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/u/ochemnewbie
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I'm about to graduate medical school and begin residency. My partner is an attorney. We are both generally frugal and will have apprx $125k in savings when we begin looking at houses in the spring. Our current debt is limited to his car payment ($250/month) and my student loans (around $200k, anticipate around $700/month minimum during residency). Our combined gross income will be around $195k. After taxes, we anticipate bringing home about $120k. Both our credit scores are around 800.
We are really hoping to purchase a house once I know where I match, ideally a stand-alone home where we can have a yard and space to have at least 1 kid (looking at 3 br/2 ba). Unfortunately, both the metropolitan areas where I am most likely to match have relatively high housing prices and we're looking at around $500k for this. Neither of us feel comfortable draining our savings to $25k with a 20% down payment.
I've begun contacting lenders to get a physician loan where we could only put 10% down and get a loan with no PMI. Using mortgage calculators, it seems like we *could* afford a $500-550k home but the idea of paying upwards of $4k/month for housing costs still seems like it could end up... tight when our monthly net income is going to be around $10k.
Looking to get some input particularly from individuals outside medicine regarding using a physician loan. Our hesitation to go any smaller than 3bed/2ba or without a yard is that we'd be feeling the itch to move somewhat quickly, particularly if we have a child, and we're hoping to stay in the house we buy for at least 7-10 years. Is it best in this case to wait a year to save for a heftier down payment? Should we utilize a physician loan? Am I just wanting to have my cake and eat it too (aka is it simply unrealistic for us to afford a home like this while I'm in residency, making $70-80k and staring down $200k in student loan debt)?
The only other unique factor that comes into play with our situation is that after 6 years of training I will be working as an attending in a higher-paying specialty, anticipate making around $400k minimum and we both would want to still live pretty simply for a couple years so I can just pound out my medical school debt.
submitted by /u/ochemnewbie
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Budgeting for a Home with Physician Loans
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We are really hoping to purchase a house once I know where I match, ideally a stand-alone home where we can have a yard and space to have at least 1 kid (looking at 3 br/2 ba). Unfortunately, both the metropolitan areas where I am most likely to match have relatively high housing prices and we're looking at around $500k for this. Neither of us feel comfortable draining our savings to $25k with a 20% down payment.
I've begun contacting lenders to get a physician loan where we could only put 10% down and get a loan with no PMI. Using mortgage calculators, it seems like we *could* afford a $500-550k home but the idea of paying upwards of $4k/month for housing costs still seems like it could end up... tight when our monthly net income is going to be around $10k.
Looking to get some input particularly from individuals outside medicine regarding using a physician loan. Our hesitation to go any smaller than 3bed/2ba or without a yard is that we'd be feeling the itch to move somewhat quickly, particularly if we have a child, and we're hoping to stay in the house we buy for at least 7-10 years. Is it best in this case to wait a year to save for a heftier down payment? Should we utilize a physician loan? Am I just wanting to have my cake and eat it too (aka is it simply unrealistic for us to afford a home like this while I'm in residency, making $70-80k and staring down $200k in student loan debt)?
The only other unique factor that comes into play with our situation is that after 6 years of training I will be working as an attending in a higher-paying specialty, anticipate making around $400k minimum and we both would want to still live pretty simply for a couple years so I can just pound out my medical school debt.
submitted by /u/ochemnewbie
[link] [comments]
Budgeting for a Home with Physician Loans
Continue reading...