Buying a house while in dental school

[Biofilm preventer]

Hey everyone i wanted to know if it was possible to take out a mortgage and get extra money from loans to put as a down payment for a house while in dental school? Would a bank allow a dental student to take out a mortgage? Also are there banks that would just loan 100K to somebody? Thanks for advice and please only serious responses, i am just looking into this to consider this as an option and become knowledgeable in this regard, and am in no way doing this 100% just wanna know if people have done it in the past. Thanks

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[Saddleshoes]

I had a number of classmates did that very thing. However, they were the "older crowd".

Knowing what I know NOW...
...I would have done the same thing.

 

[Biofilm preventer]

I had a number of classmates did that very thing. However, they were the "older crowd".

Knowing what I know NOW...
...I would have done the same thing.

How come with your knowledge now you would?

 

[Gustavo dos Santos]

Its very unlikely that you would qualify for a mortgage while trying to use dental school loans for your down payment and no verifiable income with the only source of funds being student loans.

If you had a job before hand and were living in the area you were going to dental school, got a mortgage before quitting your job and starting dental school then you could use your student loans to pay your mortgage when you transitioned to dental school I think.

A lot of the people who buy who are in the "older crowd" have money for a down payment or a spouse/SO salary as well.

That being said, If someone was willing to do this for you it would likely be a smaller local bank, credit union, etc. Not Wells Fargo or BAML or US Bank or some large bank. You wont know for certain until you call a loan officer and find out.

 

[mrdeez]

Gustavo is right on here. If a bank were to allow you to use student loan debt as a means to qualify for even more debt, without any income or job whatsoever, the country would be in even worse shape than it’s already in lol.

Banks have cracked down on lending since 2008 and even more so during coronavirus. That being said, I don’t know your total financial situation and I’m not a banker. No hurt in trying. Actually doing it is another story though.

 

[Saddleshoes]

How come with your knowledge now you would?

NOW...
...I know the ins and out of house buying.
...I know what my personal abilities really are.
...I know the true value of property.
...I have learned how to handle responsibility.
...I am a lot lot smarter about everything.
...I am an adult.

 

[Ivy.ch]

Hey everyone i wanted to know if it was possible to take out a mortgage and get extra money from loans to put as a down payment for a house while in dental school? Would a bank allow a dental student to take out a mortgage? Also are there banks that would just loan 100K to somebody? Thanks for advice and please only serious responses, i am just looking into this to consider this as an option and become knowledgeable in this regard, and am in no way doing this 100% just wanna know if people have done it in the past. Thanks

Do you really want to own a house in this area? Taxes are insane here, it’s hella crowded, and the only growing neighborhoods have property prices which are soaring. Do you plan to stay in this area for many many years? By the time you got it, you’d only have <3 years of school left.

Don’t underestimate the value of renting. No headaches, no stress, no maintenance, no taxes, no real estate cut when buying or selling, no dependence on market conditions, no unintentional landlording, no shoveling snow, no fixing broken things, etc.

Fidelity has a good calculator on “Buy vs. Rent”. I would definitely recommend it.

 

[ESPN907]

You’ll need a co-signer if you have no income. I wouldn’t put that on anyone, but if you do that then you’d want the full 4 years to recoupe transaction/realtor fees. In a lot of ways it can create more of a headache and hassle than you need. Renting a house can be just as satisfying. Not having to pay for tree services, plumbing and heating issues, etc. I can tell you if we owned the home we rent and had to pay those maintenance charges the land lord takes care of we probably wouldn’t break even. We get the peace of mind and when graduation comes around we just give a move out date rather than dealing with trying to sell a home.

 

[PerioDont]

A few classmates of mine have houses. It is a huge pain. Most of them have to rent out part of their house to be able to pay for all the costs, and then it is a constant revolving door of tenants who may or may not be psycho that could disturb your d school life.

One of my classmates had a custom home made prior to d school. He is a little older, but he feels chained to that area since he put so much $$ into it. He will not move out of the area and is willing to accept any job nearby to the house. I personally prefer having the flexibility to pick up and move early into your career.

The way I have seen this work is buying a duplex and renting out the other half with a spouse who can manage the hassles of having a renter so you don't worry about it. That could make it well worth it, especially if your parents or someone else is willing to cover the down payment. That way the renter will cover the house payment and you can live for less while building equity.

Just like ESPN said as well, you likely will lose money at the end of the day with closing costs etc.

Check out this article from WCI on this. It is for residents who are actually earning an income, but its mostly the same principles:

Buying a House During Residency | White Coat Investor

New residents have a big desire to buy a house. But it's a gamble of your time and money at a period of life when you have little of either.

www.whitecoatinvestor.com

 

[Biofilm preventer]

Is there anyway i can take out another 100-150K in loans from anywhere that i can use? Assuming i already take out the full amount from student loans?

 

[Gustavo dos Santos]

Is there anyway i can take out another 100-150K in loans from anywhere that i can use? Assuming i already take out the full amount from student loans?

Banks dont just give you money. You can't walk in and say "I want one hundred and fifty thousand simoleons, fifteen hundred bennys, or a honey bun and a half - how ever you wanna slice it" and expect them to give it to you. Theyll want to know what the money is for, what source of income you have to make payments, etc. You're going to go through a fairly in-depth application process. You will not find a bank that will give you a personal $150K loan with no source of income. Even if you had income, you're looking at very expensive debt, somewhere in the range of 7-20% APR depending on the amount you borrow, credit score, and how likely you are to pay it back as deemed by some underwriter. They may also want some form of collateral for personal loans, especially that large.

Even if you did qualify, it would be SUPREMELY unwise to take out a loan of that amount for a down payment. Not to mention you become a much Higher risk borrower on your mortgage application with a high interest rate personal loan and are much less likely to qualify for a mortgage. If you are trying to take out $150K "personal loan" to buy an apartment/house, theyre just going to call it a mortgage and subject you to all of the qualifications you'd have for a mortgage.

This isn't a system that is easily gamed, especially post-2008

 

[2TH MVR]

Is there anyway i can take out another 100-150K in loans from anywhere that i can use? Assuming i already take out the full amount from student loans?

I'll have one of my Italian buddies Guido hook you up. I hear the interest rates aren't too bad. Do you have good medical insurance just in case you can't make the payments?

 

[2thDoc11]

Can a student buy/own a house during dental school? yes. Can one do it with 100% borrowed money? probably not. and if one can, probably shouldn't.