Buying a house for vet school?

[infomuffin]

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This is my first time posting here - long time lurker. I got into Minnesota's vet school (c/o 2018) and have been looking at housing options in the Twin Cities area and am considering buying a house. I know I will be there for 4 years and looking at housing prices, it just makes sense on a guttural level. For nice houses ~15 min away from campus I am finding places with ~$300-400/mo mortgages. I could cover that easily and still have money left over (from loans) to pay utilities and maintenance (I think). If I got a renter to add ~$400/mo to the pot as well, it might pay for itself. My SO may or may not come to the same city for med school, so it could make sense that way as well. I have excellent credit scores, but have never bought anything this large before and just kind of need help.

Has anyone done this? Know of any tips? Thoughts?

 

[JaynaAli]

We bought the house I live in. I had savings and decided it could go towards a house or tuition...we chose the house and hopefully when it sells after I graduate I can put that money towards my loans. One thing your post doesn't mention is the down payment and closing costs for the house. There are more costs associated with buying a house than just the $400 mortgage payment unfortunately. Also consider that if something breaks, you will be responsible for that upkeep. A landlord will usually have to deal with things like that, but the time to fix things and more importantly the expenses will be on you if you own the house. I'm lucky that my family lives just a couple hours away from me so if I have problems my dad and grandpa come to fix it because they are both super handy. Don't forget about homeowners insurance and property taxes too. Even lawn maintenance is a pain sometimes...yard needs mowed even if you're gone all day for class or clinics.

Tl; dr: I own my house and don't regret it but don't forget all the costs and hassles that go along with home ownership besides just the mortgage payment.

 

[infomuffin]

I do have some savings set aside for a down payment.

 

[MassDVMMPH]

Getting a mortgage might be a bit difficult if you're going to be in school instead of working. Usually banks want to see income from a job rather than from student loans, unless of course you have a co-signer with a job (like a parent).

 

[Psorophoraferox]

Getting a mortgage might be a bit difficult if you're going to be in school instead of working. Usually banks want to see income from a job rather than from student loans, unless of course you have a co-signer with a job (like a parent).

This is why I am renting now. I was in the home-buying process several months before school started (while I was working), but a number of things happened and I wasn't able to purchase before leaving my job to start school. Instantly all the lenders I had been in contact with, who had up to that point been more than happy to give me buckets of money, backed out and told me I was SOL unless I had a co-signer. I still had my (sizeable) down payment, still would be paying *less* for the mortgage than I was paying in rent, but without a traditional employment situation ... no dice.

 

[that redhead]

Another thing to consider is sale of the house when you're done. Hopefully the housing market will have picked up by then, but (as I'm sure you're aware) houses don't usually get sold overnight. What if you decide to do an internship or residency? What if you get a job offer out of state? Do you rent the house and take on the stresses of tenants until it sells? Will you be able to be available to communicate regularly with the realtor back in the area? What if the buyer wants some work done before they buy? etc.

It's a nice idea, especially if it's far cheaper than rent (don't know what you'd pay for rent in that area) but I'd be cautious.

 

[KCgophervet]

I've actually been considering the same thing (and hey in Minnesota as well), and erroneously posted in the Pre-Vet forum about it (because I'm just not used to coming round these here parts). Here is part of that post:

"Been looking for a house to rent with my roommate lately and the price of rentals is fairly steep, and its been hard to find a place that will allow big dogs (honestly, you have a fenced in back yard, why if not for dogs??). Someone suggested that I look into buying a house instead because if you're smart about it you can get a decent place with a mortgage payment lower than paying rent. They also said that it was better to buy while still in school because they won't look at your student loans while you're still a student but that once you graduate all that debt will work against you (not sure about the validity of this statement - purely hearsay from someone who bought a house while she was in undergrad)."

Anyone know if that's true or just BS?

Also I hadn't considered the income situation, I have some $$ saved up that could be used for a down payment (and my parents have told me they will give me my "wedding fund" whenever I want it to use for whatever I want to, they would probably cosign as well). Is having very little regular income a huge detriment?

Finally, I was hoping that after graduation (and hopefully starting a residency somewhere) renting it out would be fairly easy - I'd probably try to recruit more vet students (especially ones with pets that might have trouble finding places elsewhere) to rent it until my residency was over and then figuring out if I'd be able to move back or sell the place.

Pretty familiar with the idea of down payments, but how much are we looking at for closing costs (percentage of the house?)? (It's on my to do list to talk to a real estate agent once finals are done...)

I guess I don't really have anything to add but more questions.

 

[MassDVMMPH]

If your parents are willing to cosign and they have good credit, you'll probably be able to get a loan without a problem. If you get preapproved for a mortgage, your lender should be able to give you an estimate as far as closing costs go at the same time. I would definitely get preapproved first - it lets you know exactly how much you can spend so you don't waste your time looking at houses over your budget.

 

[pandaclaus]

I worked for several years before starting vet school and had savings to cover the down payment + closing costs and my loans would have covered my mortgage, but I also could not get a mortgage without a job (I even applied for the mortgage before I quit my job, but they asked me why I was moving and I was honest...). So, my folks helped me out. It's great having a bit of stability and knowing that I don't need to move for the 4 years of vet school. My roommates are helpful in keeping costs down, but the maintenance part is a bit of a drag. I had to deal with a pipe breaking just before finals, my fridge breaking, now a roof leak, etc.

But, if I sell it for what I paid and keep roommates, I'll still have spent less over the 4 years than if I had rented a relatively inexpensive place in Philly.

 

[StartingoverVet]

I bought my home during vet school.
In hindsight, maybe that is not a great idea.


1- things go wrong with houses and you just don't really need the distraction..
2- if you are leaving the area..selling your home can be a real pain.....mine sold quickly but it was still an added headache.
3- the biggest thing in vet school is SIMPLIFY. The more things to deal with the less happy you will be. A smaller apartment with fewer things in it is my suggestion.
4- keeping a home for 4 years and reselling is rarely financially smart with re transfer taxes, commission, and the. All the loan origination costs etc, title insurance, home insurance , upkeep. The rule of thumb is don't buy of you aren't staying 5 or more years...

 

[WelshCob]

It all depends. If you know you have to sell it right after you graduate then maybe not a good idea. If you can manage it as a rental then it may be a great idea. I purchased my place with my parents. My parents live in a town 45min south of Gainesville. If I move they can manage the place for me and with the current rental market renting this place will still cover all of its expenses and leave me with a profit.

 

[MassDVMMPH]

There was a trailer park right next to my vet school and a lot of vet students bought trailers, lived in them for 4 years, and then sold them to incoming vet students, often for the same price they had bought them for, thus giving them essentially a free place to live (other than the lot rent and utilities). Seemed to work out incredibly well for them, but that's kind of a special case.

 

[B@d@ss Unicorn]

I worked for several years before starting vet school and had savings to cover the down payment + closing costs and my loans would have covered my mortgage, but I also could not get a mortgage without a job (I even applied for the mortgage before I quit my job, but they asked me why I was moving and I was honest...). So, my folks helped me out. It's great having a bit of stability and knowing that I don't need to move for the 4 years of vet school. My roommates are helpful in keeping costs down, but the maintenance part is a bit of a drag. I had to deal with a pipe breaking just before finals, my fridge breaking, now a roof leak, etc.

But, if I sell it for what I paid and keep roommates, I'll still have spent less over the 4 years than if I had rented a relatively inexpensive place in Philly.

So you're at Penn? I'm wait listed for Penn c/o 2018 but they said if I don't get in this year I'm accepted for c/o 2019. I'm looking to buy a house as well but not sure which area and all of that. Do you have any advice on that? If I don't get in until next year I will have some time to look around and get organized but if I get in off of the wait list I will definitely rent for the first year. My boyfriend is willing to help me out and basically buy the house for me and I will do a lease from him with option to buy. That way I can use my loan money. He's not moving with me (at least right away). He rents his house in FL for season and seems to work out well for him so I thought of doing the same thing in Pennsylvania after I graduate. I was wondering about when you do rotations at New Bolton, are you going to stay in the dorms over there?