Buying a house for medschool?

[iduwanna]

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I have just enough money for a 20% down payment, but haven't worked for over three years while in undergrad.

Anyone know if I could use my medschool loans and down payment to qualify for a mortgage?

It seems like it would be so much better to make monthly payments on a home than pay even more for rent.

I did a search and couldn't find an answer to this.

 

[tideleonheart]

I have just enough money for a 20% down payment, but haven't worked for over three years while in undergrad.

Anyone know if I could use my medschool loans and down payment to qualify for a mortgage?

It seems like it would be so much better to make monthly payments on a home than pay even more for rent.

I did a search and couldn't find an answer to this.

The only way I qualified was because my wife had a job. I doubt you'd be able to get a lender if you don't have any income. Yes, I realize that you have a "living expenses" section in your student loans, but that isn't how mortgage lenders work (paying debt with debt). If you have a S/O with income though, it's a different story.

My wife and I did qualify, but we didn't go through with it... now we're really glad we didn't. We may move to a different location for 3rd and 4th year rotations. I mean, at MOST you'll be living in your house for 4 years... is it worth going through the massive hassle of selling a home?

 

[ArkansasHogMD]

What if you had a family member cosign. For example,
my grandmother would cosign for me and she owns a few houses and had perfect credit

 

[starfishprime]

I mean, at MOST you'll be living in your house for 4 years... is it worth going through the massive hassle of selling a home?

Hardly. Plenty of people do residency at the same hospital as their med school. Even more people do residency in the same city as their med school.

 

[WellWornLad]

I have just enough money for a 20% down payment, but haven't worked for over three years while in undergrad.

Anyone know if I could use my medschool loans and down payment to qualify for a mortgage?

You can use med school loans to pay the mortgage, which means you're paying interest on top of interest. I very much doubt that the amount budgeted for room/board by the school would cover your average mortgage, however.

There is no way in hell you can use your med school loans to "qualify" for a mortgage. Although I'd love to see how that conversation goes between you and your banker.

It seems like it would be so much better to make monthly payments on a home than pay even more for rent.

If your rent costs more than projected mortgage payments of a house you can afford, you are paying way too much in rent.

When you rent, all you have to worry about is rent. When you own a home, you have to worry about:

- mortgage payments
- property taxes
- maintenance costs and fees
- home insurance
- furnishings and appliances

Yes, you can actually spend more money owning a home than renting, even after compensating for equity.

So while a 20% down payment is great, and I'd love to know how you have that kind of scratch without working in undergrad, I would keep at least that much aside after the sale to cover other expenses throughout the year. You're not going to want to, say, fix the roof by yourself while you're studying anatomy.

 

[WellWornLad]

Hardly. Plenty of people do residency at the same hospital as their med school. Even more people do residency in the same city as their med school.

Yes, but 1) most people do not stay in the same place after medical school, and 2) it's not exactly under your control. So "hardly" might be overstating it a bit.

 

[iduwanna]

I guess the cheap homes that I saw listed are in seedy neighborhoods and/or in need of repairs. I'll probably save myself the headache and rent.


Thanks for the comments.

 

[sumstorm]

You can't use student loans to obtain the mortgage. You could use a cosignor.

I did buy a house for school (vet) and I will live in this place for 4 years. This is my 4th house, it is a handman special, and I already own all the necessary tools and have all the necessary skills. I also plan on having housemates.

It IS possible, in some parts of the country, to buy a house where a monthly mortgage + maintenance is cheaper than rent. However, that is very dependent on region AND your real estate savy. Also, a house can be a very big headache. I have a partner that can be home if we need a professional plumber for some reason (though, so far, the only professionals we have hired are HVAC.) Also, for me, it means I am working my rear off the summer before entering vet school. We bought our houes for $20k less than independent (non bank related) appraisal, and are making cosmetic improvements for a couple hundred dollars. Location is important...old neighborhood, well established. House was just UGLY (think neo-carribean color theme throughout.) Oh...and the sale was by a motivated seller.

So, the answer to whether it is worth it comes to 'it depends' and 'where are you in your life.' However, you won't get a bank loan based on student loans for income.