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Has anyone in the medical school bought a house near your school instead of renting an apartment? How was the process? Would you recommend it?
Buying a house vs renting?
- Thread starter fliflopmaestro
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I currently know a PA student who bought a home during his undergrad up to his current year in school. Said it was a 1500 sq. ft / 3 bed / 2 bath. Got it for 150K but had a very difficult time getting it finalized. After a cosigner + background proof of medical retirement income + BAH notarized letter, he eventually got it. Apparently he put all his BAH ( $2400 - 2500 in his region) right into the mortgage. Now he can back off the aggressive payments as he's close to having it all paid.
He plans on putting it out on the market for fairly cheap just to collect on a quick 5 figure pocket of money that he paid into over the past few years. So yeah, apparently it worked out well for him. Took the longest time for approval though.
Also know a med student who couldn't pull it off. Agencies he worked with would not even consider his in-school tax exempt income as "steady" due to the longevity of the mortgage commitment. Up-keep would've been difficult as well considering the condition the house was in.
In the end, if you plan on sticking to the minimum monthly payment + prepared for the PMI and property taxes associated with it then I'd give it a hard no. Then again, I'm only an observer, not an experienced "doer"
He plans on putting it out on the market for fairly cheap just to collect on a quick 5 figure pocket of money that he paid into over the past few years. So yeah, apparently it worked out well for him. Took the longest time for approval though.
Also know a med student who couldn't pull it off. Agencies he worked with would not even consider his in-school tax exempt income as "steady" due to the longevity of the mortgage commitment. Up-keep would've been difficult as well considering the condition the house was in.
In the end, if you plan on sticking to the minimum monthly payment + prepared for the PMI and property taxes associated with it then I'd give it a hard no. Then again, I'm only an observer, not an experienced "doer"
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Wouldn't PMI be forgiven with VA loans? You have a point about monthly payments and taxes. With taxes and HOA fees, I might be saving 10-20k in 4 years. Given that the housing market is blowing up right now, it might not be worthwhile to buy a house to sell it in the future.
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I didn't realize you were referring to a VA Home Loan (surprisingly not many use it but this is a veteran forum so makes more sense). Of which case you're correct: PMI would be waived and you wouldn't need a down payment. Depending on your rating and the state, you could also get property taxes waived as well.
To each their own, I personally would stick with an apartment. If I was single with no kids, I'd definitely stick with an apartment. To much uncertainty while being a full time student during the waive of the market coupled with pandemic and the year of a major governmental/political switch in presidency.
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I bought one in residency with a VHA loan. I paid nothing down and lowered my monthly payment from my rental house by about a $100 (even more after I refinanced last year). The biggest consideration for a house even if you put nothing down is you are responsible for repairs and maintenance unlike an apartment. You need to budget those in. I'm happy I finally was able to purchase a house, but I bought it fully intending to stay in the area for a while. For medical school if there are not many residencies close by that is not always feasible.
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