Rent vs. Buy Calculator for Residency / Fellowship

The calculator compares buying versus renting a home while in residency or fellowship. If you want a doctor mortgage quote, check out our list of physician mortgage options or fill out the form farther down this page.

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.