SoFi

If you’re thinking about buying a home in the not-too-distant future, you may be wondering what kind of property to purchase. Would a single-family house be better, or perhaps a condo unit?

Some important factors: Do you prefer being in a city, perhaps in an apartment or townhome, or are you all about a house with a picket fence? Do you like handling your own gardening and picking your own front-door paint colors, or would you like to delegate that? Do you like neighbors close by or prefer privacy? Does your household include furbabies?

These are some of the considerations that may impact whether a house or a condo is right for you. Each option has its pros and cons, and of course, finances will play a role too.

To decide which might suit you best, take this house vs. condo quiz, and then learn more about some key factors.

House or Condo Quiz

Next, you might want to take these pros and cons into consideration as well.

Pros and Cons of Buying a House

A top-of-mind question for many people is, “Isn’t a house more expensive than a condo?” Cost is a factor, especially when buying in a hot market, and there can typically be a significant difference between a house and a condo when you are home shopping.

The median sales price of existing single-family homes was $404,400 in the fourth quarter of 2024, according to St. Louis Fed data, compared with a median existing condo price of $359,000 in December 2024, according to the National Association of Realtors®.

Now that you know that price info, look at these pros and cons when buying a house vs. a condo.

Pros of Buying a House

Among the benefits of buying a house are the following:

•   More privacy and space, including storage

•   A yard

•   Ability to customize your home as you see fit

•   Room to garden and create an outdoor space, just as you want it to be

•   Control of your property

•   Pet ownership unlikely to be an issue

•   Sometimes no homeowners association (HOA) or dues

•   Generally considered a better investment

Cons of Buying a House

However, you may have to contend with these downsides:

•   Potentially higher initial and ongoing costs

•   More maintenance inside and out

•   Typically higher utility bills

•   Potentially higher property taxes and homeowners insurance

•   Possibly fewer amenities (such as common areas, a gym, etc.)

If, after taking the quiz and weighing the pros and cons, buying a house feels like the right choice, you can start brainstorming about size, style, location, and price; attending open houses; and looking online.

Learning how to win a bidding war might also come in handy, depending on the temperature of the market.

Pros and Cons of Buying a Condo

A quick look at how condos work before diving in: Condominium owners share an interest in common areas, like the grounds and parking structures, and hold title to their individual units. They are members of an HOA that enforces community rules. Being a member of a community in this way is a key difference between a condo and a house.

Pros of Buying a Condo

Here are some of the upsides of purchasing a condo:

•   More affordable

•   Amenities included (this might include common rooms, a fitness center, and other features)

•   Potentially less expensive homeowners insurance and property taxes

•   Repairs and upkeep of the property typically taken care of

•   Typically lower utility bills

•   Security, if the community is gated or patrolled

•   Access to urban perks

Cons of Buying a Condo

Next, consider the drawbacks of condo living:

•   Less privacy

•   Typically no private yard

•   Rules and restrictions (about noise levels, outside wall colors, pets, and more)

•   Typically less overall space

•   HOA fees

•   Limited parking

•   Slower appreciation in value

Plus, the mortgage interest rate and down payment are often higher on a condo vs. a house of the same value, though that isn’t always the case, especially for a first-time buyer of an owner-occupied condo.

Conventional home loan mortgage lenders sometimes charge more for loans on condo units; they take into consideration the strength of the condo association financials and vacancy rate when weighing risk.

Mortgages backed by the Federal Housing Administration (FHA) are available for condos, even if they are not part of an FHA-approved condominium project, with a process called the Single Unit Approval Program.

An FHA loan is easier to qualify for and requires as little as 3.5% down, but you’ll pay upfront and ongoing mortgage insurance premiums.

What Are the Costs of a House or Condo?

As mentioned above, houses tend to cost more than condos. But here are a few other ways to look at the financials when comparing a condo vs. a house:

•   Condos tend to have lower list prices than houses which may mean a smaller mortgage. However, you also need to factor in monthly maintenance fees and HOAs so you get the full picture.

•   Condos may have assessments from time to time. These are additional charges to fund projects for the unexpected expenses, such as a capital improvement to the entire dwelling.

•   Homeowner fees are growing along with inflation, so when you make your purchase, understand that these charges are not static.

•   Before buying into an HOA community, it’s imperative to vet the board’s finances, including its reserve fund, how often it has raised rates in recent years, whether it has collected any special assessments or plans, and whether it’s facing any lawsuits.

•   If you are buying a house, keep in mind that maintenance and upkeep are your responsibility. This can mean everything from replacing a hot-water heater that’s reaching the end of its lifespan to dealing with roof repairs.

•   Down payments will vary due to several factors. For a condo, a down payment is typically around 10% but can vary considerably from, say, 3% to 20%.

•   With a house, a down payment could be from 3.5% with an FHA loan to the conventional 20% needed to avoid private mortgage insurance, or PMI. Those who qualify for VA loans may be able to buy a house without a down payment.

•   If you are buying a house, make sure to scrutinize property taxes and factor those into your budget. Those are not fixed and can rise over time.

Another smart move: Check out this home affordability calculator to get a better feel for the bottom line.

When Is a Good Time to Buy?

You may know what you’d like to buy (condo vs. a house) and where (in what neighborhood), but do you feel as though now is the right time? If so, fantastic.

You might decide, though, that you want to rent for a while longer under certain circumstances, which can include:

•   Hoping to wait out an overheated market and looking at price-to-rent ratios

•   Wanting to save more money for the down payment and closing costs (the bigger your down payment, the lower your monthlies will likely be)

•   Needing to boost your credit score first

•   Wanting to pay down credit card debt or other debt, which improves your debt-to-income ratio or DTI

•   Needing more time to look at houses and condos before deciding which path to take

The Takeaway

The condo vs. house decision depends on a multitude of factors. Reviewing the pros and cons of buying a condo vs. a house can at least give you a direction to start your search. And so can such givens as knowing that you want to be in a certain location (downtown in a condo instead of in a house on a couple of acres), or that you have lots of dogs and therefore want your own yard, and so forth.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOHL-Q125-045

The average salary for a doctor in California is $239,200 according to the latest data from the Bureau of Labor Statistics. Understanding the average salary of a profession can help you make a variety of important decisions, from what field you want to enter to where you want to live and work.

Here’s a closer look at how much medical doctors make a year in California, regional differences in salary, and the top-paying medical specialities in the state.

What Is the Average Salary for a Medical Doctor in California?

The average salary of a physician in the state of California is $239,200 per year, according to data from the U.S. Bureau of Labor Statistics (BLS). This figure doesn’t account for a physician sign-on bonus, which some doctors receive. Interestingly, California is squarely in the middle when it comes to average physicians’ salaries. The average salary in California lags behind a dozen states, including New Mexico, Wyoming, Colorado, and Connecticut.

Though many consider anything more than $100,000 a good salary, the fact that California’s pay is not top tier may come as a surprise to some. However, there are some possible explanations. For one, California spends the most on Medicaid among U.S. states. Medicaid — and Medicare, for that matter — both reimburse physicians at rates lower than their usual fees. Doctors who are seeing a lot of elderly or low-income individuals may see their incomes reduced.

Note that early in your career as a doctor, while you’re in your residency or fellowship, you’ll likely make considerably less than you will later in your career. You may need to budget wisely to get by on a medical resident’s salary.

You may also want to consider using a spending app, which can help you set financial goals and a budget and track where your money goes.

How to Become a Doctor in California

Doctors are health care professionals who are charged with meeting with patients, diagnosing their conditions, and managing their care plans. They perform tests and prescribe medications. And they must coordinate with a range of other health care professionals, including other doctors, nurses, and emergency medical technicians.
That’s a lot of responsibility, and as a result, it takes a lot of training to become a doctor.

First, you’ll need to complete a bachelor’s degree in a field that relates to medicine, such as premedicine, biology, or biochemistry.

Next, you’ll need to go to medical school, where you will receive classroom and practical training to advance your knowledge in the medical field. Medical school is typically a four-year program. While in school, you’ll complete the first and second parts of the U.S. Medical Licensing Examination (USMLE). The average cost of medical school can be high, typically running more than $60,000 a year at private institutions.

When you graduate from medical school, you’ll enter a residency program that helps you choose a medical specialty. These programs usually last three years (but may be as long as seven), and under the supervision of an experienced physician, you’ll work full time as a resident doctor. You’ll complete your residency by passing the third and final part of the USMLE.

After your residency, you can choose to complete a fellowship that gives you further training in the specialty you’ve chosen. Though fellows tend to make more than residents, their salary isn’t as high as new doctors. The good news is, there are ways to budget on a medical fellowship salary.

Finally, you’ll need to obtain a California medical license from the Medical Board of California. You can renew your license every two years, which requires 50 hours of continuing medical education.

Recommended: What Is the Average Medical School Debt?

Reasons to Become a Doctor

Becoming a doctor can involve a lot of challenges, but it can also be immensely rewarding work. Here are a few reasons you might become a doctor:

•   To help others: Doctors diagnose and treat medical conditions, helping to save and improve patients’ lives. They are often involved in ongoing treatment, ushering patients down the path to recovery. Being a physician is a people-centric profession that involves working closely with patients and their families to explain medical conditions and treatment options.

•   To work in the sciences: If you’re interested in a variety of scientific fields, from biology to chemistry to anatomy to pharmacology, being a doctor is a way to explore these subjects while also helping others.

•   To find purpose: The responsibility toward patients and coworkers and the ability to better people’s health and well-being often provide doctors with a sense of satisfaction and meaning in their work.

•   To become a teacher: Becoming a doctor requires a lot of schooling and ongoing training. Doctors may pass on this knowledge by educating patients on how to lead healthier lives, educating medical students in teaching hospitals, and supervising residents.

•   To have job security: The job outlook for physicians is relatively low, with the field expected to grow 3% through 2031. That said, there are still 23,800 openings for physicians projected each year, according to BLS data.

•   To make a good salary: The annual average wage for all workers in the United States is $59,228, according to the BLS — quite a bit lower than the $239,200 average annual pay for physicians in California. That means a new doctor’s budget could be easier to wrangle than other workers starting their careers, but then again, a M.D. may have considerable educational debt.

Recommended: What Is The Average Salary in the U.S.?

Best-Paying Medical Doctor Jobs in California

The medical speciality you pursue in California will have a big impact on your salary. According to BLS data, here are some of the highest-paid physicians in California:

Psychiatrist

Psychiatrists help diagnose and treat mental disorders. Unlike psychologists, they are allowed to prescribe drugs for medical treatment.

Mean salary: $256,930

Obstetricians and Gynecologists

OBGYNs provide medical care related to childbirth and diagnose and treat diseases of the female reproductive organs. They also specialize in women’s health issues like hormone problems, infertility, and menopause.

Mean salary: $278,660

Anesthesiologist

Before, during, or after surgery, anesthesiologists administer anesthetics (which reduce sensitivity to pain) and analgesics (which act as pain relievers).

Mean salary: $339,470

Cardiologists

Cardiologists diagnose and treat conditions of the cardiovascular system.

Mean salary: $423,450

Radiologists

Radiologists use medical imaging techniques, such as x-rays, MRIs, and ultrasounds to diagnose and treat diseases and injuries.

Mean salary: $353,960

Pathologists

A pathologist helps diagnose diseases by running tests on organs, tissue, and bodily fluids, such as blood.

Mean salary: $270,560

Surgeons

Surgeons are medical doctors that may have to perform surgery, a procedure that physically changes a patient’s body.

Mean salary: $409,665

Recommended: Starting (and Keeping) an Emergency Fund

The Takeaway

Being a doctor can be fulfilling, as it allows you to help people through work in the medical sciences. It can also be monetarily rewarding, and understanding average salaries can help you make decisions about where you want to live and what you want to specialize in. Though income varies by speciality, the average salary for physicians in California is $239,200 per year. Whatever you may earn, tracking your money and budgeting wisely can be important steps to financial wellness.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is a doctor’s yearly salary in California?

In California, a doctor can expect to make $239,200 per year on average, according to data from the U.S. Bureau of Labor Statistics.

What is the highest-paying medical specialty?

Among the highest-paid doctors in California are surgeons and cardiologists.

Who earns more: a dentist or a doctor?

In California, doctors tend to make more than dentists, who earn $170,910 per year on average.

Photo credit: iStock/Drazen Zigic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SORL-Q125-048

An income of $200,000 a year puts you in a good position to afford a home priced at $600,000. But whether you should aim higher or lower than this in your house hunt will depend on your debt, how much you’ve saved for a down payment, and current interest rates, among other factors. Read on for a breakdown of the variables that could affect how much of a mortgage you can manage.

What Kind of House Can I Afford with $200,000 a Year?

Not so very long ago, if you’d asked someone: “If I make $200,000 a year, how much house can I afford?” they probably would have said, “A mansion!” Of course, that isn’t necessarily true anymore. But that income still can get you a pretty sweet home in most places.

You can get an idea of how much house you can afford on a $200,000 income by using an online mortgage calculator or by prequalifying with one or more lenders for a home mortgage loan. Or you can run the numbers yourself using a calculation like the 28/36 rule, which says your mortgage payment shouldn’t be more than 28% of your monthly gross income, and your total monthly debt — including your mortgage payment — shouldn’t be more than 36% of your income. Let’s take a closer look at what could affect how much you can borrow and what your payments might be.


💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.

Understanding Debt-to-Income Ratio

You can expect lenders to look carefully at your debt-to-income ratio (DTI) — the second number in the 28/36 rule — when they’re deciding how much mortgage you can afford. It tells them how you’re handling the debt you already have and if you can manage more.

Your DTI ratio is calculated by dividing your total monthly debt payments by your monthly gross income. Mortgage lenders generally look for a DTI ratio of 36% or less; but depending on the lender and the type of home loan you’re hoping to get, you may be able to qualify with a DTI up to 43% or even 50%.

Typically, the lower your risk, the better your borrowing options. So if you want the best loan amount, rate, and terms, you’ll want to keep an eye on this number.

Your Down Payment Also Can Affect Costs

You may not need a hefty down payment to qualify for some home loans. But the more you can comfortably put down on a house, the less you’ll have to borrow, which can help lower your monthly payments. And if you put down at least 20%, you can avoid paying private mortgage insurance (PMI), which will further reduce your payments.

Other Factors that Can Affect Home Affordability

Your income, debt, and down payment are all primary factors in determining how much house you can afford. But there are other things that also can affect your ability to qualify for a mortgage that’s manageable, including:

Interest Rates

A lower mortgage interest rate can significantly lower your monthly payment — and the amount you’ll pay for your home over time. While interest rates are relatively consistent across the market, lenders do compete for customers, so you may benefit from shopping around. You also can help your chances of qualifying for a better rate by making sure your finances are in good shape and you have a solid credit score.

Loan Term

The most common mortgage term is 30 years, but different loan lengths are available depending on the type of mortgage you choose — and each has pros and cons. If you’re deciding between a 15-year vs. a 30-year mortgage, for example, the shorter term may offer a less expensive interest rate, which could save you money over the life of your loan. But the 30-year term will likely have lower monthly payments, which may be a better fit for your budget.

Homeowners Insurance

Understanding how to buy homeowners insurance and comparing the policies available may help you minimize this expense. Lenders require borrowers to have an adequate amount of homeowners insurance, and if you live in a state that’s considered “high risk,” the cost of coverage could be significant.

HOA Fees

If you’re buying in a community with lots of amenities, homeowners association (HOA) dues could add a substantial amount to your monthly home costs. (The monthly average is about $250, but fees can go as high as $2,500 or more.)

Property Taxes

Property taxes, which are generally based on the assessed value of a home, are often included in a borrower’s monthly mortgage payment, so it’s important to include this amount when you calculate home affordability. (Check your county’s website for the correct number.)

Location

If you’re a fan of real estate shows like House Hunters, you already know the city or even the particular neighborhood you want to live in can be a big factor in determining how much house you can afford. The overall cost of living can vary by state, and costs are also typically higher in cities vs. rural areas. If you aren’t willing to compromise on location, you may have to increase your housing budget to buy in the area you want.

Recommended: Best Affordable Places to Live in the U.S.

How to Afford More House with Down Payment Assistance

If you have the means to manage a higher monthly payment but you need some help with your down payment, there are state and federal down payment assistance programs that can help.

Many programs set limits on how much an eligible home can cost, or on the homebuyer’s income. But it’s worth checking out what’s available to you — especially if you live in a state with higher home values. In California, for example, where homes can be expensive, a first-time homebuyer with a $200,000 income still can qualify for assistance in some counties.

Home Affordability Examples

With a home affordability calculator, you can get a basic idea of how much house you can afford by plugging in some basic information about your income, savings, debt, and the home you hope to buy. Here are some hypothetical examples:

Example #1: Saver with a Little Debt

Annual income: $200,000

Amount available for down payment: $80,000

Monthly debt: $650

Mortgage rate: 6.5%

Property tax rate: 1.125%

House budget: $700,000

Example #2: Less Debt, But Also Less Savings

Gross annual income: $200,000

Amount available for down payment: $20,000

Monthly debt: $200

Mortgage rate: 6.5

Property tax rate: 1.125%

House budget: $605,000

How You Can Calculate How Much House You Can Afford

Along with using an online calculator to figure out how much house you might be able to afford on a $200,000 income, you also can run the numbers on your own. Some different calculations include:

The 28/36 Rule

We already covered the 28/36 rule, which combines two factors that lenders typically look at to determine home affordability: income and debt. The first number sets a limit of 28% of gross income as a homebuyer’s maximum total mortgage payment, including principal, interest, taxes, and insurance. The second number limits the mortgage payment plus any other debts to no more than 36% of gross income.

Here’s an example: If your gross annual income is $200,000, that’s $16,666 per month. So with the 28/36 rule, you could aim for a monthly mortgage payment of about $4,666—as long as your total debt (including car payments, credit cards, etc.) isn’t more than $6,000.

The 35/45 Model

Another DIY calculation is the 35/45 method, which recommends spending no more than 35% of your gross income on your mortgage and debt, and no more than 45% of your after-tax income on your mortgage and debt.

Here’s an example: Let’s say your gross monthly income is $16,666 and your after-tax income is about $13,000. In this scenario, you might spend between $5,833 and $5,850 per month on your debt payments and mortgage combined. This calculation gives you a bit more breathing room with your mortgage payment, as long as you aren’t carrying too much debt.

The 25% After-Tax Rule

If you’re worried about overspending, or you have other goals you’re working toward, this method will give you a more conservative result. With this calculation, your target is to spend no more than 25% of your after-tax income on your mortgage. Let’s say you make $13,000 a month after taxes. With this method, you would plan to spend $3,250 on your mortgage payments.

Keep in mind that these equations can only give you a rough idea of how much you can spend. When you want to be more certain about the overall price tag and monthly payments you can afford, it helps to go through the mortgage preapproval process.

Recommended: 2024 Home Loan Help Center

How Your Monthly Payment Affects Affordability

Some eager homebuyers can tend to put most of their focus on a home’s listing price or the interest rate. But it’s how those factors and others combine to raise or lower the monthly payment that can ultimately determine whether a buyer can afford the home or not.

Before signing on the dotted line, it’s a good idea to run the numbers on an online mortgage calculator to be confident you can stay on track.

If you do find yourself struggling a bit — perhaps because your income changes or an unexpected life event occurs — refinancing to a new loan with a lower payment may be an option. (Especially if interest rates drop.) But how soon you can refinance may depend on the type of loan you have.

Types of Home Loans Available to $200,000 Households

A $200,000 income can go a long way toward helping a buyer qualify for certain mortgage options, such as a conventional or jumbo loan. But a higher salary also could make you ineligible for a government-backed loan that has income limits. There also may be limits on the purchase price and type of property, depending on the mortgage you get.

Here are a few of the options that may be available to $200,000-income households:

Conventional Loans This loan is issued by a private lender, such as a bank, credit union, or other financial institution.

FHA loans Insured by the Federal Housing Administration, FHA loans are a good resource for borrowers with a lower credit score or little money available for a down payment. There are no limits on how much you can earn and get an FHA loan, but there may be a limit on how much you can borrow depending on where you plan to reside.

VA loans A loan guaranteed by the U.S. Department of Veterans Affairs is an excellent option for eligible members of the U.S. military and surviving spouses. There are no income limits on VA loans, and there are no longer standard loan limits on VA direct or VA-backed home loans.

USDA loans These loans are guaranteed by the U.S. Department of Agriculture and are meant to help moderate- to low-income borrowers buy homes in eligible (typically rural) areas. Loan limits and income limits are based on the home’s location.


💡 Quick Tip: Keep in mind that FHA home loans are available for your primary residence only. Investment properties and vacation homes are not eligible.

The Takeaway

There are several variables that factor into how much home you can afford. Besides your income, lenders will look at your credit, your debt, and your down payment to determine how much you can borrow. To find a loan and monthly payment that’s a good fit for you, it’s a good idea to research and compare different loan types and amounts. And, if you have questions, you can seek advice from a qualified mortgage professional.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Is $200,000 a good salary for a single person?

According to the Census Bureau, only 11.5% of U.S. households earned $200,000 or more in 2022. So, if you’re earning $200,000 all on your own, you could say you’re doing pretty well.

What is a comfortable income for a single person?

“Comfortable” is a subjective term and can vary from one person to the next. For some people comfortable means being able to buy what they want. For others it means crafting and following a careful budget so that they know where their money is going each month.

What is a livable wage in 2024?

The Massachusetts Institute of Technology’s Living Wage Calculator lists living costs across the U.S., and its “livable wage” varies widely based on family size and location. For a single person with no children in Napa County, California, for instance, the living wage is $21.62 per hour. In Boone County, Nebraska, it’s $14.93 per hour.

What salary is considered rich for a single person?

The top 5% of earners made, on average, $335,891 in 2021, the most recent year for which data is available, according to the Economic Policy Institute. (If you feel as though you have to be in the top 1% to be “rich,” you’d have to earn $819,324 or more.)

Photo credit: iStock/YvanDube

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL0124061

The demand for dentists, like other health care professionals, is on the rise, partly due to an aging U.S. population and partly due to more attention on dental health with each generation. The aging population is likely to need additional oral care, some of which can include complicated procedures.

By learning about the average tuition costs and ways to pay for dental school, prospective students can figure out if a dental career is the right choice for their future.

Keep reading to learn more on the employment outlook for dentists, ways to pay for dental school, how to pay for dental school without loans, and more.

Employment Outlook for Dentists

The U.S. Bureau of Labor Statistics (BLS) projects there to be a 5% increase in available dentist jobs from 2023 to 2033. Dentists can work in a variety of settings, such as private practice — either on their own or with a partner — or in an outpatient care center, among others.

The median annual salary of a general dentist was $170,910 in 2023. For perspective, the median annual U.S. income in the same year was $65,470.

While dentistry pays well, it also costs a lot to become a dentist. Dental school programs typically take four years to complete after students have already completed a bachelor’s degree. A degree from an accredited dental school will be either a D.D.S. (Doctor of Dental Surgery) or a D.M.D. (Doctor of Dental Medicine).

Individual universities determine which degree is awarded, but they are both approved by the Commission on Dental Accreditation (CODA), a part of the American Dental Association (ADA). Whichever degree a dental graduate is awarded, chances are they may also have hundreds of thousands of dollars worth of student loan debt to contend with after graduation.

How Much Does Dental School Cost?

The range of dental school costs depends on whether a student is in-state (resident) or out-of-state (non-resident), and whether attending a public or private school. In-state public school tuition is typically going to be the least expensive option for most students.

According to the ADA, the average first-year cost of dental school (public or private), including tuition and mandatory fees, in 2023-2024 was $44,608 for residents and $75,163 for non-residents.

The cost difference between public schools and private schools can be substantial. The average resident cost for the first year of a public dental school program was $41,711, while the first-year cost for private dental school was $84,842 in 2023-24. After four years in school, students are looking at an average of $293,900 in debt.

Prospective students can compare the cost of dental schools and then determine how much they are willing to pay for their education. According to the ADA, there are 81 accredited dental schools throughout the United States and 10 in Canada.

Ways to Pay for Dental School

Even though dental school tuition can be expensive, students have options when figuring out how to pay for dental school. Students can explore scholarships, grants, fellowships, and service programs to help pay for dental school.

Federal and private student loans are also an option. After graduating from dental school, some borrowers may consider refinancing their student loans as they pay off dental school debt. Continue reading for more details on paying for dental school.

1. Scholarships and Grants

Scholarships and grants are awards that, in most cases, don’t have to be repaid. For students without the means to pay for tuition and other costs from personal savings, exploring these options may be a good place to start.

Dental schools may offer scholarships and grants to students who meet certain academic standards or who are working towards a certain type of degree, for example. When researching dental schools, prospective students may consider asking financial aid offices about available scholarships and grants.

Along with reaching out to schools, students may want to research scholarships and grants through organizations like the American Dental Association, the American Association of Public Health Dentistry, or the American Dental Education Association. There are also a variety of online scholarship search tools that students can use to find scholarships.

Recommended: What Is a Scholarship & How to Get One?

2. Service Programs

Several service programs can help pay for dental school, including:

•   National Health Service Corps (NHSC): This federal program offers scholarships and loan repayment options to dental students who commit to working in designated Health Professional Shortage Areas (HPSAs) after graduation. Scholarships cover tuition, fees, and living stipends, while loan repayment programs reduce educational debt in exchange for a minimum service obligation of two years.

•   Armed Forces Health Professions Scholarship Program (HPSP): Provided by branches of the U.S. military, HPSP covers full tuition for dental school, offers a monthly living stipend, and may include bonuses. Participants serve as military dentists for a designated number of years after completing their education, gaining valuable clinical experience and leadership training.

•   Indian Health Service (IHS) Loan Repayment Program: This program is aimed at improving dental care access in Native American and Alaska Native communities. Dentists receive up to $40,000 in loan repayment for a two-year service commitment at an IHS or Tribal site. Participants can extend their service for additional loan repayment benefits.

•   Public Health Service Commissioned Corps: This program allows dentists to serve as officers in the U.S. Public Health Service, providing care in federal agencies like the Centers for Disease Control and Prevention (CDC), Bureau of Prisons, or the Food and Drug Administration (FDA). Participants may receive loan repayment assistance and competitive salaries.

•   State-based programs: Many states offer incentives such as scholarships, grants, or loan repayment programs to dental professionals willing to practice in rural or underserved areas. These programs vary by state and may require service commitments ranging from two to five years.

Each program offers financial relief but requires a contractual commitment to serve specific populations or organizations.

3. Federal Student Loans

Completing the FAFSA® (Free Application for Federal Student Aid) form is the first step students should take to determine eligibility for federal financial aid. To fill out the form, they will need to provide personal identification and financial records.

Federal student loans for graduate and professional school students are either Direct Unsubsidized Loans or Direct PLUS Loans. Students may borrow up to $20,500 each year in Direct Unsubsidized Loans, and eligibility is not based on financial need.

If a student has costs in excess of that borrowing limit, they may want to consider a Direct PLUS Loan. Like a Direct Unsubsidized Loan, eligibility for a Direct PLUS Loan is not based on financial need, although a credit check is required.

Students are encouraged to ask the financial aid office at their school about school-based loans that might be available. Some federal funds are offered to schools instead of directly to students and are tied to certain eligibility requirements.

4. Private Student Loans

It’s always recommended that students exhaust all federal student loan options before considering a private student loan. But if there is still a financial need, a private student loan may be the right choice for some students. Private student loans are available from private lenders and are awarded based on factors including your income, credit history, and credit score, among other factors.

Considering Student Loan Refinancing

After graduating, dentists may consider refinancing their student loans to secure a more competitive interest rate or more favorable terms. Refinancing also allows borrowers to combine all their loans into a single loan. This won’t be the right choice for all borrowers because when you refinance federal loans you’ll lose access to any federal benefits — like any loan forgiveness options.

Should you refinance your student loans? The answer is personal and will depend on factors including the amount of student debt you currently have, your credit score, income, and whether you are your income, and whether you are refinancing with or without a cosigner.

Recommended: Student Loan Refinance Guide

5. Employment

Dental school is rigorous, but if students have the time and energy, they may want to consider working to supplement their educational costs. The federal work-study program is available to graduate and professional students with financial need, and has the same eligibility requirements and position availability as it does for undergraduate students. Financial aid offices at individual schools will have information pertaining to this program.

Training grants and fellowships, an option some dental students might find appealing, are sources of funding that often include a stipend and sometimes cover part of a student’s tuition.

These programs are designed to further a student’s education in a specific research area that interests them. They differ from simple grants in that there is a work component to them.

The Takeaway

Dental school can be expensive but can lead to a fulfilling and lucrative career. When determining how to pay for dental school, students can explore dental school scholarships, grants, federal student loans, and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

How do students afford dental school?

Students afford dental school through a combination of federal and private student loans, scholarships, grants, and work-study programs. Some seek financial aid through military service or dental school repayment programs. Budgeting, saving, and seeking loan forgiveness options also help manage the significant costs associated with dental education.

Does FAFSA cover dental school?

Yes, FAFSA can cover dental school by determining eligibility for federal financial aid, including Direct Unsubsidized Loans and Grad PLUS Loans. While FAFSA doesn’t directly pay for dental school, it provides access to federal loans and grants, helping students finance their education and manage costs effectively.

Is it possible to go to dental school for free?

It is possible to attend dental school for free through scholarships, grants, and service-based programs. Options include military scholarships, school-specific awards, and programs like the National Health Service Corps, which cover tuition in exchange for service commitments in underserved areas after graduation. Financial aid opportunities vary by eligibility.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.