FHA vs Physician vs Conventional Mortage Loan for resident with no debt

[Frogger27]

Here is my situation:

M4 currently applying for orthopaedic surgery residency
Debt: Zero
Finances: ~50k in the bank
Significant other: ~salary about 60k
Children: None, don't see these on the horizon for atleast 4-5 years
Credit Score: High

Most of my interviews are in Midwest cities where I would like to buy a house for residency since I will be there for minimum 5 years (also ranking some 6 year tracks highly). Think cities of Columbus, Cincinnati, Pittsburgh, Cleveland, Indianapolis, etc.

I am starting to look at the housing market in these areas just to get a sense of what I can hopefully buy/where I would like to live. Most of the houses are in the ~350k range. I was wondering if anyone had advice on the type of mortage loan that would be best for me. From my understanding, with a conventional loan (eg, 20%) I would not be able to purchase a home in this range. Would a FHA or Physician loan be the way to go? I am trying to read up on the different types of loan options but have to admit I am pretty naive.

Thanks

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[deleted126335]

Here is my situation:

M4 currently applying for orthopaedic surgery residency
Debt: Zero
Finances: ~50k in the bank
Significant other: ~salary about 60k
Children: None, don't see these on the horizon for atleast 4-5 years
Credit Score: High

Most of my interviews are in Midwest cities where I would like to buy a house for residency since I will be there for minimum 5 years (also ranking some 6 year tracks highly). Think cities of Columbus, Cincinnati, Pittsburgh, Cleveland, Indianapolis, etc.

I am starting to look at the housing market in these areas just to get a sense of what I can hopefully buy/where I would like to live. Most of the houses are in the ~350k range. I was wondering if anyone had advice on the type of mortage loan that would be best for me. From my understanding, with a conventional loan (eg, 20%) I would not be able to purchase a home in this range. Would a FHA or Physician loan be the way to go? I am trying to read up on the different types of loan options but have to admit I am pretty naive.

Thanks

Rent. Your time is a premium. cutting the grass, dealing with repair issues, contractors, etc. is a major pain in the neck that you won't want to deal with. Possible exception if you S.O. is willing to own all of this. If you really want to buy, consider a condo not a house.

 

[abolt18]

Here is my situation:

M4 currently applying for orthopaedic surgery residency
Debt: Zero
Finances: ~50k in the bank
Significant other: ~salary about 60k
Children: None, don't see these on the horizon for atleast 4-5 years
Credit Score: High

Most of my interviews are in Midwest cities where I would like to buy a house for residency since I will be there for minimum 5 years (also ranking some 6 year tracks highly). Think cities of Columbus, Cincinnati, Pittsburgh, Cleveland, Indianapolis, etc.

I am starting to look at the housing market in these areas just to get a sense of what I can hopefully buy/where I would like to live. Most of the houses are in the ~350k range. I was wondering if anyone had advice on the type of mortage loan that would be best for me. From my understanding, with a conventional loan (eg, 20%) I would not be able to purchase a home in this range. Would a FHA or Physician loan be the way to go? I am trying to read up on the different types of loan options but have to admit I am pretty naive.

Thanks

$350K buys you a lot of house in most of those cities. Not having kids either, man I would expand your search to a little farther away from the hospital because you should be finding good size homes for <$300K.

And the above poster isn't unreasonable. I can't count how many evenings I've spent doing yardwork, fixing crap in my house, doing projects, etc. And having to do that stuff after a 12+hr day can suuuuuck.

Buying a bigger place was almost a necessity for me given that I have a wife and numerous children, but having a small place, a condo, or apartment, would be an amazing convenience in residency. (Not saying buying is wrong, but just consider what you're signing up for). There's obviously value to not having to share walls with people.

I got a physician loan with nothing down on it almost 4 years ago for $200K. 4bed 2.5 bath. Worth about $260 now. I did a 7/1 ARM with an interest rate of 3.375%. I knew I wouldn't be sticking around for long after residency/fellowship so the ARM was an easy choice for me. No real downside to getting a physician loan IMO if you know you'll be there 5+ years. I'd suggest you get quotes from many lenders comparing rates on physician loans vs a standard loan (assuming you can put 20% down) and go with the best deal!

Also don't worry about getting quotes from lenders until you match. Not worth it IMO. It helps to be able to tell them exactly where you're going and know the price range of homes in that area.

 

[CocoMelon0531]

I had a wife and children when I entered residency, so I bought a home. Annual increase of home has been 6-8%, so pretty much minimal rent free so far. But, if it's only you and your spouse, I would highly consider renting as well.

I think you can get a physician loan bet 3.1-3.3% 30 yr fixed in the current environment.

 

[Splenda88]

$350K buys you a lot of house in most of those cities. Not having kids either, man I would expand your search to a little farther away from the hospital because you should be finding good size homes for <$300K.

Buying a bigger place was almost a necessity for me given that I have a wife and numerous children, but having a small place, a condo, or apartment, would be an amazing convenience in residency. (Not saying buying is wrong, but just consider what you're signing up for). There's obviously value to not having to share walls with people.

I got a physician loan with nothing down on it almost 4 years ago for $200K. 4bed 2.5 bath. Worth about $260 now. I did a 7/1 ARM with an interest rate of 3.375%. I knew I wouldn't be sticking around for long after residency/fellowship so the ARM was an easy choice for me. No real downside to getting a physician loan IMO if you know you'll be there 5+ years. I'd suggest you get quotes from many lenders comparing rates on physician loans vs a standard loan (assuming you can put 20% down) and go with the best deal!

Also don't worry about getting quotes from lenders until you match. Not worth it IMO. It helps to be able to tell them exactly where you're going and know the price range of homes in that area.

It's a big adjustment, especially if you have kids...

OP should buy since he/she gonna be there for 5+ years. Would advise to buy something relatively new so he won't have to deal with major repair...