The sad truth! It’s hard to find a home loan program with no down payment for nurses especially. The down payment is how mortgage brokers and money lenders deal with the risk of giving someone a huge sum of money to buy a home hoping that they will pay it back over the years. And to add further, many home loan lenders see a no down payment home loan as a huge risk that they are willing to take. Charging some amount of it ensures that they’ll get at least some of their money back.
Fortunately, there are home loans for nurses that don’t cost very much upfront, and many of these include no down payment loans. If you are in the healthcare profession and looking for Down Payment Assistance for Nurses, Nurse Loan Programs is the best bet. Nurse loan programs have a lot of benefits for you to consider, no private mortgage insurance, low to zero down payment options, and of course pre-qualifications and pre-approvals.
Why are nurses treated differently when taking a home loan?
It can be a challenge for nurses to get a mortgage loan because being in a healthcare profession they have to deal with shifting schedules, overtime, employment gaps, night differentials, and more unique circumstances. Mortgage lenders are only up for consistency, those who work on a fixed shift basis, the regular 9-5 schedule, and with predictable income, are never in-between jobs and get fixed compensation every month. That means they prefer stable income spread across a historical length of time.
Still, homeownership for nurses is definitely attainable, and Nurse Loan Programs can help.
And if you’re a travel nurse, it can be harder because you tend to change employers and it’s normal to have employment gaps. You may also have no-taxable income and might be unsure if it will qualify for a home loan or not.
What exactly is down payment assistance for nurses?
Down payment assistance programs are programs in which the lender or the third party agrees to pay for a portion of the down payment, either by nullifying it completely or with a low-interest loan that you have to pay off until you are finished paying off your mortgage.
The lenders may require two years of verifiable income to approve your mortgage loan. This can be a barrier for the nurses who are into traveling, but there are ways you can simply acquire loans by dealing with the best service provider. Just be sure to track when you worked, moved and what were the gaps in between jobs. This is a great way of keeping records and will eventually help in speeding the lending process in a long way.
Although almost all lenders will require two years of employment history, if you don’t know, your schooling can also be counted by some as an added advantage. The lenders or banks will require the offer letter stating your expected hours and pay, so the good news is that you are eligible for buying a home if you are still working towards your nursing degree. And if you are a travel nurse, you can show the time spent in school, that may help with the process along.
Benefits of Down Payment assistance with Nurse Loan programs:
- Helps home buyers purchase a home sooner
It immediately builds your buying power and can help you take action on a purchase more quickly. With the help of down payment assistance, homebuyers are accustomed to a cash cushion so that they can use their savings for other unexpected emergencies or for further home maintenance projects.
- Buying a home gets as affordable as possible
Whether you have just started your career in nursing or you’re an experienced one, nurses of all income levels might face a housing crisis up close because of their income being seen as unstable. If you want to ensure your purchase is an affordable and sustainable one you can simply take the help of home buying programs so that you can take advantage of record-low interest rates.
- Provides valuable homeownership education
In order to qualify for assistance programs, it typically covers the logistics and steps of buying a home as well as financing basis, homeownership responsibilities and contract obligations. With assistance and valuable education helps prepare buyers for the home buying process and sets you up for long-term homeownership success.
Why is Income verification important?
Even if you have a great salary and with help from an assistance program, buying a home can be expensive. If you don’t have cash for a down payment, there are many options where there are different criteria for borrowing. Furthermore, those criteria will differ from banks to private lenders.
Generally, though, if you’re prepared to apply for a mortgage, you probably meet the criteria for a personal loan. Lenders look at the following to determine whether you are eligible for a loan:
- Monthly income
- Credit score
- Credit history
- Employment status
- Job history
You can make a lot of money as a nurse, but it’s also important to consider the structure of your pay and what it means for your finances and home purchase. What does the differential for nights and weekends mean- and how will that affect your overall pay? How do overtime and bonus shifts work into the picture? Understanding all these factors can help you determine how much of a loan you will qualify for and how much it takes to make mortgage payments for the years to come.
Lenders may or may not take more than your base pay into consideration when they determine how large a mortgage you can qualify. In other words, they also calculate overtime pay differently than they calculate base pay.
Search for Down Payment Assistance Programs
You can simply search for the lenders and get to know about programs in your market, you will find a good lender whose interests will align with yours. Do your homework on assistance programs before you put a step forward. It will help you understand all your mortgage options and what you may be able to afford.