What I Wish I Knew Before Buying My First Home as a Resident
TL;DR:
It can be a smart move for your future. In this guide, we break down one resident doctor’s real-life homebuying experience, including what worked, what went wrong, and what every med student, resident, or fellow should know before taking the plunge. Learn how physician loans work, the hidden costs to watch for, and how to avoid common financial pitfalls—so you can make a confident, informed decision about homeownership in training.
What I Wish I Knew Before Buying My First Home as a Resident
I bought my first home three months into my internal medicine residency in Pittsburgh. It wasn’t fancy, it wasn’t large, and it definitely wasn’t stress-free—but it was mine. If you’re a resident considering buying a home, especially with a physician mortgage loan, here’s what I wish I knew before signing those closing papers.
1. A Physician Mortgage Loan Made It Possible—But I Didn’t Fully Understand It
My income at the time was around $60,000. My debt? Nearly ten times that. A traditional lender would’ve laughed me out the door. But my physician mortgage lender looked at something else: my signed employment contract and my potential.
Physician loans don’t require private mortgage insurance (PMI) even with little or no down payment. Many also ignore student loans that are deferred or in income-driven repayment. That helped me qualify for a decent starter home near my hospital.
If you’re still learning the ins and outs of physician mortgages, start with Physician Mortgage Loans 101 for a straightforward breakdown of how these programs work.
What I wish I had done? Compared lenders more closely. Some offered better rates or lower fees, but I was so relieved to be approved that I didn’t shop around.
2. Closing Costs Are Real—and Sneaky
When you hear “zero down,” it’s easy to assume there’s no upfront cost. But physician loans still come with closing costs: appraisal fees, title insurance, and escrow deposits, to name a few. Mine added up to nearly $7,000—money I hadn’t budgeted for on a resident’s salary.
One resource that helped me recalibrate: the Mortgage Calculator. I used it after the fact, but I wish I had run those numbers in advance to get a full picture of what “affordability” actually meant.
3. Your Co-Residents Will Think You’re Crazy—Until They’re Paying Rent Forever
Many of my classmates stayed in rentals with roommates or nearby studio apartments. They saw buying a home as too risky or too permanent. And I get it—residency is temporary, and being tied to real estate can feel limiting.
But here’s the reality: I sold my home three years later for a modest profit—enough to cover my moving expenses for fellowship and put a down payment on my next place.
For those exploring what’s possible even with relocation on the horizon, check out How to Relocate Across States with a Physician Mortgage Loan. It walks through how physician loans are often more flexible than conventional options when moving state to state.
4. You Don’t Need 20% Down—But You Do Need a Plan
Physician loans let you skip the traditional 20% down payment requirement. That’s huge. But not planning ahead financially is a trap. I maxed out my credit cards furnishing the house. I drained my savings on paint, light fixtures, and surprise plumbing repairs.
If I could go back, I’d read Tips for Financial and Career Success for Young Doctors and Med Students before moving forward. It offers smart financial habits every resident should know.
5. Maintenance Is a Time Vampire You’re Not Ready For
During residency, your time is your most valuable resource. The last thing I wanted to do post-call was meet a plumber, rake leaves, or fix a busted smoke alarm. But owning a home means there’s no landlord. It’s all on you.
There were weeks I felt buried between patient notes and yard work. If you’re going to buy, consider hiring help for things like lawn care or home repairs. It’s worth it.
6. Emotionally, It Was the Best Decision I Made
Residency was hard. There were nights I questioned everything. But coming home to a space that felt safe and stable—that was grounding. My small living room with mismatched furniture and an ugly green couch became my sanctuary. I will miss it when I can afford a nicer one… Maybe I can keep it in a basement.
Buying a home during residency doesn’t make sense for everyone. But if you do it with a clear understanding of the financials and your lifestyle, it can be one of the smartest investments you make early in your career.
What’s Next on Your Journey?
Buying your first home as a resident isn’t just a financial decision—it’s a personal one. Whether you’re still weighing your options or ready to start the process, take the time to build a strong foundation: understand your financing options, know your limits, and ask the right questions early.
You don’t have to figure it out alone. There are physician-friendly lenders, tools, and communities built specifically for residents and early-career doctors navigating this exact path.
Want to explore homeownership options tailored to your unique path as a resident or fellow?
👉 Get started with a personalized plan today and connect with physician-focused lenders who understand where you’re coming from—and where you’re going.
