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Some may have a set of premiums that apply to all borrowers while others may consider it depending on various factors. Please note that in most cases, you must not be borrowing more than $600,000. Also, if your deposit is from a borrowed source then you won’t qualify.
As you improve your credit score and increase the size of your down payment, the mortgage rate you can qualify for will drop. This can dramatically decrease the cost of borrowing money to buy a home. If you have an opportunity to take the time to build your credit and savings, then it might make sense to wait to become a homeowner. If you’re eligible for a DPA program, then you’ll want to work with one of its participating lenders. In order to qualify for assistance, you may need to meet certain criteria, such as income limits or first-time homebuyer status . Depending on your profession, you may be eligible for private and public programs that help you with your down payment.
Getting a Mortgage as a Nurse
Schools, parks, shopping, and restaurants are all things to consider. Proximity to work could be a large factor as well, so you can spend less time commuting. There are also two different types of interest rates on mortgages, fixed rate and variable rate. Fixed rate means that the interest rate stays the same for the life of the loan. A variable rate, or adjustable rate mortgage , has an interest rate that is fixed in the beginning for a portion of the loan.
Just from that brief summary, you probably already have an idea of the type of loan that might suit you best. There are links to full descriptions of each in the bullet points where they’re listed, above. If you are serving — or have previously served — in the military , a VA loan is highly likely to suit you best. If you have had credit issues preventing you from purchasing a home and would like help getting back on track, Nurse Next Door's Fresh Start program may be able to help.
Base Income vs. Actual Income
You’re likely to be offered different mortgage rates and closing costs by each lender to which you apply. So get quotes from several and pick the one with the best deal for you. These loan types can typically be used with down payment assistance programs, which could help cover your down payment and potentially your closing costs, too. We are committed to serving American heroes and maximizing what they can save on a home. On average, our heroes save over $3,000 when they buy, sell or refinance a home with our local specialists.
With these, you typically have to choose from a shortlist of approved lenders. And some of them offer special privileges to nurses and other essential workers. We recommend six mortgage programs for nurses to explore.
What Are Your Financial Priorities?
Nurses who wish to advance their careers require higher levels of education. As any nurse can tell you, paying for nursing school isn’t cheap. Mortgage lenders can look at student debt as a risk factor they are unwilling to ignore. So, you’ve read up on the best practices for buying a home as a nurse or travel nurse and you’ve decided that buying a home is the right choice for you. Next, you’ll want to explore look for ways to reduce the cost of your mortgage. One way Nurses can reduce the costs of their mortgages is by using nursing home loan assistance programs.
This mortgage program offers loans by nationally approved lenders and typically requires a minimum credit score of 640 or higher. If your credit score is lower than 640, you may need to provide additional rent and utility payment history documentation. These programs function similarly to DPAs and often a single program offers assistance for both closing costs and the down payment. This financial assistance typically comes in similar forms to down payment aid, including grants and deferred payment loans. You’ll usually need to be a first-time homebuyer, typically defined as not having owned a home in the last three years, to be eligible.
We are here to help you get the home financing you need. With our programs, you will be able to qualify for grants, rebates, reduced lending fees, credits at closing, as well as other vendor discounts. Essentially, it comes down to how the individual lender weighs non-base salary income when determining the loan amount you qualify for. More than likely, they will weigh overtime and night shift differential pay differently than your base pay. Another thing that will need to happen before you close is a home appraisal. These are required for some types of home loans and from different banks.
“You have to think outside the box, because if 20 offers are exactly the same … what makes yours stand out? ” says Shanequa Jones, a Realtor with NB Elite Realty in Houston, Texas. One tactic Jones has used to enhance an offer is to increase your earnest money deposit from 1% to 2% of the purchase price. The downside is you’ll have to pay mortgage insurance on FHA loans because your down payment is less than 20% of the home value. This means an additional monthly cost on top of your mortgage payments. Olivia Bernard, a 24-year-old nurse in Atlanta, purchased her first home with the help of both a county grant and a grant for nurses.
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We offer home loans for nurses and all healthcare professionals. Whether you save through discounted rates or through vendor discounts, you will experience savings on your mortgage with us. At Homes for Heroes, we understand that nurses buying a home can have some challenges with shift work and overtime when it comes to loans. We also understand that a lot of nurses don’t work a typical 9-to-5 shift. Our lenders are happy to work around any challenges you may encounter and work to get you the loan you need. Sign up now to get more information from one of our mortgage specialists today.
Interest rates can also vary by the type of loan you receive. Before even meeting with a lender, however, you can gather a pretty good guess at the loan amount you can afford. There are several online mortgage calculators you can plug your information into for a close guess. You can also start to gather the documents that your lender will ask for to speed up the process. Also, you can start to work on things like building your credit score if needed. Nurses can often find especially good deals when they take advantage of healthcare-oriented mortgage and assistance programs.
One of the biggest challenges of buying your first home is knowing where to start. Being a busy nurse also doesn’t give you lot of free time to research what you need to know. Luckily, Homes for Heroes breaks down our first time home buyer program and process for nurses like you. Let’s go through what you’ll need to know and do to buy your first home.
Of course, there’s no single best home purchase loan for nurses. You can also write an explanatory letter with your application telling the lender why you think it should take into account more of your income. Note that you have to use professionals recommended by Homes for Heroes in order to benefit. Again, check other local programs to make sure this is the best option for you before you buy. Hi this is Sumie.I’m a travel RN looking for a house in Florida.I need a assistance in buying home.It is going to be my first house.
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