Should a Resident Buy a Home with a physician mortgage? Weighing the Pros and Cons
April 30, 2025
TLDR
Buying a home during residency can make sense—but only if it fits your timeline and your bandwidth. If you matched in a city you’d actually stay in long-term, a physician mortgage can make ownership realistic with low-to-no down payment, no PMI, and more flexible student-loan/DTI treatment. Add in stability for a spouse/kids/pets and the chance to build equity (and maybe catch appreciation), and buying starts looking less like a stretch and more like a strategy.
Renting is usually the better move when your future location is uncertain, the market feels overheated, or you don’t want surprise costs and maintenance competing with your training. Before you buy, pressure-test it with a few questions: are you staying put, can you afford everything beyond the payment (taxes, insurance, maintenance, closing costs), do you have an emergency buffer, and what’s your backup plan if fellowship or an attending job pulls you elsewhere?
For medical residents, the question of whether to buy a home is complex. Residency is a demanding period filled with long hours, unpredictable schedules, and financial constraints. Yet, some residents choose homeownership, while others prefer to rent until they complete their training. If you're a resident trying to decide whether to buy a home, here are key factors to consider.
Reasons to Buy a Home as a Resident
You Matched in a City Where You Want to Stay Long-Term
If you matched in a location where you see yourself practicing after residency, buying a home can be a great investment. Instead of renting for several years, purchasing a home allows you to start building equity early.
Physician Mortgage Programs Make Buying Easier
Many lenders offer physician mortgage loans that require little to no down payment, don’t require private mortgage insurance (PMI), and have flexible debt-to-income (DTI) calculations. These loans recognize the unique financial situation of residents and can make homeownership more feasible.
Tax Benefits of Homeownership
Homeownership provides tax advantages, such as mortgage interest deductions and property tax write-offs, which can help offset some of the costs.
Stability for You and Your Family
If you have a spouse, children, or pets, owning a home can provide the space and stability your family needs. Renting can feel temporary, and frequent moves can be disruptive for a growing family.
Potential for Property Appreciation
In some markets, real estate values increase over time. If you purchase in a growing area, you could build wealth by selling your home at a profit when you’re ready to move.
Reasons to Wait and Rent Instead
Uncertainty About Your Future Location
If you’re unsure where you’ll practice after residency, buying a home might not make sense. Selling a home after just a few years can be costly, especially if the market declines.
High Upfront Costs and Monthly Expenses
Even with a physician mortgage, buying a home comes with costs like property taxes, homeowners insurance, maintenance, and closing costs. Renting often provides more financial flexibility.
You Can Save More by Renting
As a single resident or someone who’s comfortable with roommates, renting may allow you to live in a less expensive shared space while saving money for a future home purchase when you’re earning more.
Residency Workload and Home Maintenance
Homeownership requires maintenance—repairs, landscaping, and unexpected costs. With a demanding residency schedule, handling home repairs might not be practical.
Housing Market Uncertainty
If real estate prices in your area are at their peak, it may be better to wait until prices stabilize rather than buying at a high point.
Key Questions to Ask Before Buying a Home in Residency
Do I plan to stay in this city after residency?
Can I afford the costs beyond the mortgage payment?
Am I financially prepared for unexpected expenses?
Will homeownership affect my ability to focus on training?
Do I have a backup plan if I need to relocate?
Final Thoughts: Should You Buy a Home as a Resident?
There’s no universal answer—buying a home as a resident makes sense for some but not for others. If you plan to stay in your city long-term and can comfortably afford homeownership, it could be a wise investment. However, if you're uncertain about your future or prefer financial flexibility, renting may be the better choice. Before making a decision, consult with your spouse or family. You have access to a great program with the physician mortgage. Don’t be afraid to consult a physician mortgage specialist to explore your options. A well-informed decision now can set you up for financial success in the future.
