Being a nurse comes with its fair share of benefits; good pay, flexible working hours, job security, opportunity to work in different states and high job satisfaction. Nurses can also rapidly move up ranks depending on their specialization and skill demands, allowing them to obtain higher pay packages and better positions within the hospital industry.
Because of the good pay and stable income, one of the first things that come to mind is buying a house. People generally save up meticulously to buy their own home, and so is the case with nurses, further accelerated by the availability of home buying programs for nurses. However, like every other person that is in line to buy a house, nurses also need to be subjected to many kinds of background checks in order to be eligible for a home loan.
Hurdles in Getting Approved for Home Loans from Regular Lenders
Getting approved for a home loan requires a stable, well-paying job, giving the home loan lender a sense of security that the person will be able to make its monthly payments on time. While nurses certainly have a stable job, the Achilles heel of getting approved is their flexible work schedules that may not show their job as ‘stable’. Most regular home loan lenders, those who serve all kinds of customers, often have a pre-defined set of checks in place irrespective of what kind of job an individual does. For example, an individual may be making six figures a year from freelancing or contract-based job, but he/she may have trouble getting approved for home loan because that person does not have a ‘stable’ source of income, that is a fixed amount of money he/she receives every month.
The same issue doubles back to nurses too. It does not matter if the nurse is getting a solid pay and has a highly stable job; if the payments come in irregularly, loan lenders see this in a sense of doubt. This may affect their approval process.
Home Buying Programs for Nurses
In order to tackle these kinds of issues, there are many specialized lenders on the market that deal with loan and home buying programs for nurses. In fact, some of these lenders exist only to provide mortgage and loan services to nurses, as they understand the working processes of a nurse much better than general loan lenders. If you are a nurse looking for a suitable way to get approved for a home loan, your best bet is to get in touch with those who specialize in home loans for nurses and medical practitioners.
Even then, there comes a tiny hurdle that may differ based on what your lender considers as ‘base pay’. You see, most of the lenders consider the base pay per hour as the selection point for approving nurses for home loans. Bonus pay or extra payment, even if on a regular basis, are often ignored. For example, if your base pay is $30/hour and you make an additional $20-$40/hour every day from side jobs or extra jobs, the latter is often not taken into consideration, which may affect the required credit score calculation and base income calculation.
Tackling the Issue of ‘Base Pay’ for Nurses
To tackle these types of issues, many lenders have put in a safety net in place, that allows them to consider additional compensations but only if the nurse has been receiving this type of pay for more than 2 years. That means if you make extra $20-$40/hour apart from base pay, and have been making the same amount or more since the past two years or more, then lenders will consider this pay under your total income per month, greatly enhancing your approval process.
But again, why is it necessary to show all your sources of income? The approval process is not an issue for nurse with a stable job; the issue is how much funds are approved for home loans. Nurses with nominal income will get nominal funds approved for home loans, while those with high incomes will get higher funds. For example, the amount of money approved ranges from $50,000 to $500,000 or even more, depending on what your income is.
Assistance on Buying Homes for Nurses
There are many kinds of home buying programs available for nurses. If you are interested in such programs, Nurse Loan Programs offers a highly specialized program for nurses nationwide. Many states offer their own set of home loan programs for nurses that can help you save money when buying a home. These programs aim to compensate qualified nurses and medical practitioners. You can check if you are eligible for such programs, as every one of them has a specific set of criteria that you need to fulfill.