Should You Buy or Rent This Summer as a Resident Physician? White Coat Mortgage Addition
TLDR:
If you’re starting residency this summer, you’re likely debating between renting or buying a home. While renting may seem easier, physician mortgage loans allow you to purchase a home before your first paycheck, with little to no down payment and no PMI. In this post, we break down the pros and cons of both options, outline how doctor loans work for residents, and help you decide if buying now makes sense for your financial goals and lifestyle.
The Summer Housing Dilemma: Rent or Buy?
Every June, thousands of new physicians face the same question: Should I rent or buy before starting residency? At first glance, the answer may seem obvious — rent. After all, you’re starting your first job, moving to a new city, and juggling licensing, onboarding, and scheduling.
But many new doctors are surprised to learn that buying a home as a resident is not only possible — it can also be smart. With the right loan program, you may be able to:
- Purchase a home with 0% down
- Avoid private mortgage insurance (PMI)
- Qualify using your signed employment contract
- And even lock in monthly payments lower than rent
Why Renting Feels Like the Safe Option
Renting is often the default for residents — and with good reason. It offers flexibility during a time of rapid change. Common reasons new doctors rent include:
- Uncertainty about how long they’ll stay in the area
- Lack of savings for a down payment
- Belief that they won’t qualify for a mortgage yet
- Fear of being tied down during an intense training schedule
These concerns are valid — but not always grounded in the current financing landscape, especially with physician loans designed for your situation.
What Makes Physician Loans Ideal for Residents?
Physician mortgage loans were created specifically for:
- Residents
- Fellows
- Attending physicians in their early career stage
Here’s why they work so well for incoming residents:
✅ Approval with an Employment Contract
You can close on a home before you begin work, as long as you have a signed residency agreement.
More on this in Secure a Home Loan Before Your Residency Starts
✅ 0–5% Down Payment Options
You don’t need a huge cash reserve. Many physician mortgage programs offer 100% financing for residents with strong credit and a verified job offer.
✅ No PMI Required
Even with no money down, you can avoid PMI — a fee that adds no value but typically costs hundreds per month on conventional loans.
✅ Flexible DTI (Debt-to-Income) Ratios
Lenders account for your future earnings, not just your current bank statement. They also treat student loans more leniently, which is crucial if you have six-figure medical school debt.
Comparing the Numbers: Rent vs. Buy
Let’s look at a simplified example:
Location: Charlotte, NC
Home Price: $300,000
Rent Price: $2,000/month
Mortgage (Physician Loan):
- $0 down
- No PMI
- 7.0% interest (fixed)
- Monthly payment (principal + interest): ~$1,995/month
That’s about the same monthly cost — except with buying:
- You’re building equity
- You can write off mortgage interest (depending on your income and filing status)
- You’re locking in a stable payment vs. facing rent increases
Want to test your own numbers? Use our Doctor Mortgage Calculator
The Case for Renting During Residency
While physician loans are powerful, buying isn’t right for everyone. Here’s when renting makes more sense:
🕒 Short Residency Duration
If your program is 1–2 years, and you don’t plan to stay in the area afterward, renting may be simpler.
📦 Frequent Moves
Residents who may move for fellowship or another role soon after graduation may prefer the flexibility of renting.
🧑⚕️ Heavy Workload Concerns
Residency can be demanding. If you’re not ready to deal with repairs, maintenance, or managing a home, renting may reduce stress.
🛑 Credit or Documentation Issues
If you’re still working on your credit score, or don’t have a solid employment offer yet, it may be better to wait.
The Case for Buying During Residency
That said, many residents successfully buy homes — and benefit in ways they didn’t expect.
📈 Equity Growth
You can build thousands in equity over 3–5 years — money you’ll get back if you sell or rent the home after graduation.
🏡 Predictable Costs
You’ll avoid rent hikes, renewal drama, and landlord restrictions.
🛠️ Personalization & Ownership
You can customize your home, make long-term improvements, and enjoy a space that’s truly yours.
🔁 Option to Rent It Out Later
Many residents turn their starter home into a rental property after graduation, creating passive income and long-term investment growth.
Don’t Let These Myths Hold You Back
There are several persistent misconceptions about home buying for residents. Let’s set the record straight:
❌ “I can’t afford a down payment.”
✅ With a physician loan, you may not need one.
❌ “I have too much student loan debt.”
✅ Physician loans treat student loans differently — and may not even count them at all.
❌ “I have to wait until I start getting paychecks.”
✅ You can qualify using your signed employment agreement.
❌ “It’s too risky to buy right now with high rates.”
✅ Rates are only one factor — and you can refinance later if they drop. Meanwhile, you’re building equity.
Check out Physician Loans: Your Path to Easy Homeownership to see why now can still be the right time to buy.
What the Data Says About Renting vs. Buying in 2025
According to a recent report by Zillow, in more than half of U.S. metro areas, it’s now more affordable to buy than rent — particularly for buyers with low down payments and stable income.
In fast-growing medical hubs like Phoenix, Raleigh, and Columbus, rent prices are increasing faster than mortgage payments, making homeownership a better financial decision for those planning to stay 3+ years.
When Does Buying Make the Most Sense?
You should consider buying if:
- You’re starting a 3+ year residency
- You have a signed job contract
- You plan to stay in the city after training
- You want to build equity instead of paying rent
- You qualify for a physician loan with 0% down
If you’re not sure whether you’re ready, start by reading Doctor Mortgage Loans – Complete Guide to a Mortgage Loan to understand your options.
Final Thoughts: Your Decision, Backed by Strategy
As a resident physician, you’re entering a demanding phase of life — but also a financially pivotal one. Choosing between renting and buying is deeply personal, but the myth that “residents can’t buy” simply isn’t true anymore.
Physician mortgage loans offer unique access to homeownership even before your first paycheck, giving you the chance to invest in your future and secure a stable place to call home.
Want to see if buying is the right move for your situation?
Use our Doctor Mortgage Calculator or connect with a physician loan expert to explore what’s possible before residency begins.
