•••quote:•••Originally posted by gem777:
•I've found that most mortgage lenders require a minimum of 5% down. Of course, you have to pay monthly mortgage insurance. Additionally, it seems that local banks that do not sell their mortgages on the open market tend to be more accomodating to the new resident with outrageous debt. Many mortgage lenders also require proof that you have been granted a deferment on your student loans.
My question is this: How much mortgage is a good idea, considering your student debt load? Is it a good idea to buy "more of a home" at the expense of paying less on your monthly student debt? For instance, if you can manage to pay $700 a month on your debt if you continue to rent, but you if you buy a home you could only pay $300 on your debt - is that a sign that perhaps you should not be buying the home?
I've been debating this one. My husband and I have found a home that we absolutely love. But if we do not purchase it, we would be able to pay a larger student loan payment. On the other hand, if we buy that home, we will have a great place to live, but take longer to pay back the debt. I really want the debt to disappear, but I also want to live a little.•••••Gem,
Your assesment about downpayments seems correct. I have found several brokers that offer no downpayment, and even one that does it without requiring mortgage insurance. Unfortunately I lost that link. I am starting to pursue this process in earnest and will share any info I learn.
It seems that most want at least 15% down to avoid mortgage insurance however.
Paying off the debt is indeed nice, but having a place to call 'home' is sensational. I have come to terms with my debt and don't want to wait 6 more years before home life begins, so I'm opting for the latter choice. Those are six years I will never ever have again. Money can always be earned at some point, but 6 wholesome years of home life is priceless, at least in my opinion.
Let me know what you decide to do. Maybe we will have a joint housewarming.
P.S. The link to the physician lender at the top of this thread is only applicable to certain states. They do not have a national presence, and certainly not in my neck of the woods.
I have amassed a list of useful sites to help in the process, here they are:
<a href="http://www.doctorsfirst.com/links.html" target="_blank">http://www.doctorsfirst.com/links.html</a>
<a href="http://www.doctorloans.com/asp/index.asp?page=home.asp" target="_blank">http://www.doctorloans.com/asp/index.asp?page=home.asp</a>
<a href="https://siren.safe-order.net/towermortgagecorp/physicianloans/frameset/frames_contact.htm" target="_blank">https://siren.safe-order.net/towermortgagecorp/physicianloans/frameset/frames_contact.htm</a>
<a href="http://www.pmdnet.com/" target="_blank">http://www.pmdnet.com/</a>
<a href="http://www.webcom.com/pgi/homebuy.html" target="_blank">http://www.webcom.com/pgi/homebuy.html</a>
<a href="http://mommd.medcareers.com/resources/onlineresource.asp?Category=Relocating&audience=seeker" target="_blank">http://mommd.medcareers.com/resources/onlineresource.asp?Category=Relocating&audience=seeker</a>
<a href="http://www.residentphysician.com/" target="_blank">http://www.residentphysician.com/</a>
I am going to ask the owners of the DoctorPalm Yahoo group to include these sites, as well as others I find in their directory. Hope this is helpful to someone out there.