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How Nurses Can Get Over The Mortgage Approval Hurdle

Registered nurses have a higher mean hourly wage that is higher than average, but even that cannot guarantee them approval when applying for a mortgage. The complex financial situation of nurses often turn off lenders who prefer borrowers with a steady income. This is because nurses seem “unstable” to lenders owing to employment gaps and overtime.

 

Getting A Mortgage As A Staff Nurse

Staff nurses may use their base pay to get a mortgage, but this base typically does not show the full income as most nurses work past their shift. The various other income types, such as overtime and shift differential, may be considered by lenders if the borrower has at least a two-year history of receiving that kind of pay. This is because lenders tend to make their decisions only by looking at the base pay when determining the size of the mortgage.

 

Some lenders, however, might consider night shift differential pay as they do overtime and bonuses. But borrowers will likely have to show that they are receiving these incomes for the past 12 to 24 months.

 

Getting A Mortgage As A Travel Nurse

Travel nurses may have a harder time applying for a mortgage owing to unstable income. Due to the demands of the job, lenders may see them as job hoppers as short contracts compel them to jump from one agency to another.

 

Nurses who travel, change employers a lot, or work per diem may need to explain their employment situation to lenders. This can be done by requesting a letter to their employer asking them to verify their situation and past work and relaying this to the lender. The borrower may also want to show proof of two years of employment. Pay stubs will also help the borrower’s cause as these will help the lender determine one’s true income.

 

New Grads Planning For A Mortgage

 

Those fresh off nursing school may not have other assets, so they are faced with two options: they can use their base pay to purchase a smaller cheaper home or they can wait until they are financially qualified for a larger home.

 

Assistance Programs

Nurses may also seek assistance programs if they think that their pay or employment gaps affect their chances of getting a mortgage.

 

Nurse Next Door

Housing grants of up to $6,000.00 are available to all healthcare employees, including nurses, medical staff, and doctors. Subject to availability, borrowers will receive a minimum of $1,000.00 non-repayable grant to be used toward the purchase of a home. In addition to the grant, one may also be eligible for down payment assistance of up to $10,681.00.

 

Everyday Hero Housing Assistance Fund

The EHHAF assists police, firefighters, teachers, social workers, and medical professionals by providing them with free gift funds to help cover closing costs when purchasing a home.

 

Home For Heroes

This organization is the largest network of affiliate mortgage specialists committed to helping firefighters, law enforcers, and healthcare professionals. Purchasing a home through Home for Heroes’ network of real estate professionals will result in a check for 0.7% of the home purchase price after closing. The average savings for Homes for Heroes borrowers is $2,400.

 

Mortgages For Champions

Mortgages for Champions was created for law enforcement, government, medical, and military professionals. Its discount programs waive all of closing costs, which can often surpass $1,700. These lender closing costs are removed by the program, with no application fee, processing fee, underwriting fee, and commitment fee.

 

FHA Home Loans

A popular loan option, approximately one in five US buyers have used an FHA loan to fund their purchase. FHA loans allow buyers to make down payments of only 3.5% and they have lenient underwriting standards and rates. Moreover, most FHA lenders accept borrower’s credit scores as low as 580.

 

USDA Loans

This loan is backed by the US Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA mortgage is available to borrowers with low-to-average income. It offers zero down payment products, has low mortgage insurance fees, and lenient credit score requirements.

 

Make The Best Decision

Planning to take out a mortgage? Call (949) 284-2700 to receive expert advice from a Loanbox Mortgage consultant or visit Loanbox Mortgage for a free quote.

A Canadian native, Noelle attended Ryerson Polytechnic Institute in Toronto where she obtained a Bachelor of Technology in Architectural Science. In 1990 she moved to Southern California and got her start in the mortgage industry. In 1994 she obtained her Mortgage Broker License and has since managed mortgage and private lending companies.
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