QuestionsMedical school to residency

Should I rent or buy during residency?

Jay Weinberg, CLU, ChFCPhysician disability insurance specialist · PGY1 Financial Solutions

Short answer

It depends on how long your training is, where you matched, and what buying costs compared with renting there. If you'll be somewhere a long time, a physician mortgage may let you buy with 0% to 5% down and no private mortgage insurance, and some lenders will start the process with just your match letter.

Jay answers it

A short clip from his webinar for residents and fellows, with captions.

Watch the full webinar from 46:18

What to weigh

How many years is your training? A three-year emergency medicine program is different from a seven-year neurosurgery program. Where did you match? San Francisco, New York City or Miami are expensive places to buy. Somewhere like Geisinger in Danville, Pennsylvania, lots of residents buy because it's still affordable. Then compare what it would cost to buy with what it would cost to rent.

Interest rates are higher now, and home prices are higher than they've ever been, so more people are renting right now. But some will still buy, especially if they'll be there for an extended time.

Physician mortgages

You don't necessarily need your MD or DO yet. Some lenders will accept a match letter and let you get the process going. Physician mortgages have competitive interest rates, often a little higher, but not crazy higher. Depending on the lender, you can often get in with 0% or 5% down. There's typically no private mortgage insurance (PMI), and some lenders won't penalize you for student loan debt.

I don't have any financial ties with mortgage brokers. But if you email me where you matched, I'm happy to let you know which banks may offer physician mortgages in that area.

Where Jay covers this

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