Mortgages for Nurses – How We Can Help
Mortgages for Champions Helps Nurses
You’ve invested considerable time and money into your career. As a reward for your sacrifice, you can access financing that will make homeownership easier.
A career in nursing offers many benefits. Firstly, you get to help those in need. Also, a nursing career provides considerable flexibility. It also offers job security.
Nurses earn substantial salaries. On average, nurses earned $73,300 in 2019, according to the Bureau of Labor Statistics. These earnings equate to about $34.24 an hour for each working nurse.
With that kind of salary, you’d think nurses would find it easy to secure a home loan. However, this isn’t always the case.
To learn more about home loans for nurses, doctors, and other medical professionals, keep reading.
Why Nurses Need Help With Loans
A flexible schedule is great for nurses. However, lenders often view flexible schedules as an unstable income. This risk assessment is part of the loan approval process.
Even nurses with a full-time schedule may have trouble securing a loan. Often, nurses earn a significant part of their salary by working extra shifts. Unfortunately, lenders don’t weight extra shifts in the same way as they do regularly scheduled hours when considering a home loan.
Nursing schedules are complex—to say the least. Accordingly, it can prove challenging for nurses to paint a picture of a stable income to lenders.
Showing a steady income is particularly challenging for travel nurses. Often, nurses in this field have gaps in employment. They might also change employers frequently.
For example, travel nurses are some of the most highly paid professionals in the field. Still, it’s even more challenging for travel nurses to show a stable income.
Among all nurses, staff nurses have it the easiest when it comes to securing a loan. They have a solid base income to show lenders.
This characteristic helps them to pass a lender’s risk assessment. However, it still doesn’t guarantee that a mortgagor will approve a loan. For this reason, many nurses seek out special home loans for medical professionals—more on that in a moment.
Understanding Nurse Salaries
A staff nurse might show a letter to prove their base income to a lender. This kind of information is important to mortgagors. In most instances, however, a staff nurse’s base income is only a part of their yearly wages.
Nurses typically receive three kinds of pay. These payments include base hours, overtime, and shift differentials. However, as much as a third of nurses in the United States work overtime regularly.
This circumstance raises a question. How do nurses who work overtime regularly present their full income for a home loan risk assessment?
In part, the answer depends on how long you’ve worked as a nurse. If you’re a full-time nurse, a lender will consider all of your base pay. However, a lender may only consider other kinds of payments if you’ve received them for two or more years.
Also, the odds of receiving a loan approval depend on how your lender weighs non-base salary. In most instances, a lender views over time and differential pay differently compared to base pay. However, a lender that specializes in home loans for healthcare workers can help you to overcome this issue.
Calculating Your Income
When considering a home loan, it helps to evaluate your total income. Imagine, for example, that you’ve held the same position for 12 to 24 months.
You’ll need to collect pay stubs that show consistent bonuses, overtime, and differential pay. Next, you need to calculate your various types of income.
First, you’d calculate your base pay for two years. You’d multiply your weekly hours by your hourly pay rate to determine this figure.
Next, you’ll need to calculate your differential pay for two years. You’ll multiply the differential hours that you worked for two years by the rate for differential pay.
Finally, you’ll need to make a two-year assessment of your overtime pay. For this calculation, you’ll multiply the overtime rate by your hourly rate.
Among nursing professionals, travel nurses are the highest paid in the field. Ironically, they have the most difficult time securing loan approval. Still, with the right tactics, even travel nurses can access a home loan.
Negotiating With Mortgagors
If you’re a travel nurse, you’ll most likely have gaps in employment for any number of reasons. You may have worked on several short contracts.
Alternatively, your per diem may have changed. In yet another scenario, you may have changed travel nursing agencies.
Obviously, none of these circumstances mean that you’re a bad employee or have trouble finding work. However, it can prove challenging to show a lender otherwise if they view your work history out of context.
For this reason, it’s a good idea to write a letter explaining your work history. You should also request a letter from your current employer. The letter should explain that your nonstandard and overtime pay will continue.
Furthermore, you’ll want to request employment verification letters from the agencies you’ve worked for in the past. For this task, you should collect letters that cover at least two years of your work history.
Ideally, you’ll want to show a year of staff nursing experience. You also want to show a full year of travel nurse employment.
Hopefully, you saved important work-related documentation. This documentation should include your pay stubs, W-2s, and tax returns. It should also include any other information relating to working for travel nursing agencies.
It’s helpful to provide as many pay stubs as possible to your potential lender. This information will help them to calculate your qualifying income more accurately.
Programs for Home Loans for Nurses
Now, you know a bit more about negotiating with lenders. However, it’s helpful to learn more about programs that can make buying your home easier.
The Nurse Next Door Program
The Nurse Next Door Program is a national home buying program. It caters especially to nurses and healthcare workers buying a home.
The program is part of an initiative that also benefits other public service professionals. These professionals might work in education, law enforcement, or government. They may also serve as firefighters or in the military.
With the Nurse Next Door Program, public service professionals can realize their dream of owning a home. The program leverages a combination of grants, down payment assistance, and other benefits for first-time homebuyers.
The Nurse Next Door Program also offers assistance if you have credit issues. The program’s Fresh Start initiative can help you to get your credit back on track.
The Homes for Heroes Program
If you’re a registered nurse or nursing assistant, the Homes for Heroes Program can help you access a mortgage loan. For example, you can work with the program to refinance your home.
Also, the Homes for Heroes Program offers a .7% rebate for working with program real estate specialists. Furthermore, you’ll earn further savings when you work with a designated Homes for Heroes Program mortgage specialist.
On average, nurses save about $2,400 when buying or selling a home through the Homes for Heroes Program. Resultantly, real estate professionals who participate in the program can offer you great savings and rewards.
Finding the Right Mortgagor for Your Needs
By working with a mortgage expert such as Mortgages for Champions, doctors, nurses and other medical professionals can access a home loan. We eliminate many out-of-pocket costs for medical professionals. We also make accessing home loans for doctors, nurses, and other medical professionals much easier.
With Mortgages for Champions, you can eliminate 2% to 3% of the cost of securing a loan. For instance, you might save on:
• Commitment points• Loan application fees• Loan processing fees• Mortgage commitment fees
We also offer home refinancing for nurses that can allow you to access up to 97.75% loan-to-value of the appraised value of your home. You can also access a cash-out refinance mortgage for up to 85% loan-to-value for any reason.
Whether you’re a first-time homebuyer or buying your second property, Mortgages for Champions is your solution for accessing a loan. You can even secure a 203K loan for home renovations.
You may want to finance your first home. Alternatively, you might have an interest in purchasing multiple-family homes.
With our programs, you can even access a loan for a condominium or manufactured home. Furthermore, we can help you secure funding for mixed usage commercial property. What’s more, many of our programs require little to no down payment.
Trust Us to Help You Finance the Perfect Home
Now you know more about home loans for nurses, doctors, and other medical professionals. What you need now is a lender with a proven track record of providing home loan funding for medical professionals.
Mortgages for Champions a division of RealFiFunding has helped medical professionals access home loans for more than 20 years. We’re the national mortgage lender that doesn’t act like one!
Today, we’re one of the top correspondent mortgage bankers in the United States. We offer direct loans in 13 states, including CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, TX, and VA.
At RealFi Home Funding, we treat each and every borrower like family. Whether you want to purchase your first home or an investment property, we’ve got you covered.
Contact RealFi Home Funding today at (800) 601-1917 or simply fill out our online form here to get started with the loan application process.
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