You’re thinking about buying a home, or perhaps you’ve already found your dream home, either way, your nursing career can help you substantially with unique mortgage programs for nurses. You read that correctly, their exclusive mortgage loans built for nurse practitioners. These nurse loan programs can lower your costs, allow you to purchase more home and increase your buying power.
How do I get a nurse’s mortgage?
One of the reasons a nurse’s mortgage can seem complicated or be difficult to obtain the right loan for the right house is because of the many types of pay included for most nurses and nurse practitioners. Nurse wages can be subdivided into several kinds of pay, including shift hours, overtime and shift differential. For example, you may have a fixed salary but flexible shift patterns and working overtime will affect your take-home amount which makes it difficult for the lender to determine your exact income. If you work a lot of overtime and this overtime is a sure thing in your schedule, it’s not always considered reliable income from lenders because it is not guaranteed in the same way a salary is. For this reason, nurse practitioners may make enough money to buy their dream home but don’t necessarily qualify.
For a full-time nurse, all of the base pay is considered, but all the other types of payments can be considered if they have a minimum of two-year history receiving the payment.
In fact, many lenders (unless they specialize in nurse mortgage options) would never understand the complexities involved. That’s why speaking to a lender that provides nurse loan programs is the best option to start with. They will understand your requirements and provide you with the best solutions and can help you find the best way possible.
Tips to use your pay to qualify for your mortgage
- Start keeping a copy of your pay stubs. You’ll need a copy from the last 2-3 months when you apply for a loan.
- Find your last pay stub from the previous year (it shows the year total of your various income types)
- Request a letter from your employer stating your shift differentials and overtime.
- If you have changed employers find all your final pay stub from all your previous employers.
All this might seem overwhelming, but you’ll be glad that you did your prep work when you go to apply for a mortgage.
What mortgage options are available for nurses?
First and foremost, any lender wants to see that you have a stable regular income to show so that you can pay back your loan. Mortgages are available for those who are first time buyers or who are refinancing. If you are looking for a suitable way to get the loan approved, get in touch with a lender who specializes in providing mortgage loans for nurse practitioners.
What is the difference between actual pay and base pay?
The base pay is what the nurses get paid as a minimum salary from the organization they are working for. You can use base nursing pay immediately after starting work, even if you’re a new grad. But a few lenders require you to be in your work for two years prior to using that income for a mortgage.
Actual pay includes the other side of your income such as bonuses’ from extra shifts, overtime shifts, part-time pay, etc. Being able to use your extra pay can qualify you for a bigger loan an the opportunity to buy a bigger house. The lenders consider it as a variable income in other occupations. If you have just started making that extra pay, though you will not be able to use it to qualify. The best way to get the best assessment of your income is to request a pre-approval from the lender.
Will lenders consider overtime work?
For most of the lenders, they consider only 50-80% of your overtime income which can lower your borrowing power. Nurses, on the other hand, are essential service workers so only some loan providers consider the whole overtime income.
Not all banks understand that nurses do shift work and earn shift penalties so lender choice is essential!
Most lenders will need you to provide:
- An employment letter confirming that you have been receiving overtime income regularly for the past one or two years, depending on the lender.
- Two of your most recent payslips.
Why don’t nurses qualify for doctor home loan discounts?
The main reason nurse home loans don’t offer doctor home loan discounts is because of the way lenders view doctors. Although they’re both technically in the same industry and are considered low-risk professions, doctors are considered highly profitable clients by lenders. This is mainly because, statistically, they have one of the lowest default rates of any profession. Lenders are fighting to get these clients so they offer incredible discounts.
However, this doesn’t mean that nurses aren’t considered good clients. As long as you work on without any gaps and provide a listing of your stable income, the better the deal you are likely to get. With the help of Nurse Home Loan Programs, you can easily talk to a specialist and explore your financing options with an added benefit of zero down payment for loan amounts up to $850,000.
Do nurses get financial help with mortgages?
If you already have a mortgage then it’s possible to apply for mortgage assistance, though it may involve switching to another provider such as the one who has expertise and experience in providing mortgages and loans. There are specialist loan programs who will help you give free pre-qualifications and pre-approvals. Again these firms can guide you about the favorable rates that will be suitable, as well as other options that might be available to you.
Applying with the right lender is the key!
Not all the lenders that provide home loans are equal. So finding the right provider is a matter of time and research. If you are looking for a suitable way to get approved for a home loan, your best bet is to get in touch with nurse loan programs. We have many kinds of home buying programs available for nurses nationwide that can help you save money when buying a home.