So You Are A Nurse & You Need A Mortgage!
Mortgages for Health Care Professionals
Nursing is a flexible career choice for those looking for a fulfilling role in helping others. The average salary is around $73,000, making it an attractive financial choice as well.
However, if you’re looking to purchase a home, there can be some drawbacks to being a nurse. Mortgage lenders and banks often look at a nurse’s flexible schedule as being unstable. It’s also hard to figure out your full-time hours when many shifts nurses take are extra ones.
This guide will go over the different mortgage options for nurses. Just because your job situation can be complex doesn’t mean that you shouldn’t be able to qualify for a quality mortgage.
How to Qualify for a Mortgage as a Nurse
Staff nurses have the easiest time qualifying for a mortgage over other types of nurses. One of the primary reasons is the fact they have a base income that they can show to mortgage lenders. That’s a positive for them when lenders conduct their risk assessment.
However, that doesn’t mean they’re guaranteed to get a mortgage. A staff nurse can show a lender or bank proof of their base income, but that doesn’t always reflect their actual income.
The wages a nurse brings home are broken up into a few different types of pay. These include:
- Overtime
- Shift hours
- Shift differential
A large portion of nurses work more than their assigned shift. It can be difficult for a lender to account for a nurse’s actual income.
A lender will look at how long a nurse has worked at their current position. The other types of pay they receive will be included if they’ve received that type of pay for over two years. That shows they consistently get that type and amount of pay.
Mortgage lenders or banks will weigh salary income that’s not included in your base pay differently when figuring out how much you qualify for. That includes weight night shift differential and overtime pay differently than what’s in your base salary.
How to Qualify for a Mortgage as a Travel Nurse
A travel nurse is an individual that’s hired on a contract to fill a hospital or other healthcare facility’s staffing needs. Since the nature of their work can be sporadic, it can be hard to secure a mortgage. Like with a staff nurse, it depends on your work history and where you’re currently employed.
As a travel nurse, there may be gaps in your employment. This can be due to having a few short contracts or changes in the agency you worked for. This doesn’t mean you’re a bad employee, but a lender may interpret these gaps differently.
When applying for a mortgage as a travel nurse, there are a few ways to give them context for your employment gaps:
- Provide records of your end of the year documentation, W-2s, and paystubs
- Draft a letter that explains your circumstances
- Ask for a letter from your employer that gives tells how non-standard and overtime pay will continue
- Request employment verification from the various nursing agencies you’ve worked for
- Give the lender proof of employment history for at least two years
Giving the lender as many pay stubs as possible will help them when calculating your qualifying income. They’ll be able to more accurately determine what your income is. You’ll qualify for a better amount when the lender has a more complete picture of your finances.
If you get denied a loan, don’t distress. There are many mortgage loans for healthcare professionals available. Different agencies provide various services for those working in healthcare.
You can also check with the National Association of Nurses and other nationwide programs to see what resources they offer.
Mortgage Loan Assistance Programs for Nurses
There are a variety of loan assistance programs available with mortgages for nurses. At Mortgages for Champions, we offer assistance for healthcare professionals that have a medical degree or certificate. This includes:
- Nurses
- Pharmacists
- Therapists
- Social workers
- Chiropractors
Our program reduces the amount of red tape and paperwork you’ll encounter. We can also help out with the additional out-of-pocket costs that come along with mortgage financing programs.
The program also eliminates the following items:
- Loan processing fee
- Loan application fee
- Mortgage commitment fee
- Mortgage underwriting fee
It also eliminates commitment points, which can save between 2-3%. Our program also includes the following items:
- Financing for a single-family home, condominium, manufactured home, or multi-family unit
- First time or second time home buyer program
- Financing for mixed usage commercial property
- Loan programs with little to no down payment
- Low-interest rates
- Highly flexible credit criteria
- Refinancing programs
No matter where you are in your homebuying journey, Mortgages for Champions is here to help. You can find additional information on loans available on all nurse mortgage websites.
Explore Mortgage Options for Nurses
There are a variety of different types of home loans available, including Fannie Mae loans for nurses. It all depends on your financial situation and other factors.
Conventional Loans
Conventional home loans aren’t backed by a government agency. Your credit score typically needs to be at least 620. However, lenders usually want a score that’s above 740.
With a conventional loan, you may be able to put down as little as 3% for a down payment. It depends on your financial situation. Providing your lender with multiple paystubs and financial information will increase your chances as a nurse.
A conventional loan doesn’t have as many restrictions as other types of loans. You can use it to buy a rental property or a second home. The interest rates are also fixed during the lifetime of your loan.
Conventional loans also have a higher amount that lenders are willing to loan out. There are also no upfront costs for funding the loan.
The higher credit scores needed for a conventional loan are often a deterrent for people. Some government-backed loans only need a 500 credit score.
If you have a high credit score and can put down a larger down payment, a conventional loan may be the right choice for you.
USDA Loans
A USDA loan (United States Department of Agriculture) helps nurses finance homes that are in eligible rural areas. For a moderate-income household that wants to buy a home in a rural area, these loans give nurses a great opportunity.
These types of loans don’t need down payments and have low interest rates. This is also a good option if you’re struggling to qualify for a conventional loan.
Some of the advantages include:
- No down payment required
- Fixed and affordable interest rates, often as low as 1%
- The length of the loan is around 33 years
- You can use the loan to build a home
- Flexible credit guidelines
- Can be used to refinance a current home
USDA loans do have strict requirements, so reach out to one of our specialists if you have any questions. With our reduced fees, it’ll make the loan process much smoother.
Some of the eligibility requirements of a USDA loan include:
- Applicants need to be a US citizen
- Need to be without sanitary, safe, and decent housing
- House needs to be your primary residence
- Applicants need to meet income eligibility
- Can’t be barred or suspended from participating in federal programs
- Need to have a stable income
While USDA loans do have strict requirements, if you meet them, then they’re a great option for nurses. Not having to provide a down payment can be a lifesaver for someone attempting to get a home loan.
FHA Loans
An FHA (Federal Housing Administration) loan is insured by a governmental agency. The loan is sent out by an approved mortgage lender. This type of loan is ideal for moderate-income households that have low credit scores.
An FHA loan also requires a lower down payment. You can supply a 3.5 to 10% down payment. It doesn’t only apply to first-time home buyers.
Most nurses can qualify for an FHA loan since the requirements aren’t as rigid as with a conventional loan. Lenders look at an individual’s credit and work history. You can also roll your closing costs into the loan, so you don’t have to provide that money upfront.
There is an upfront funding fee, but Mortgages for Champions is available to help with this cost. Don’t let that deter you from applying.
Apply Now for a Mortgage With Mortgages for Champions
No matter your profession, you shouldn’t have to face red tape when qualifying for a home loan. There are plenty of mortgage options for nurses available if you know where to look. There are also agencies out there willing to help reduce additional costs and help you through the process.
To see if you qualify for a mortgage with Mortgages for Champions, fill out our online application.
Also Please See – https://www.mortgagesforchampions.com/mortgages-for-champions-offers-nurses-savings-on-closing-costs/ https://www.mortgagesforchampions.com/about-rh-funding-blog/ https://www.mortgagesforchampions.com/home-loans-for-doctors-nurses/ RealFi Offer the Best Mortgages for Champions