My fiance and I are trying to determine whether or not we should rent or buy a house. She is a second year resident physician and is currently in the process of applying for a fellowship. Her first choice would be to stay where we are, in which case, she would start her fellowship as soon as her residency ends (June 30, 2012). However, there is a small chance that she might be accepted into a fellowship in another state and start there on the same date.
Regions does a physician home loan that has a zero percent down payment, $ 0 PMI, and around a 4.75% APR on a seven year ARM. Regardless, of if we stay here or move somewhere else for her fellowship, we do not plan in staying in this house for more than three or four years, probably.
Between us, we have around $ 50,000 saved up. We are really wanting a place with a garage, because she is leaving and coming home at all hours with her work schedule. There are only two apartment complexes in our city that have apartments with attached garages. Both of them cost $ 1150 per month. Houses are even more expensive than that, for older, low quality construction.
Would buying a house with the above terms be a bad deal, even if we only live in it for 1 1/2 to 3 years?
Oh, we make about $ 90,000 between us and are looking at homes in the $ 200,000 – 275,000 price range.