How much money do you get for "living expenses" during med school? (Buying a condo)

[organichemistry]

I am looking into buying a condo and was wondering how much money I get to live off of (in addition to tuition and what not).

I will only have to borrow about 50 or 60 thousand for tuition and school-related expenses... But I will need about another 1600/month to cover my living expenses (food, mortgage, etc)

Would I be able to borrow that much money at low student interest rates?

Where I am looking to live, the difference in renting an apartment and buying a condo is only 200 or 300 dollars a month so I'm definitely looking to buy... just want to see if it is possible.

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[socal1015]

You should be able to get the amount for living expenses that you're looking for if not thru government loans than thru other private loans.

 

[lilnoelle]

Find out how much is allotted for living expenses through your school. Here's the breakdown for my school. OOS tuition, $34674, Fees 438, Books, 3120, Room and Board, 9018, Personal, 5472, Transportation, 2358, Total, $55080.
So I can borrow a total of $55080. This includes both government and private sources. Sometimes a school will give extra to pay for daycare or unsuspected expences such as healthcare needs, or car repair. The only way to get additional money to live on (in my case to support my two children) is to borrow from sources that do not contact the school to find out about financial need. I've heard those are few and sometimes not trustworthy. (Last sentence could be inacurate)

 

[Sanctuary]

I am looking into buying a condo and was wondering how much money I get to live off of (in addition to tuition and what not).

I will only have to borrow about 50 or 60 thousand for tuition and school-related expenses... But I will need about another 1600/month to cover my living expenses (food, mortgage, etc)

Would I be able to borrow that much money at low student interest rates?

Where I am looking to live, the difference in renting an apartment and buying a condo is only 200 or 300 dollars a month so I'm definitely looking to buy... just want to see if it is possible.

I'm hoping this thread is someone just trolling? You are seriously asking how much money you can *borrow* to then use that borrowed money to borrow more money to buy a 200k+ condo; all while you are unemployed?

 

[lilnoelle]

I'm hoping this thread is someone just trolling? You are seriously asking how much money you can *borrow* to then use that borrowed money to borrow more money to buy a 200k+ condo; all while you are unemployed?

Where did you see that he was going to buy 200K+ condo. He said buying a condo would be $200-$300 more than renting.
If the OP has a family or could find a place to buy for cheaper/same price of renting, buying is a valid thing to do. If I were to rent a place large enough to fit my family of four comfortably, I would definitely have to pay more a month on rent than on my mortgage. Of course, I'm a non trad and already own, so I'm in a different situation, but I can see why someone would be tempted to buy. There have been many threads about buying a house right before med school.

 

[organichemistry]

I'm hoping this thread is someone just trolling? You are seriously asking how much money you can *borrow* to then use that borrowed money to borrow more money to buy a 200k+ condo; all while you are unemployed?

sort of, yes. but the condos im looking at are more like 130-160k, not over 200k. and what's the difference in me having 200,000 in debt while owning a condo and someone having 200,000 in debt (by attending a private school, let's say) and having absolutely nothing to show for it because they rented?

furthermore, i have parents who are very able and willing to cosign for me, but they've made it very clear i am responsible for the payments; they will cosign just so i can get approved. it's a huge favor for me, sure, but it's not going to cost them a penny assuming i can get the 1600 a month, give or take, that i will need to live on... which was the reason i created this thread

 

[lilnoelle]

Ok.... so my question is... the 50-60K your borrowing for tuition and school related stuff.... is that the max your school allows you to borrow? or is that just what you think you'll need for tuition, books, and supplies. If its all you can borrow, according to the school, then that amount also includes your living expenses, and you are probably out of luck.

 

[organichemistry]

Ok.... so my question is... the 50-60K your borrowing for tuition and school related stuff.... is that the max your school allows you to borrow? or is that just what you think you'll need for tuition, books, and supplies. If its all you can borrow, according to the school, then that amount also includes your living expenses, and you are probably out of luck.

i have no idea what my prospective school (i'm applying to dental school for 2007; just posted here because i already tried my luck with the pre-dent crowd and didn't get a whole lot of answers) will allow me to borrow. that's something i need to iron out. the 50-60k figure is tuition, books, and supplies... but not personal living expenses.

 

[lilnoelle]

i have no idea what my prospective school (i'm applying to dental school for 2007; just posted here because i already tried my luck with the pre-dent crowd and didn't get a whole lot of answers) will allow me to borrow. that's something i need to iron out. the 50-60k figure is tuition, books, and supplies... but not personal living expenses.

All right, well, since I don't know what dental school's your applying to, I'll give you a dental scenerio... My brother went to Iowa, he's married, and owned a house while in dental school. (His wife was a elementary ed teacher)
Here's their financial aid workup... Nonresident tuition, $38,481, supplies, 1600, health insurance, 900, SSIMS Usage fee, $6000, Other $1500, Books, 2000, Living expenses, $13115, total $63,596. Most schools have living expenses included into their financial aid packages. You can probably find each school's expense approximates on their webpages. (as I have) It is very possible to pay a mortgage while in school, it is more difficult to get a bank to approve you for a mortgage, but with your parents cosigning, that will be easier. Government loans will cover a max of $38500 a year (interest rate locked at 6.8% starting in July), the rest will have to come from private sources (higher interest rate)
Let me reiterate that you will only be able to easily borrow up to the amount that the school includes in their fin aid package and so a $160K mortgage may be a bit steep. Especially if you aren't planing on having a roomate. I would think that you could find a cheaper condo than that, (130-160K) but I don't know what cities your looking in. My condo (was brand new when I bought it two years ago) in Kansas City is worth ~$105K.

 

[Law2Doc]

sort of, yes. but the condos im looking at are more like 130-160k, not over 200k. and what's the difference in me having 200,000 in debt while owning a condo and someone having 200,000 in debt (by attending a private school, let's say) and having absolutely nothing to show for it because they rented?

furthermore, i have parents who are very able and willing to cosign for me, but they've made it very clear i am responsible for the payments; they will cosign just so i can get approved. it's a huge favor for me, sure, but it's not going to cost them a penny assuming i can get the 1600 a month, give or take, that i will need to live on... which was the reason i created this thread

Bear in mind that the cost of purchasing a condo is not the only cost -- most have condo fees, assessments, property taxes, etc that can end up equal to or exceeding various rents (atop the mortgage, which you already are suggesting is equal to a rent). Also when you rent someplace you are not on the hook when the plumbing, wiring etc goes kaput. You are if you own it.

 

[organichemistry]

Bear in mind that the cost of purchasing a condo is not the only cost -- most have condo fees, assessments, property taxes, etc that can end up equal to or exceeding various rents (atop the mortgage, which you already are suggesting is equal to a rent). Also when you rent someplace you are not on the hook when the plumbing, wiring etc goes kaput. You are if you own it.

yeah... i have figured these into the equation... but thanks for looking out for me

 

[lilnoelle]

Also when you rent someplace you are not on the hook when the plumbing, wiring etc goes kaput. You are if you own it.

At least in the condo I own, anything that is deeper than the walls is covered by the HOA insurance. I believe that includes plumbing and wiring. Technically, when you buy a condo, you are purchasing the living space, and own everything from the wall board inwards... so if you put a hole in the wall, you have to replace it, but if the roof needs replaced, its up to the HOA to take care of it. "maintenance free living"

 

[jackieMD2007]

Watch out for condo hidden costs:

Monthly Assessments (on your unit and parking)
Real Estate Taxes
Special Assessments (can be levied for various reasons)
Homeowner's Insurance
Repairs & Maintenance for your condo

Also, at closing, you will owe $$ to the:
Lender (origination fee, closing fee, appraisal)
Attorney (Attorney's fee)
Title company (closing fees, escrow fee, title insurance, etc)
Condo Association (for assessment reserve, can be 2x your monthly assmnt)
ON TOP of any earnest money you have deposited to your seller.

What concerns me is if you empty your savings for earnest money, closing costs, etc...what will happen if your building has a special assessment? If you have additional expenses that month?

Not trying to put the kabosh on your condo ownership...just some things to consider.

Best of luck to you.

 

[lilnoelle]

My $93,500 (now worth $105,000) condo/townhome (actually a townhome, but called a condo for some reason) costs me... $705 mortgage payment (includes taxes) and $60 a month in HOA fees (includes building insurance, trash, lawn maintenance, and building maintenance). We did have to pay closing costs ~$3000 when we purchased it but that was because we bought it new. Most home owners expect to have to pay closing costs for their sellers. Generally prices are marked up enough to cover closing.

 

[lilnoelle]

The big expense is usually the downpayment. A first time home owner can potentially get a no down payment loan, but their interest rate will be higher. The smartest thing is to pay 20% down so you won't have to pay mortgage interest, but most people starting out can't do that. (me neither) It is common to pay 3% or 5% down.

 

[jackieMD2007]

Besides the condominium reserves and the cost of the condo itself, closing costs are NOT from the seller. State to state, there are even fees and taxes that are customary for the seller to pay on behalf of the buyer. Depends on the state, county, etc.

The closing costs to the buyer come from:
Title company (Title insurance, closing fee, etc)
Lender (Origination, application, if they escrow your taxes or not, prorations..)
Taxes (City, State, County...who pays for or splits this depends on your state...in IL some counties are very expensive, and are a buyer charge)
Insurance

My point in this was for the OP to consider the true cost of the unit:
Loan Interest (Long Term), Loan Fees (at closing)
Closing Costs (Title co, lender, taxes)
Monthly assessments (which can always be changed), Real Estate Taxes
Special assessments

 

[jackieMD2007]

The big expense is usually the downpayment. A first time home owner can potentially get a no down payment loan, but their interest rate will be higher. The smartest thing is to pay 20% down so you won't have to pay mortgage interest, but most people starting out can't do that. (me neither) It is common to pay 3% or 5% down.

Yes but the earnest money goes towards the purchase of the condo itself.
If the condo costs 100K, and you have already given 10K, and your lender is coming in with a loan for 90K (90% financing), then you have satisified the price of the condo. Great. But wait---there's more!

Also on the settlement statement you will need cash (above and beyond your down payment) for all of the additionals: lender fees, title fees, assessment reserves, transfer taxes, atty fees, etc.

 

[lilnoelle]

I'm sure there are differences in different states. In my city, the sellers have their own closing costs, I think ours will be something like $1000 (once someone buys it ) but often (in my city) it is worked into the contract that the seller pays for the buyers closing costs. At least my own experience, and those that I know around my area, it is pretty uncommon for the seller to turn down a full price offer if the buyer demands their closing costs covered. The only thing I have to pay for the house I'm buying is the $400 appraisal fee (due up front in order to get a loan) and $350 inspection fee (optional if individual wants inspection done).
Of course, I'm planning on keeping some extra cash on hand, cuz theres a good chance something (and nearly everything) will go wrong with the house once we move in.

 

[lilnoelle]

you mean the earnest money goes into the downpayment, right?

 

[jackieMD2007]

Noelle,

Good point.

Depends on who the OP is buying the condo from. If he is buying new development or a conversion (directly from a developer), usually those contracts do not include closing costs, or at best give a % of the purchase price as an incentive credit at closing.

Also depends on what is usual & customary in the area where the OP lives. For example, if the OP lives where YOU live, and the seller is NOT offering to cover his closing cost, the OP is getting a raw deal.

 

[lilnoelle]

agreed.

 

[jackieMD2007]

you mean the earnest money goes into the downpayment, right?

The "earnest money" and the "downpayment" are the same thing if what we are both describing is the money given up front to the seller with the contract, that gets deposited in an account and credited toward the purchase of the home at closing.

 

[lilnoelle]

Well, we give $1000 earnest money that is nonrefundable if the buyer backs out of the contract without good reason. Then at closing, the rest of the downpayment is due.

 

[jackieMD2007]

Well, we give $1000 earnest money that is nonrefundable if the buyer backs out of the contract without good reason. Then at closing, the rest of the downpayment is due.

Right, because the amount of the downpayment + amount of loan should equal the contract sales price.

Only $1000? Wow.

Large developers usually require much more. Again, a difference between buying from a developer and an individual homeowner.

 

[riceman04]

you guys pretty much ran him/her/shim (hey you never know nowadays) out of here

 

[jackieMD2007]

you guys pretty much ran him/her/shim (hey you never know nowadays) out of here

At the very least, the OP should take away from this discussion that buying a home is complicated and has a lot of costs....

 

[organichemistry]

nah you guys didn't run me away. i learned a lot... but i knew about most of these hidden costs... and even with all that i feel buying > renting, even at this stage in my life (i'm just 20).