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Anyone else thinking of buying a house?

Discussion in 'Medical Students - MD' started by Coalboy, May 14, 2002.

  1. Coalboy

    Coalboy Senior Member

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    Hey,

    Is anyone else thinking of buying a house and renting rooms to help pay for the mortgage? (Anyone who is not independently wealthy, that is) Would a bank even consider giving me a mortgage, considering I would be paying it with a combination of rent and student loans? I'd prefer not to throw away four years of rent if I don't have to. Granted, I'd have the extra hassle of being a homeowner, but I might be willing to take that on.
     
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  3. mpp

    mpp SDN Moderator
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    Check with <a href="http://www.physcianloans.com" target="_blank">www.physcianloans.com</a> . They have experience with giving loans to residents and medical students.
     
  4. Darth Vader

    Darth Vader Banned
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    Even if banks would allow you to purchase a home (which I don't think that they would, most of the times you need at least 20% down payment and you can't pay for the mortgage with student loans); I wouldn't recommend it for anyone who is only planning on living there a few years (4-8). The real estate fees alone are ~7%, and then you have bank fees and you have to go to the trouble of trying to sell the house X number of years down the road with no idea about how the market will be then making it all not worth it.
     
  5. mpp

    mpp SDN Moderator
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    You can pay the mortgage with financial aid as they give a housing allowance. Coming up with a down payment is another matter. You could put down less than 20 percent but then the bank will probably require you to pay for Private Mortgage Insurance which can be expensive. Talk to a loan counselor at a bank.

    I would also suggest you look at condos rather than houses. Although you will have to pay the monthly association fees, they can be well worth the convenience of not having to mow your own lawn, fix the porch railing, etc., etc.
     
  6. omores

    omores sleep deprived

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    There's been rather a rash of house-buying among my classmates recently. As far as I know, they all had co-signers (i.e., Dad), as well as help with down payments. Is that an option for you, or are you on your own?

    All of them are renting rooms to help cover the mortgage. Seems to work out very well. I'm jealous.
     
  7. edmadison

    edmadison 1K Member

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    </font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif">Originally posted by Darth Vader:
    <strong>Even if banks would allow you to purchase a home (which I don't think that they would, most of the times you need at least 20% down payment and you can't pay for the mortgage with student loans); I wouldn't recommend it for anyone who is only planning on living there a few years (4-8). The real estate fees alone are ~7%, and then you have bank fees and you have to go to the trouble of trying to sell the house X number of years down the road with no idea about how the market will be then making it all not worth it.</strong></font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">This is terrible advice. Buying a house was the best thing I ever did. My mortgage payment is less than my rent was plus I have a huge tax deduction. I was careful, I bought a house in a nice neighborhood within walking distance of the medical center. There is fairly high turnover with new residents comming in every year so selling it will not be too tough. There are tons of other advantages. I don't have to fight for parking, I don't have to worry about the idiots above me working on their carving project at 3 AM (oh my god the hammering), I don't have to worry about the pot smoke wafting from those who lived below me (an advantage for some of you no doubt).

    Here's what you need:

    1) In your area, is the price of a home low enough so that the mortgage payment is comparable to a rent payment? Don't forget to factor in taxes and utilities.

    2) Do you qualify for an FHA loan which will allow you only to put down 3% (yes -- 3%)!?

    3) Does someone love you enough (with an income and good credit) to co-sign the loan?

    4) Are there good homes in a neighborhood where the market is stable and that has decent resale potentional?

    5) Will the tax deduction be an advantage to you?

    My wife and I will own our home for three years (unless I match here). We figure that we will break even on the house because the tax advantages will balance off the fees and closing costs.

    Ed
     
  8. RainaNoelle

    RainaNoelle Member

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    We're building a house actually (but my husband and I are older...mid-thirties). I'd still recommend buying though. Check with your school also. For example, Republic Bank has a program for med students and residents at the Univ. of Kentucky where they have a 0% down, no PMI loan (and since it's for students they must know you'll be paying with loans). In case you don't know, PMI is mortgage insurance (charged when you have less than 20% down payment normally), and can't be written off on your taxes (whereas your interest can be written off).

    Anyway, if you have any questions, let me know!
     
  9. lamyers1

    lamyers1 Senior Member

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    For anyone down South, Southtrust will finance med students %100 for a house with only loans as income. Of course, with me, they said my debt to income would be too high. Duh, I'm a student!
     
  10. Careofme

    Careofme Senior Member

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    What are the cost differences/benefits involved with buying a house vs. renting a condo?

    I will most likely be in Florida - I hope - so I know that condos abound...

    Careofme
     
  11. mongoose

    mongoose Banned
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    Raina, check your pm's please.
     
  12. oldman

    oldman Senior Citizen
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    my student host at duke was living in a house with a bunch of other guys. the mortgage payments were about the same as paying for an apartment except you get a house in the end. viola nice housing for a reasonable pay.
     
  13. Coalboy

    Coalboy Senior Member

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    Thanks for the info everyone! I appreciate it.
     
  14. RainaNoelle

    RainaNoelle Member

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    Mongoose, you should have a PM back from me from early this evening. :) Let me know if you have any more questions.
     
  15. mma

    mma Senior Member

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    I will be MS-I in the summer and my husband and I just bought a townhouse. It was the only thing that made sense for us--the mortgage, taxes + condo fee ends up being less than what we would pay for an apartment.

    Plus, after having spent approximately $50K in rent over the last 5 years with nothing to show for it (aside from the fact that we had shelter, but you know what I mean), we just could not do it anymore. We found a deal on a house and ran with it.

    And I am dying to move in! :D

    mma
     
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  17. nebula7

    nebula7 Senior Member

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    this link might be helpful to those deciding whether to rent or buy, and you might also want to look on money.com:

    <a href="http://quickenloans.quicken.com/lpcontent/CnUtPage/ql/content_3col/mtc_hbc_rent_v_buy.en.html" target="_blank">http://quickenloans.quicken.com/lpcontent/CnUtPage/ql/content_3col/mtc_hbc_rent_v_buy.en.html</a>
     

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