The calculator below will allow you to compare buying versus renting a home while in residency.

Purchase Price

Total Household Income

Down Payment

Term Length (in Years)

Interest Rate

%

When Will You Start Payments?

Monthly Rent You Would Pay if You Didn't Buy Enter the estimated amount you would pay per month to rent a house or apartment if you decided to do so instead of purchasing

Remaining Length of Training (in years)

Estimated Yearly Home Price Increase (in %)

%

Property Tax (Annual) *NOTE: Usually 0.5% to 3% of Market Value

Home Insurance (Annual) *NOTE: Typical numbers range from $1,000 to $3,000

Home Maintenance (Annual) *NOTE: Budget 1% to 3% of home purchase price for required maintenance

HOA (Annual) *NOTE: List $0 if Not Applicable

Inflation Rate Assumption

%

Investment Return Assumption

%

Result Renting is better
Buying a home could save you this much money during the remaining years of your training
*NOTE: to see the effect of buying a home and then remaining in the area after training, change the "remaining length in training" input above to the total number of years you expect to live in your home

Mortgage Payment & Rent Comparison

Your Monthly Mortgage Payment
Mortgage Payment + Monthly Taxes + Insurance + Maintenance
Monthly Rental Payment if You Didn't Buy
Positive (or Negative) Monthly Cash Flow Advantage from Renting

Buying the Home vs. Investing while Renting

Home value at end of training
Costs you paid when buying your home (Estimated)
Costs you'll pay when selling your home (Estimated)
Proceeds from home sale after expenses
Mortgage Balance owed at end of training
Net cash after selling home in 4 years
Portfolio size after 4 years if you invested the cost difference between owning and renting as well as your down payment at percent


Get Quotes for Your Doctor Mortgage

What mortgage product do you need?

Step 1: Job
Step 2: Home
Step 3: Your Info

Your Occupation

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Home Price Range

Preferred Down Payment

Stage You're At in the Home Buying Process

When Do You Want a Mortgage Approval?

How Many Banks Would You Like Quotes From?

Any Bankruptcies or Short Sales?

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Full Name

Email

Phone Number

State Where You Plan to Purchase

Metro Area Where You Plan to Purchase

Citizenship Status

Communication Preference

Would You Like to Add Any Additional Details?

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Buying a home remains the American dream for many young physicians. But that doesn’t necessarily mean medical residents should rush into buying a home, nor does it mean you should automatically postpone this major milestone.

What to consider when deciding between renting vs. buying as a medical resident

Medical residents should balance short-term and long-term financial goals, as well as more intangible factors like the sense of stability that comes with buying versus having the flexibility of renting.

Consider the following:

  • Location. What’s the local housing market like? There’s a big difference between buying in California versus buying in Texas. If home prices are insanely high in your area, renting during residency is going to make more financial sense.
  • Duration. How long do you plan to own the home? It’s hard to break even financially if you’re only going to be in the home for a few years due to the transaction costs of buying and selling. However, if you plan to stay in the area for more than three to five years, you’ll increase your odds of coming out ahead.
  • Other housing expenses. Can you afford all of the hidden costs of homeownership? Owning a home is expensive, and you might not understand the full extent of those costs until you’re locked in. The cost of property taxes, home insurance, HOA fees, maintenance and repairs really start to add up, not to mention the cost of lawn care, furnishings and other surprise expenses.
  • Mental load. Is owning a home worth the time and energy when you’re already stressed out during residency? Owning a home is an emotional rollercoaster. Let’s say your pipes burst during a freeze or the air conditioner goes out during a heat wave. Unlike with renting, it’s your responsibility to deal with these financial and mental stressors. And they always happen at the most inconvenient times as a homeowner.

Deciding to rent versus buy as a medical resident is going to vary by situation. But if homeownership makes sense for you, there are programs available to make homebuying more affordable for residents, fellows and interns.

What options do medical residents have when buying a home?

Buying a home during residency can prove challenging considering you 1) have limited income 2) don’t have enough savings for a down payment and 3) have hundreds of thousands of dollars of student debt. Fortunately, medical residents can take advantage of physician mortgage loan programs that address these common barriers.

Residency mortgage loans offer exclusive benefits such as:

  • No down payment. Many physician loan programs offer down payments ranging from 0% to 10%, depending on the size of the home loan.
  • No private mortgage insurance (PMI). This can save you thousands of dollars annually if you don't plan to provide a down payment.
  • Ability to buy a home before starting residency. Most physician mortgage programs will allow you to close on a home up to 90 days before starting your residency by using your employment contract as proof of income.
  • Higher loan amounts. You can access loan amounts that exceed the conventional loan limit without the interest rate spike that generally comes with a jumbo loan.

You also won’t have to worry about your medical school debt holding you back as these programs are designed specifically for your education requirements and career trajectory.

Use our calculator above to see how a physician home loan could benefit you as a medical resident.