Purchasing a house right out of school?

SDN Members don't see this ad. (About Ads)

I was wondering, how difficult is it to get approved for a loan to buy a house right after dental school? Especially if your in my case and will have a loan debt of around 420k. Do most Newly graduated dental students just rent a house for a whole while they pay down the loan debt or what? Thanks

Most new grads don't graduate with 420k in loans. 250k maybe, but 420? What is your circumstance? You will have to speak to your bank.

In your position, I would try to eat away those loans before they eat away at you. Rent an apartment with roommates - live as frugally as you can. Word as an associate until you feel more secure. If you're planning on buying a practice down the road - that's another 600k + overhead and build up

Do you have someone that can support you? A spouse maybe? You need to get that 420 to a more manageable number. A house is not in your best interest.

Originally Posted by toothhornet88

Iif your in my case and will have a loan debt of around 420k.

USC is over 100k/year (living expenses included). It's not that much of a stretch. Most of us are going to be approaching the 400k debt threshold.

Ya I'll be approaching, if not exceeding, 400k in debt after dental school. It's not that unusual at all. I do agree though that I'll be much more interested in getting rid of those loans, for the most part, before I buy a house.

In general, have a 20% down payment and your mortgage should be no more than 36% of your net income after paying student loan. BoA used to have a zero down doctor's loan but that was discontinued during the recession; they did talked to reinstating it so give them a call. You'll be lucky to qualify for some foreclosed shack in Fresno, Sacto, Bakersfield, or Palmdale for $150K. If you move out of Cali, you'll find new foreclosed homes for only $40K which you wouldn't need a mortgage loan.