Buying a Home While in Residency or Fellowship: Is It Worth It?
Buying a Home While in Residency or Fellowship: Is It Worth It?
For many physicians-in-training, the idea of buying a home during residency or fellowship may seem premature or financially risky. After all, you’re still building your income, balancing long hours, and may not be sure where you’ll end up long-term. But in cities like Portland—where home prices continue to climb—it can actually be a savvy move with long-term benefits.
The Potential Upside
There are several compelling reasons to consider homeownership while still in training. First and foremost, you begin building equity early, which puts you ahead of the game compared to renting. Rather than throwing away money on rent, your monthly payments contribute to an asset that can grow in value. In fast-appreciating markets like Portland, locking in today’s home prices can shield you from future increases—and potentially put you in a position to sell at a profit when you move on.
Another advantage? Many residents and fellows find ways to “house hack” by renting out spare bedrooms to roommates. This rental income can offset a significant portion of your mortgage, making homeownership more affordable than you might expect. Plus, specialized physician loan programs allow you to qualify based on your future earning potential, even before you’ve started attending-level work. These loans often come with perks like 0% down, no private mortgage insurance (PMI), and more flexible debt-to-income ratios.
The Risks to Consider
Of course, buying a home during training isn’t without its drawbacks. One of the biggest considerations is the shorter time horizon. If you're only going to be in the area for a year or two, the costs of buying and selling (including closing costs, commissions, and possible market fluctuations) may outweigh the benefits. You’ll also need to maintain some financial flexibility for emergencies or relocation.
Additionally, buying the right property is key. Location matters more than ever when you’re uncertain about your long-term plans. A well-located home that’s attractive to both future buyers and renters will offer more options down the line—whether you sell, rent it out, or keep it as a long-term investment.
Loan Programs That Make It Possible
Thankfully, several loan programs are tailored specifically to the needs of physicians. Many lenders offer “doctor loans” that require no money down and waive the usual PMI requirement, which can save hundreds per month. These programs are designed with the understanding that while your current income may be modest, your earning trajectory is strong. Lenders often accept a signed employment contract as proof of income, which helps residents and fellows qualify well before their first attending paycheck arrives.
When It Makes the Most Sense
Buying a home during training tends to work best under specific conditions. If you know you’ll be staying in the area after fellowship—or you’re open to converting the property to a rental later—then buying can make strong financial sense. It also helps if you have family support or savings that can cushion the initial costs of homeownership. And if you plan to rent out a room or two, the income can dramatically reduce your out-of-pocket expenses.
Final Thoughts
While not right for everyone, buying a home during residency or fellowship can be a powerful wealth-building tool—especially in a growing market like Portland. With the right guidance, financial strategy, and long-term outlook, it might just be one of the smartest decisions you make early in your medical career.