MD & DO co'21 Residency Panic thread

Started by kraskadva
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iamarosepetal said:
I totes agree lol! I love my top three, would be happy as well with my #4 and 5 🙁 just worried about falling below three. having match nightmares too like I had a dream my screen cracked into a million pieces and i couldnt' read the email.
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digital art GIF by Robert Ek
 
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efle said:
I'm pretty sure the 4-5 year break even point only applies for the 30 year mortgage? If you take something more aggressive like 15 year, you should definitely be net positive on the equity sans fees vs rent dilemma. That's what me and my SO would do if we match an affordable city.
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This. If you do an aggressive 15 year, then you could be good even after 2 years.
 
SurgDoc95 said:
What do y’all know about physician loans and ability to buy a house before residency? Really not interested in apartment living anymore, but without an income I’d imagine buying a house would be a bit difficult.
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Totally doable! I made An offer on a house on match day last year!!!
Getting the loan was actually pretty easy and I paid 0 down.
 
Chibucks15 said:
I have a wife with a normal 50ish K job and we’re looking like 275 max. Trying like 225
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Well damn. We're going to have a one-income household (me) once residency starts so I'm trying to calibrate. That being said, with military stipend I will be getting I will be making ~90 a year. I have no real way of calibrating for what is normal for house pricing vs income.

I'm still a 3rd year though so I'm just looking for others thoughts/experiences at this point.
 
Steve_Zissou said:
Out of curiosity, what price range are you guys looking at for homes?
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180-220 (max). In all the locations of my top 5 that puts us at about 3 bed/2 bath for around 1000/month. Which is significantly below what it would be to rent a house in these locations.

With kids and stuff it makes a lot more sense for me to buy than rent. And I feel like I’ve learned a LOT from buying a house from med school and what mistakes to avoid. Even with my wife and I bumbling through it we will still likely walk away 25k ahead.
 
AnatomyGrey12 said:
180-220 (max). In all the locations of my top 5 that puts us at about 3 bed/2 bath for around 1000/month. Which is significantly below what it would be to rent a house in these locations.

With kids and stuff it makes a lot more sense for me to buy than rent. And I feel like I’ve learned a LOT from buying a house from med school and what mistakes to avoid. Even with my wife and I bumbling through it we will still likely walk away 25k ahead.
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Is that 30 or 15 year? Does that include taxes/insurance etc, or is that just mortgage?
 
AnatomyGrey12 said:
180-220 (max). In all the locations of my top 5 that puts us at about 3 bed/2 bath for around 1000/month. Which is significantly below what it would be to rent a house in these locations.

With kids and stuff it makes a lot more sense for me to buy than rent. And I feel like I’ve learned a LOT from buying a house from med school and what mistakes to avoid. Even with my wife and I bumbling through it we will still likely walk away 25k ahead.
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I don't think any of the programs that I am interested in are that cheap. Hmmm....
 
AnatomyGrey12 said:
180-220 (max). In all the locations of my top 5 that puts us at about 3 bed/2 bath for around 1000/month. Which is significantly below what it would be to rent a house in these locations.

With kids and stuff it makes a lot more sense for me to buy than rent. And I feel like I’ve learned a LOT from buying a house from med school and what mistakes to avoid. Even with my wife and I bumbling through it we will still likely walk away 25k ahead.
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What are some mistakes off the top of your head? Buying isn't out of the table for me, but I'm just now sure how much I need for fees.
 
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popopopop said:
Same with me unless I want a decent commute : /. Looking at $200-250k though If I were to buy a starter home.
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Yeah I'm looking at a few places and I would likely need to break into the high 200s, low 300s for a home. Definitely looking to buy though since we have a dog and want to start a family.

Edit: also probably limiting myself by wanting to live somewhere close enough to commute by bike.
 
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Ho0v-man said:
Is that 30 or 15 year? Does that include taxes/insurance etc, or is that just mortgage?
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30 year fixed. Includes the taxes/insurance. None of the locations would be considered very "desirable" per SDN standards though haha. Some of the locations would run us more towards 1200/month. The biggest kicker is the property taxes. Some places are hundreds of dollars more than others. All of the locations except one are in decent sized mid-west metros though, so it's not like they are BFE by any stretch of the imagination (except maybe for those who's idea of BFE is somewhere like Kansas City)
popopopop said:
What are some mistakes off the top of your head? Buying isn't out of the table for me, but I'm just now sure how much I need for fees.
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Mainly just not asking about the age of certain things in the house. Had to replace the HVAC and garage systems. So sunk quite a bit of money into the house. It's just pure luck that we are coming out so far ahead just because our local market is so hot.

Closing costs and other fees can add up, so you definitely will want a few thousand set aside for that stuff at least.
 
Steve_Zissou said:
Yeah I'm looking at a few places and I would likely need to break into the high 200s, low 300s for a home. Definitely looking to buy though since we have a dog and want to start a family.
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We own a home currently, have a combined income less than your stated income and bought our home for ~250k in M1. Already pre approved for 350k for physician home loans but will likely purchase in the <350k range. Having a bunch of kids means you can only take so little of a house....

Worth mentioning that both my spouse and my median credit scores are >800 and that is the major factor in determining amount and interest rate. Of course, income matters too but if you've got a low credit score then you'll be lucky to get approved for anything with a decent interest rate.

I wouldn't put so much stock into the "physician loan" either. They are totally dependent on your location as there is no federal program or standard for what they include. Most use it to mean you can put 0 down while avoiding PMI (mortgage insurance, essentially wasted money added monthly until you reach a certain % of principal paid, usually 10%). BUT, I have found that many banks will make this offer only with a super high interest rate. Ultimately, if you have any amount to put as a down payment, you may end up paying less per month even with PMI for a significantly lower interest rate. It really is all about the rate, and at present time they are at historic lows.

There's a lot of nuance to home loans and I would suggest reaching out to mortgage brokers in your top few areas of matching right now to get pre approved and talk specifics. Many brokers work across several states so you may only need one approval letter. Oh and you MUST be pre approved to make an offer on the great majority of homes for sale. So if you plan to start making offers March 19, you def want to be pre approved before then.
 
Jack Donaghy said:
We own a home currently, have a combined income less than your stated income and bought our home for ~250k in M1. Already pre approved for 350k for physician home loans but will likely purchase in the <350k range. Having a bunch of kids means you can only take so little of a house....

Worth mentioning that both my spouse and my median credit scores are >800 and that is the major factor in determining amount and interest rate. Of course, income matters too but if you've got a low credit score then you'll be lucky to get approved for anything with a decent interest rate.

I wouldn't put so much stock into the "physician loan" either. They are totally dependent on your location as there is no federal program or standard for what they include. Most use it to mean you can put 0 down while avoiding PMI (mortgage insurance, essentially wasted money added monthly until you reach a certain % of principal paid, usually 10%). BUT, I have found that many banks will make this offer only with a super high interest rate. Ultimately, if you have any amount to put as a down payment, you may end up paying less per month even with PMI for a significantly lower interest rate. It really is all about the rate, and at present time they are at historic lows.

There's a lot of nuance to home loans and I would suggest reaching out to mortgage brokers in your top few areas of matching right now to get pre approved and talk specifics. Many brokers work across several states so you may only need one approval letter. Oh and you MUST be pre approved to make an offer on the great majority of homes for sale. So if you plan to start making offers March 19, you def want to be pre approved before then.
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This is great advice, but I will be matching March 2022 so I will likely start contacting banks next December/January.
 
AnatomyGrey12 said:
30 year fixed. Includes the taxes/insurance. None of the locations would be considered very "desirable" per SDN standards though haha. Some of the locations would run us more towards 1200/month. The biggest kicker is the property taxes. Some places are hundreds of dollars more than others. All of the locations except one are in decent sized mid-west metros though, so it's not like they are BFE by any stretch of the imagination (except maybe for those who's idea of BFE is somewhere like Kansas City)

Mainly just not asking about the age of certain things in the house. Had to replace the HVAC and garage systems. So sunk quite a bit of money into the house. It's just pure luck that we are coming out so far ahead just because our local market is so hot.

Closing costs and other fees can add up, so you definitely will want a few thousand set aside for that stuff at least.
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Gotcha. I’ll be in one place for 4 years. I just don’t think I can come out ahead in that amount of time on a 30 year. Likely can’t afford a 15.
 
Steve_Zissou said:
This is great advice, but I will be matching March 2022 so I will likely start contacting banks next December/January.
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Oh haha yeah then it's way too early now. I would even say Dec/Jan is too early as well, just make sure to have an approval letter in hand by early March and you'll be good. That usually means reaching out to places and submitting docs in early February.
 
Steve_Zissou said:
Well damn. We're going to have a one-income household (me) once residency starts so I'm trying to calibrate. That being said, with military stipend I will be getting I will be making ~90 a year. I have no real way of calibrating for what is normal for house pricing vs income.

I'm still a 3rd year though so I'm just looking for others thoughts/experiences at this point.
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So for me, I have a mortgage guy in the family and he said we could swing it. We’re definitely going cheap as possible, and we’re gonna keep it and rent it to residents every year or 2/3 that come in. Perfect tenets, enough to pay mortgages, and it’s a win win.

perks of the Midwest guys and gals, you can get a 4 bed 2 bath for 250 easy
 
On this subject... if I match to my #1 my stepmom owns a 1-bedroom apartment in that city that she used to live in but is now a source of rental income for her. She has offered it to us (unclear at this point if going through the agency she normally uses, or at some sort of family discount?). Our initial plan was to buy a home for residency (like 2-3 bedroom with the plan to have kids ASAP), but it is not a cheap city and it might take time to find something good that's somewhat affordable. My SO is very nervous about accepting the apartment offer (not wanting to feel like we're taking advantage, what if it's in terrible condition, etc.) and I'm not sure either, but think it might be nice to have somewhere to land while we sort out long-term plans? Does this sound like a no go or something to consider for others? Also, moot point if I don't match my #1 (but my #2 is in a SUPER affordable city).
 
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Naruhodo said:
On this subject... if I match to my #1 my stepmom owns a 1-bedroom apartment in that city that she used to live in but is now a source of rental income for her. She has offered it to us (unclear at this point if going through the agency she normally uses, or at some sort of family discount?). Our initial plan was to buy a home for residency (like 2-3 bedroom with the plan to have kids ASAP), but it is not a cheap city and it might take time to find something good that's somewhat affordable. My SO is very nervous about accepting the apartment offer (not wanting to feel like we're taking advantage, what if it's in terrible condition, etc.) and I'm not sure either, but think it might be nice to have somewhere to land while we sort out long-term plans? Does this sound like a no go or something to consider for others? Also, moot point if I don't match my #1 (but my #2 is in a SUPER affordable city).
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I think it could be okay. She's your stepmom SHE HAS TO LOVE YOU! jokes aside though if she doesnt seem like the kind of person to hold it over your head might be a place to sort things out.
 
Naruhodo said:
On this subject... if I match to my #1 my stepmom owns a 1-bedroom apartment in that city that she used to live in but is now a source of rental income for her. She has offered it to us (unclear at this point if going through the agency she normally uses, or at some sort of family discount?). Our initial plan was to buy a home for residency (like 2-3 bedroom with the plan to have kids ASAP), but it is not a cheap city and it might take time to find something good that's somewhat affordable. My SO is very nervous about accepting the apartment offer (not wanting to feel like we're taking advantage, what if it's in terrible condition, etc.) and I'm not sure either, but think it might be nice to have somewhere to land while we sort out long-term plans? Does this sound like a no go or something to consider for others? Also, moot point if I don't match my #1 (but my #2 is in a SUPER affordable city).
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I think as long as everyone is on the same page that it's temporary and that she would do like a month-month lease for you that would potentially work out very well. It's a nice thing to keep in your back pocket if you aren't able to find something right away. I also wouldn't count on it 100% though and keep an eye on how much heads up you would have to give her, particularly if there are people occupying it currently.
 
Naruhodo said:
On this subject... if I match to my #1 my stepmom owns a 1-bedroom apartment in that city that she used to live in but is now a source of rental income for her. She has offered it to us (unclear at this point if going through the agency she normally uses, or at some sort of family discount?). Our initial plan was to buy a home for residency (like 2-3 bedroom with the plan to have kids ASAP), but it is not a cheap city and it might take time to find something good that's somewhat affordable. My SO is very nervous about accepting the apartment offer (not wanting to feel like we're taking advantage, what if it's in terrible condition, etc.) and I'm not sure either, but think it might be nice to have somewhere to land while we sort out long-term plans? Does this sound like a no go or something to consider for others? Also, moot point if I don't match my #1 (but my #2 is in a SUPER affordable city).
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I’m with your wife on this one.
 
Oedipa Maas said:
I also wouldn't count on it 100% though and keep an eye on how much heads up you would have to give her, particularly if there are people occupying it currently.
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There definitely are current tenants, though she says she's never interacted with them personally because of the rental agency and has no qualms about asking them to move. I think as soon as we have the results of the match we check the address and what the commute to the hospital would be like (my dad said something about it not being close to a metro stop), the price we'd pay, see at least some pictures of the place, etc. Maybe we're lucky enough to find a place that meets our criteria that we could buy instead and then we can say thanks for the kind offer but not disturb the current tenants or get into murky familial obligations.
sunshinefl said:
I’m with your wife on this one.
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Yeah, I think definitely tread carefully 😆
 
Is there any downside to doing a 7/1 ARM if you basically plan to sell after 5-6 years?? My thought is that it's only a downside if the market sucks during that time which you cant predict
 
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Naruhodo said:
There definitely are current tenants, though she says she's never interacted with them personally because of the rental agency and has no qualms about asking them to move. I think as soon as we have the results of the match we check the address and what the commute to the hospital would be like (my dad said something about it not being close to a metro stop), the price we'd pay, see at least some pictures of the place, etc. Maybe we're lucky enough to find a place that meets our criteria that we could buy instead and then we can say thanks for the kind offer but not disturb the current tenants or get into murky familial obligations.

Yeah, I think definitely tread carefully 😆
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Ugh the familial obligations is probably the biggest 🤨 hate feeling like something is held over my head
That being said hope I get your number 1
 
Y’all got me looking at houses now. If I match at my #1 I fully plan on convincing my girlfriend that we should buy. Looking at the houses down here compared to back home, holy ****! Found one that’s in the $250k range that would probably go for close to a million back home. Found my #1 house early too I guess, cause if we bought and she gets into critical care here, we’d be set, and if we ended up moving away I’d just rent it to med students or residents for 2x the mortgage.
 
Frogger27 said:
Is there any downside to doing a 7/1 ARM if you basically plan to sell after 5-6 years?? My thought is that it's only a downside if the market sucks during that time which you cant predict
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I was looking into this too. Seems like a good move you're going to sell in a few years.
 
How is Chicagoland when it comes to COL/housing prices? Its technically Midwest but is it closer to Des Moines or DC? I was never sure if it's an exception to the great income/COL the rest of the Midwest offers.
 
The_RZ_Method said:
How is Chicagoland when it comes to COL/housing prices? Its technically Midwest but is it closer to Des Moines or DC? I was never sure if it's an exception to the great income/COL the rest of the Midwest offers.
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Really depends on where in Chicago. There are areas that are similar to higher end Midwestern rents, and places where the costs are similar to large coastal cities. On the whole, I think probably closer to DC than rest of Midwest though.
 
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