency terms rather than a lender's own portfolio product.
Mike's read: Florida is the state in this round where we most often tell a physician they may not need the specialised product — and where putting money down is most likely to be the right call rather than a missed opportunity.
And FHA?
Rarely right for a physician with strong income — it counts 0.5% of a zero-payment student loan balance under HUD 4000.1 and carries its own mortgage insurance structure. The three rulebooks.
Frequently asked questions
Is a physician loan better than conventional in Florida?
It depends on your deposit and your debt. Loan size is not a differentiator because Florida prices sit well below the conforming limit. The programme wins on heavy student debt or no deposit; conventional wins when you have savings, because in a falling market equity at the start is a cushion rather than just a cost.Should I put money down in Florida?
If you have it, there is a stronger case for it here than in a rising market. Every major Florida metro fell year over year as of 2026-08-31, so a deposit buys a cushion against further decline and against the cost of a slow sale, not just relief from mortgage insurance.Does loan size matter for Florida physicians?
Rarely. The conforming limit is $832,750 in 66 of Florida's 67 counties and even Naples, the most expensive metro, has a typical value of $550,720, so conventional financing reaches comfortably at typical prices.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, or licensure advice. Physician-loan program terms, eligible degrees, and overlays are set by the lender and change; Florida FRAME award amounts, eligibility and application cycles change too. Confirm your scenario with us and your program administrator. All loans are subject to borrower and property qualification, including credit and income review.