Nurses are an essential part of society and make wonderful housekeepers. Nurses have high wage income and stable employment. In addition, they meet the mortgage industry’s 2-year work history requirement with a completed nursing school degree.
Mortgage lenders approve nurseries across a wide range of credit scores and allow nurseries to make little or no down payment for a home. Nurse practitioners can move into homeownership as other professionals do – through traditional mortgage loans and government-backed entities.
The most challenging aspect of getting approved for a mortgage for a nurse is showing proof of income.
This post outlines home loans for nurses, how to choose the best option, and useful tips for income verification.
4 Best Mortgage Loans For Nurses
There are four low and no down payment mortgages for nurses. Loans are government backed and available in all 50 states and Washington DC
Special applications are not required.
1. Conventional Mortgage for Nurses
Best suited for: Nurses looking for low down payment options
Conventional mortgages represent 78 percent of mortgages created, and many nurses use conventional mortgages to purchase their first homes. Conventional loans are backed by government agencies Fannie Mae or Freddie Mac and allow down payments as low as 3 percent.
Conventional mortgages are the default mortgage option for most home buyers:
- 3% down payment with rates as low as 20% down
- Subsidized interest rates in low and middle income areas
- Flexible Income Guidelines for Nurses with Contract Documentation
Get pre-approved for a conventional loan.
2. Mortgages for FHA Nurses
Best suited for: nurses with low credit score
FHA mortgages are mortgages insured by the Federal Housing Administration (FHA). FHA loans are popular among home buyers with below-average credit scores and buyers of multi-unit homes.
FHA mortgages are known for their flexible approval standards:
- 3.5% down payment with 580 credit score; 10% down payment with 500 credit score
- Same low mortgage rate for all credit scores
- No interest rate adjustment for 2-4 unit homes
The FHA supports about ten percent of new mortgages.
Get pre-approved for an FHA mortgage.
3. USDA Mortgage for Nurses
Best suited for: nurses who live outside city centers
USDA mortgages are 100% mortgage loans to buy in less dense areas, including rural and suburban neighborhoods. The US Department of Agriculture supports the USDA mortgage. They offer low mortgage rates and low mortgage insurance premiums.
USDA mortgages are for home buyers of modest means who purchase a modest home.
- no down payment required
- Minimum 580 Credit Score
- Low mortgage rates compared to other mortgage types
USDA mortgages work great for nurses in rural areas and suburbs. Ninety percent of the US is a USDA-eligible locale.
Get pre-approved for a USDA mortgage.
4. VA Mortgage for Nurses
Best suited for: Nurses serving in any branch of the US military
VA mortgages are no-money-down mortgages available to active duty, military veterans and surviving spouses. The loan is guaranteed by the Department of Veterans Affairs and does not require mortgage insurance.
VA Loan:
- no down payment required
- no mortgage insurance required
- minimum 620 credit score
Some nurses are exempt from VA mortgage closing costs, including underwriting and attorney fees.
Get pre-approved for a VA loan.
Alternative “Nurse Mortgage” Websites
As a nurse, you can buy a home and get a “nurse mortgage,” but beware of fraudulent websites that tout things like “grants for nurses” and other incentives to nurses and nursing students. .
There are no government-backed mortgage programs for nurses.
TeacherNextDoor.us, for example, claims to offer cash grants to nurses. Pipeline runs the ROI website. Pipeline ROI is a lead generation company. It is not a mortgage lender and does not have a legal disclaimer on its site that is required of mortgage companies.
Another website, UseHHAF.org, advertises unique mortgage options for nurses through the Everyday Hero Housing Assistance Fund. The fund is supported by an organization called The Virtual Sports Academy, which works on community donations like GoFundMe. The group’s website is down.
A third website, Hero Home Programs, may also be fraudulent or expired. The website claims that its logo is trademarked by the US Patent and Trademark Office. Still, the USTPO lists the mark as “abandoned” and the lead-generating website doesn’t list any required mortgage company disclosures.
Other websites that promote mortgage assistance programs for nurses rename the federal programs “down payment assistance programs for nurses” and hope the public will not notice. These sites are lead generators and are rarely licensed by their respective states.
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Tips for Getting Accepted as a Staff Nurse
The most challenging aspect of a mortgage approval for a staff nurse is income verification.
Staff nurses earn inconsistent income that combines base salary and salary for extra shifts, overtime and shift differences. Thorough income documentation is an underrated mortgage hack—especially for nurses with irregular income.
Mortgage lenders recommend three income-supporting steps to get your mortgage approved faster.
Store every pay stub from every job, either digitally or on paper
Keep a constant record of your paychecks from your jobs. Store them digitally on your computer or in your email, or store printed copies of your paychecks in a folder. Paychecks certify your basic salary and the additional income you earn with each pay cycle.
Unlike other professionals, nurses may be asked to show up to two years’ pay stubs to prove bonus income, overtime income, and other irregular income. You don’t need your pay stubs to be pre-approved, but you’ll want to have them before you bid on a property.
Is your W-2 statement also available?
Keep records of your extra innings and overtime
When you work extra shifts, keep a separate file or spreadsheet that lists the hours you work and the pay you receive. Documentation of overtime helps mortgage lenders qualify your household income, which increases your maximum purchase price.
Lenders require written proof of overtime and extra pay. Your spreadsheet records and pastes provide proof of this.
Contact Human Resources for Income Documentation
Mortgage lenders worry that your overtime income will suddenly stop. A human resources representative can allay those fears with a simple explanation letter.
The letter should contain your name, job title and a note that your income — including bonus pay — is steady and consistent. You won’t need an explanation letter until you get the house.
It’s a good idea to make friendly contacts within your human resources department early on.
Get pre-approved and start your home buying journey.
Tips for Getting Accepted as a Travel Nurse
Travel nurses looking to buy their first home face different mortgage challenges than healthcare professionals and other mortgage applicants.
Travel Nurses:
- Earn variable income based on job length and location
- Take employment intervals of a few weeks to a few months
- Receive income per day that is not declared on applications
Here are three guidelines to help you get your travel nurse mortgage approved.
Keep a detailed record of your jobs and day to day accounts
Mortgage lenders struggle to calculate travel nursing income. Nurse contracts are seasonal and vary based on location and length of job. Furthermore, the time between jobs is inconsistent.
As a travel nurse and home buyer, you can help get your mortgage approved by:
- documenting your entire work history and gaps in employment
- providing offer letters, contracts and pay stubs for every job you’ve held
- Writing a detailed letter of explanation to help your lender understand your career
Travel nurses with shorter careers should include their staff nurse work history and income documentation, if applicable.
Narrow down your employment gap when you are planning to buy a home
Mortgage lenders use a standard formula to calculate income for travel nurses:
[Taxable income from the prior two years] divided by [24 months]
Lenders do not calculate income based on pending contracts or offer letters and do not proportion or average your income based on the number of months worked. Your mortgage approval only uses your average monthly income from the past two years.
Note: Per diem expenses are non-taxable income. They cannot be included in your calculation, and reimbursable travel expenses must also be excluded. Only taxable income can be used on a mortgage application.
Maximize Your Taxable Income While Being Smart
Travel nursing contracts are generally split between taxable income and non-taxable income. Taxable income is your hourly wage, plus wages earned from overtime and bonus income. Non-taxable income is reimbursement for food, lodging and incidental expenses.
Taxable income can be used to qualify for a mortgage as a nurse. Non-taxable cannot be used to qualify. Shifting some of your daily income into taxable wages may make sense – despite the additional tax burden when you know you want to buy a house. You may be eligible to buy a more expensive home.
Talk to your accountant about the impact of the change on your income.
Get pre-approved to see how much home you can afford as a nurse.
Get pre-approved for a mortgage
Mortgage lenders love to mortgage employees and travel nurses. Nurses earn good household incomes, and their profession is in demand. Government agencies also support nurse lending.
Find out how much house you can afford. Get started today with a nurse mortgage pre-approval. Results are available online.
Start your mortgage pre-approval now.
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