How do people manage to buy a house...

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Most cant and dont do this.. most buy a house during residency, there are special programs in place for residents. I dont know of any for med students.

Now if someone can help you out with a down payment then you can buy a house, if not then good luck...
 
See, I just knew that all of those people going to San Antonio for med school and buying houses was suspect. I guess I should have worked more during my undergrad years...I wonder how much I would have needed for a down payment? Then the monthly payment would be roughly the same as renting, huh?
 
I dont know the housing market is SA. Gen u need min of 5% down or GREAT credit to get 0% down.. Then what people do is take an interest only loan to keep payments down.

Bottom line with no income you might be SOL, now your parents might be able to cosign..

Basically for every 100K in mortgage you will pay $600 per month.. Dont forget about property taxes and when things break no one will fix them for you..Hope this helps..
 
Actually you generally can't get a mortgage if you don't have a job. So the question isn't really how much you'd need for a down payment. I've heard of people getting condos by having parents co-sign with them on a mortgage, but I don't know much about that. Once you're in residency you have an actual salary in a field with good job security, so banks are willing to offer pretty good mortgages.
 
Tigress, in residency they will give you a mortgage but a "good mortgage" nah dont believe the hype.. It will be much better when you are an attending and have good credit!
 
Oh yeah, the thing about when things break nobody fixes them for you. That's been a factor in our decision not to buy yet, but then again, our hot water hasn't been working properly for over a month and nobody's fixed it. And our basement floor was messed up when it got replaced 9 months ago and nobody's fixed it. So yeah, an apartment with a bad landlord is actually worse, because there's nothing you can do about it. I wish I could just fix things myself, at this point! 😛
 
EctopicFetus said:
Tigress, in residency they will give you a mortgage but a "good mortgage" nah dont believe the hype.. It will be much better when you are an attending and have good credit!
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How do you get good credit if you refuse to use credit cards? That's my problem. I have an absence of credit.

I don't know much about mortgages, to be honest. I've seen some advertised for residents, but I'm no judge of how good they are 😛
 
Sucks tigress.. perhaps you can withhold rent. This tactic depends on your contract. I would send him a formal letter.. Sometimes you have to rule with an iron fist!
 
That's true, re: property taxes, maintenance costs, etc. I guess a townhouse or condo or something like that would keep costs down.

I just get that voice in the back of my head saying "you're throwing money away by renting!" But then the headache of actual homeownership isn't a good idea when you're a med student.

Thanks for the input, tigress and EP!
 
Yup, we sent a formal letter. And I told them that if the water isn't fixed in a month we're looking for a new place. We were planning to move when our lease is up in July, anyway 🙂

The better question is why I'm still awake. Or better yet, if I'm still awake, what I'm doing on sdn :laugh:
 
go to bed.. im happy being awake! watching cold cases on A&E!! chillin with my wife starting now!!!!
 
eh, my husband has a pharmacology test on Monday. So I'm just amusing myself while he studies 😛

good night 🙂
 
Significant other with an income? Savings from a previous job? Rich parents? Winning the lottery? Who knows?

In some cities, managing a mortgage during RESIDENCY is perfectly normal, since you're making a little money.
 
tigress said:
How do you get good credit if you refuse to use credit cards? That's my problem. I have an absence of credit.
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hey tigress - even if you don't want to use credit cards, it might be a good idea to get a couple with no annual fee. you will build credit just by having the cards, even if you never use them. you could even cut them up as soon as you get them to avoid temptation.
 
Syranope2 said:
hey tigress - even if you don't want to use credit cards, it might be a good idea to get a couple with no annual fee. you will build credit just by having the cards, even if you never use them. you could even cut them up as soon as you get them to avoid temptation.
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So if I'll be an FMG (still in the US now), I should open 5 credit cards with no annual fee so I have good credit once I come back? 😕
 
Run a credit check to see how good or bad your credit is. Many websites offer this service "free", but it better to go to one of the actual credit score companies (e.g. Experian, Equifax) and pay (about $15) for a one shot look at it. That way you don't get stuck in some scam. If you don't have a credit card, get one... you don't have to use it. Just having 1 will improve your score. Having too many will lower it.

Also getting an interest only mortgage and then refinancing later doesn't make a lot of sense. Essentially you're paying rent to a bank instead of a landlord, plus you will lose the benefits of being a lessee (repair work, etc.). You won't have any equity in the house (except what you paid in a down payment), so you won't get much (if any) money for selling the house later. Unless you really want THAT house don't do it. If you have the ability to obtain and pay a mortgage run a rent versus own calculation (you can find them on the net). Also make sure you can pay every month, the fees associated with a late payment could make the difference of being comfortable and living in a cardboard box.

I'm looking into buying a home when I start medical school next fall, but since I don't have a large income, it may not be possible. I am looking into how I might be able to pay. My school is in an area abundant with cheap property.

Also, I may be incorrect about any of the things I've said here, so correction are welcome 😉.
 
I've done a credit check, and for my husband as well. My husband has good credit because he repayed all his college loans way before they were due, but that's all that shows. Nothing shows up for me at all.

I guess I could get a credit card and not use it. I had one during college, in an attempt to build credit, but I guess because I didn't use it the company cancelled it or something. I used it once and paid the bill immediately and then never used it again. But it doesn't show up on my credit report, I'm not sure why.

I think if we could find a no-fee credit card with some sort of reward system, particularly frequent flier miles, we would just put all of our purchases on there (we usually use the debit card) and pay the bill every month. My parents do this, and they were able to visit us in December with their miles. But it's impossible to find that kind of card with no fee, and we spend so little that it's not worth it at this point.

I guess I'm just anti-credit card. I think they're dangerous. I don't think we would go into debt, because we're incredibly good about money, but it's more of an idealistic aversion.
 
It doesn't matter if you don't have income to get a mortage, as long as your credit is good you become what's called a "no doc," or no documents. The best way to have good credit is to open a couple credit accounts, use them, keep the balances low, and always pay them off on time. As a "no doc," you will have a slightly higher interest rate and the lender will require like 5% down on the mortage. The biggest thing standing in the way of a med student getting a house would be coming up with the down payment.

As for not getting credit cards because they are "dangerous," that is very bad from a financial and credit standpoint. There will come many times in every person's life when they will need credit, be it a mortgage, investment loans, credit cards, whatever. The credit compaines determine your credit score partially based on the different lines of credit you have. Your school loans, while helpful in building credit history, are viewed differently than a credit card, when calculating your score. Being in your mid-late 20s and not having a credit history pertaining to credit cards is viewed negatively by the credit companies. It becomes a vicious cycle because the less credit history you have, the harder it is to get.

If you are that affraid of your own spending habits, then get one credit card and only use it for something like groceries. Use it like a charge card and pay off the bill at the with each statement.
 
ddmo said:
If you are that affraid of your own spending habits, then get one credit card and only use it for something like groceries. Use it like a charge card and pay off the bill at the with each statement.
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Agreed. Most people buy a house using a mortgage. A low credit score could cost you thousands over the life of that loan. You can get an idea by looking at this calculator. Its one of those things where you have to play the game to get ahead. Creditors are fun!!! 🙂 Thanks for the "no doc" information, I'll look into that more.
 
That's a cool calculator, thanks for the link.
 
I bought a condo with my fiance before starting med school. We are both students and have no income. We did a true "no doc" loan that was based solely off of our credit scores. It was actually hard to find this type of loan because most "no doc" loans still want to verify that you are atleast employed. Our interest rate was slightly higher, but not by much and is probably really good compared to the rates now. We put a lot down for the down payment (at least 20%) that we had due to stocks and savings and we ended up getting a 30 year fixed mortgage. Because it was a "no doc" loan, we were not able to get the interest only loans and could only get a fixed one. I would strongly advise AGAINST the interest only loans because the APR is variable and is destined to go up. Also, since it makes the payments so low, many people buy beyond what they can actually afford. Don't do this!

As for credit, it is imperative that as a twenty-something, you have a credit history!!! I can not stress this enough!!! SO MUCH is based on this, including getting school loans for med school! I have had excellent credit since high school and would not have been able to buy a condo without it. IT IS NOT HARD TO FIND A CREDIT CARD WITHOUT AN ANNUAL FEE!!! I have had many credit cards and have never had to pay an annual fee. You should never do this! Check out the Citibank dividends credit card. It gives you 1% rebate on all purchases, and 5% rebate on groceries, gas, and drug store purchases. It is the best card out there. THe frequent flyer cards are okay, but you'll end up doing better with the dividend card and can get hard cash back instead of just miles.

In terms of affording a mortgage during school, it really depends on where you live. I pay about the same as most of my friends do in rent, but my place is MUCH bigger. We are also in an area that is appreciating very fast and so our place has already appreciated about $20k in 1.5 years! Not too bad. It does suck to have to pay for things breaking etc. But if you budget well, and make a wise purchase in your home, it is not too bad. I figure it's all worth it in the end and we will definitely make money on this place. One note is that we plan to stay in this area for residency so we will be holding onto our condo for atleast 4-6 yrs. This is another important consideration.

Hope all that helps!
 
It's possible. I purchased a home. It's true that an income is generally required to be granted approval for the loan. I was working for a while before medical school and, while I could not provide proof of continued employment, I was able to defray anxiety on the part of the lender by providing a 15% downpayment. My school is in a very inexpensive area and I'm not paying much more than some of the medical students who are renting, so buying made perfect sense to me. I have a great house in a great neighborhood and I prefer to study there. Indeed, I am blessed. I'd like to stay here for residency, too.
 
For Scottish Chap or mimi1
Are you making payments using the money from your medical school loans? Did you get the mortgage before you got your med school loans or the other way around?

Thanks
 
mimi1 said:
As for credit, it is imperative that as a twenty-something, you have a credit history!!! I can not stress this enough!!! SO MUCH is based on this, including getting school loans for med school! I have had excellent credit since high school and would not have been able to buy a condo without it. IT IS NOT HARD TO FIND A CREDIT CARD WITHOUT AN ANNUAL FEE!!! I have had many credit cards and have never had to pay an annual fee. You should never do this! Check out the Citibank dividends credit card. It gives you 1% rebate on all purchases, and 5% rebate on groceries, gas, and drug store purchases. It is the best card out there. THe frequent flyer cards are okay, but you'll end up doing better with the dividend card and can get hard cash back instead of just miles.

In terms of affording a mortgage during school, it really depends on where you live. I pay about the same as most of my friends do in rent, but my place is MUCH bigger. We are also in an area that is appreciating very fast and so our place has already appreciated about $20k in 1.5 years! Not too bad. It does suck to have to pay for things breaking etc. But if you budget well, and make a wise purchase in your home, it is not too bad. I figure it's all worth it in the end and we will definitely make money on this place. One note is that we plan to stay in this area for residency so we will be holding onto our condo for atleast 4-6 yrs. This is another important consideration.

Hope all that helps!
Click to expand...

Well, I'm aware that it's easy to find a card with no fees, and even with good rates. I'm just ideologically opposed to credit cards. I'm serious. And okay, maybe I'm shooting myself in the foot, but at this stage I'm really not willing to give in and get one. I think they are bad news, plain and simple. Sure, I'd use it responsibly, but I can't bring myself to do it. Also, in my experience a credit card history isn't needed to get loans for med school. My husband has never had a credit card and he hasn't had any trouble getting loans. Poor credit can probably hurt you here, but no credit doesn't in my experience.

Maybe I'm too idealistic, but I don't think I am. Not too long ago there was a push to allow an alternative credit rating, which would be based on bill payment history. I don't know the details of this or whether anything happened with it, but that's what I would like to see happen. It is absolutely ludicrous that there is such a huge problem with credit card debt in this country, but at the same time if you don't have a credit card you can't participate in basic business interactions. If you look at our bill history it's obvious that we pay everything on time always, so we're obviously fiscally responsible.

Okay, enough of my rant. I'm curious -- is your condo in East Falls or elsewhere in Philly? We'd also be looking in Philly, and it looks like you have experience buying here. And thanks, your post did help! (My rant wasn't against you, it was against the system 😛)
 
tigress said:
I think if we could find a no-fee credit card with some sort of reward system, particularly frequent flier miles, we would just put all of our purchases on there (we usually use the debit card) and pay the bill every month.
Click to expand...

My school's credit union has a no-fee credit card that gives me ff miles toward every airline. I earn about a ticket per year just buying overpriced board review books. 😀
 
want2beadoc said:
For Scottish Chap or mimi1
Are you making payments using the money from your medical school loans? Did you get the mortgage before you got your med school loans or the other way around?

Thanks
Click to expand...
Yes. Before medical school.
 
We bought the condo in July before I started first year. So I already had applied for my school loans.

Tigress- I know what you mean about credit card debt and I do think that it is really an evil thing to have. Thank goodness that my mother hammered it into my head (since I was a child) about paying off credit card balances in full and on time. Here are a couple of things to consider though: 1) When we were applying for our mortgage, although my credit was fantastic, my credit history was not very long and this counted against me. Therefore, they looked at my fiance's credit history much more because he is older and has had a credit card longer than I have. So what I'm saying is that, unfortunately, not having a credit history can count against you. For some reason that is what our society chooses to judge people on. And when you are applying for a mortgage, they will look with great detail at every single little thing on your credit report. 2) I view charging things on my rebate credit card as much more beneficial to me. I am actually earning money back when I use the card and therefore am not spending as much. It is better than paying cash for things. But I am diligent about paying it off every month, on time. My rule of thumb: never buy something that you don't have money in the bank to pay for (seems obvious, but is often forgotten).

Our condo is located in Roxborough. We looked a lot in Manayunk, Center City, and East Falls. PM me, tigress, if you want more info etc.
 
UserNameNeeded said:
and go to med school simultaneously? Is it a smart idea?
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We bought a house at the beginning of medical school and now it's completely paid off. My situation is somewhat unique, but if you have the funds/funding, it's certainly possible.
 
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