I'm around 6 months into my first attending job as a PCP (graduated in June, currently 30 y.o.). I've been thinking about buying a home. I miss having a yard, I think it will allow me to fill my free time. I know its a dumb reason. Here are some details:
Current Salary: 250k (monthly take home is ~10k
Current rent: 1,500 (split with my partner, living in the same apartment last 4 years, staying at this job another 5 years)
Credit score: 750+
HYSA: 20k
TSP: maxing out
Roth IRA: 20k, plan to max out 2025, then backdoor 2026
CC Debt: 4k (will pay off next month), no car loans, no other debt
Student loans: 275k (in SAVE limbo currently but also on EDRP planing to pay ~3k/month to meet the EDRP max of 40k/yr first pay out will be next year)
Looking to buy this home by myself, so not sure if that will make qualifying for it harder.
I also dont qualify for a FHA as my parents added me to their mortgage when I was still in medical school. (Learning that this was not a good move...)
That home currently has ~100k @3.5% on it until like 2050, I am not contributing to the mortgage or claiming it on my taxes.
Doing research into physican home loans right now.
Should I wait until the interest rates are better? Should I wait until I have saved more for a down payment? (Ie use the EDRP pay out as a down payment?) Should I wait until I pay off my student loans? Should I wait until I have a better reason to buy a house (ie children?)
Looking in the northeast.
TIA!
tldr: no, go rent a house or whatever you need first.
you dont have any money.....so no, not yet.
you can buy anything you want, just not everything.....
- that CC needs to be gone today.
- save 20% for retirement. thats 50K. 24.5 TSP, 7.5 rIRA, another 18 needs to go to somewhere.
- then the rest split between efund, savings, downpayment, loans, etc
- likely no physician loan as it has to be your primary. you need to get off whatever mess your parents caused.
- "partner for 4 years" "buy house by myself"? i mean, get married or move on already.....
Maybe a bit harsh for someone that is 6 months post residency, but this poster isnt wrong
The below is direct - but harsh - advice.
In all honesty - the fact that your student loan balance is higher than your current salary would make me uneasy to buy a house.
Also…. You should really get off your parents’ mortgage…… they can refinance without you. Why would you sign to be on a mortgage for a house you don’t live in or pay for?
Is the Roth IRA the only retirement you have?
I think there are a lot of financial moves you should make before you entertain buying a house.
And this is brutal honesty - but your financial decisions up until this point demonstrate the need for additional financial literacy.
If you really want a yard, then just rent a house with a yard.
Don’t buy a house right now.
This is the way !
What was the initial reasoning for your parents adding you to their mortgage as a medical student?…
Some parents are taught it's a good way to help their kids build credit. I don't know where from, but there had to have been something in the past 10-15 years cause I know more than a handful of people where that happened to them.
Gone are the days of just adding your kid as an authorized user on a credit card lol.
Wow. I’ve never heard of this. Pretty unfortunate advice. Hopefully OP can get off that mortgage.
You are not painting the picture of somebody who is in a good spot to buy, or somebody who has a need to buy, so why would you buy? If a sick appearing patient presented with all the symptoms of say tick born illness, would you just give them a lab req for testing and send them home? Address the student loans, getting your name off that mortgage, and building an Emergency Fund before looking to create more debt. With a house and a 275k student loan you will have what equates to 2 mortgages. Why would you do that for a yard? Silly thinking for a smart person. Also, why are you only taking home 10k/month? Is that after you pay loans and do retirement contributions?
Single, no kids, new job. Keep renting and enjoy your freedom. Get a hobby to fill your free time.
Why in the world is your monthly take home only 10k? Even if you maxed retirement and had expensive health insurance premiums it should be a good bit higher. Are you in CA?
I read the OPs breakdown and thought "hey that sounds like my california"
The finances look a lot like mine except I am not at a EDRP job and stuck on the PSLF pipeline. I think you could buy a house and I dont think its the worst idea, but you need to limit costs if you do.
I dont see why you wouldn't qualify for another physician loan, this house would be your primary home so your good there. I know physicians who have had two mortgages cause they moved and rented prior home from residency. They were able to get another physician loan without putting crazy amounts down.
That said I think if you buy you take the EDRP and use it as a down payment. I think your price range should be around 500-600k to keep it affordable. Your budget sounds like it works better than mine and you dont have kids so you may be able to stretch further, but honestly 10k take home is such weak sauce with a family when your paying huge debt that I think you need to leave some room if kids are in the plan at all.
Overall, if the house is modest and relatively affordable I think its okay. If it's more of an 'attending style' house thats over 600k I think its a bad idea.
A lot of people think you cant rent a house. They think rentals are only available as apartments
Do not think about buying a house now. Biggest mistake I see new docs make. Your student loan debt is way to high. Get rid of CC. Build, build, build.
Depends on the home cost
Invest in another career. Medicine ain't it. Use your MD to leverage something else.