Mortgages for Nurses: A Guide

Home Loans for Nurses: Overview

Nurses tend to have strong incomes and stable employment, which helps meet the mortgage industry's 2-year work history requirement, especially with a completed nursing school degree.

However, the most challenging part of getting a mortgage approved for a nurse is often showing proof of income, especially for nurses working variable hours or extra shifts.

This article outlines home loans available for nurses, how to choose among available programs, and tips for verifying income.

Shop mortgage lenders now to find companies experienced with nursing income verification.

4 Popular Mortgage Loans for Nurses

There are four main low and no-down-payment mortgages available to nurses. No special applications are required.

1. Conventional Mortgages For Nurses

Popular Among: Nurses looking for low down payment options

Conventional mortgages comprise 55 percent of all mortgages, and many nurses use conventional loans to buy their first home. Fannie Mae and Freddie Mac back conventional loans and allow for down payments as low as 3 percent.

Conventional loans are often the default choice for home buyers, including nurses:

• 3% down payment with competitive rates similar to those with 20% down
• Subsidized interest rates in low- and middle-income areas
• Flexible income guidelines for nurses with employment contracts

Use our home affordability calculator to see how much you can afford based on your nursing income.

2. FHA Mortgages For Nurses

Popular Among: Nurses with lower credit scores

FHA mortgages are loans insured by the Federal Housing Administration (FHA). FHA loans are popular among home buyers with below-average credit scores and those buying multi-unit homes.

FHA loans are known for their more lenient approval standards:

• 3.5% down payment with a credit score as low as 580
• The same low mortgage rate regardless of credit score
• No interest rate increase for 2-4 unit properties

FHA loans account for about 10 percent of new mortgages.

3. USDA Mortgages For Nurses

Popular Among: Nurses working or living outside of city centers

USDA mortgages are no-money-down loans for homes in rural and suburban areas. The U.S. Department of Agriculture backs them and offers competitive rates with lower mortgage insurance premiums.

USDA loans are aimed at moderate-income buyers purchasing modest homes:

• No down payment required
• Minimum credit score of 640
• Low interest rates compared to other mortgage types

USDA mortgages are an excellent fit for nurses in rural or less dense areas.

4. VA Mortgages For Nurses

Popular Among: Nurses who have served in the U.S. military

VA mortgages are no-down-payment loans for active-duty military, veterans, and surviving spouses. The Department of Veterans Affairs guarantees VA loan which do not require mortgage insurance.

VA loans come with many benefits:

• No down payment needed
• No mortgage insurance
• Minimum credit score of 620

Also, some nurses may be exempted from certain closing costs, including underwriting and attorney fees.

Alternative "Nurse Mortgage" Websites

There are no official government-backed mortgage programs specifically for nurses so be cautious of websites that advertise "nurse-specific" mortgage grants or special deals.

Many of these sites are lead generation machines or otherwise publish misleading information.

For example, websites like TeacherNextDoor.us claim to offer special grants for nurses, but they are lead generation companies and not actual mortgage lenders. Sites like these often lack the legal disclaimers required for licensed lenders.

Another example is UseHHAF.org, which advertises mortgage options for nurses via the Everyday Hero Housing Assistance Fund. The group is backed by donations but does not appear to be an authorized mortgage provider.

A third website, Hero Home Programs, also appears to be problematic. The site claims its trademark is registered with the U.S. Patent and Trademark Office, but records show the mark as "abandoned." Additionally, it lacks the necessary mortgage company disclosures.

Many other sites repackage existing federal programs as "nurse-specific down payment assistance" and are run by unlicensed lead generators. Always verify the legitimacy of a site before providing personal information.

The government does not offer special nurse lending.

Tips for Getting Approved as a Staff Nurse

The most challenging part of getting a mortgage as a staff nurse is income verification.

Staff nurses often earn a combination of base pay, overtime, and bonuses. Proper documentation of nursing income becomes critical for your approval.

Here are some tips to streamline the process and get approved faster.

Store every pay stub from every job digitally or on paper

Keep an ongoing record of your pay stubs from every job. Digital copies stored on your computer or email work best, but paper copies in a folder are also effective. Your pay stubs show both your base salary and any additional income earned through overtime or shift differentials.

Unlike other professions, nurses may be asked to provide up to two years of pay stubs to verify irregular income. While pay stubs aren't needed for pre-approval, they will be essential when you're ready to bid on a property.

Make sure to have your W-2 statements available as well.

Keep a record of your extra shifts and overtime

When you work extra shifts, document your hours worked and the pay you received in a spreadsheet or file. This documentation helps mortgage lenders calculate your total income and can raise your approved loan amount.

Lenders need proof of any overtime or extra pay. A well-maintained record, along with your pay stubs, provides the necessary documentation.

Make a contact in human resources for income documentation

Lenders may worry that your overtime or bonus income isn't consistent. A simple Letter of Explanation from your human resources department can help clarify your earnings and ease concerns.

This letter should confirm your name, job title, and note that your income—including any bonus pay—is stable. You won't need this letter until you've found a home, but it's a good idea to establish a relationship with HR early.

Tips for Getting Approved as a Travel Nurse

Travel nurses face unique challenges when applying for a mortgage compared to staff nurses and other professionals.

Here are some common obstacles and how to overcome them:

• Variable income based on contract length and location
• Employment gaps ranging from weeks to months
• Per diem income that doesn't show up on tax returns

Here are some steps travel nurses can take to get approved for a mortgage:

Keep detailed records of your jobs and per diem accounts

Mortgage lenders often struggle to calculate income for travel nurses due to the seasonal nature of their work. Contracts can vary in length, and there may be gaps between assignments.

To help your lender, make sure you:

1. Keep a detailed log of all assignments including dates, locations, and pay
2. Maintain records of all per diem payments and reimbursements
3. Save copies of all contracts and amendments

If you've worked as a staff nurse before, include those records to help demonstrate a more consistent work history.

Shorten your employment gaps before applying for a mortgage

Lenders calculate income for travel nurses based on taxable income from the last two years, divided by 24 months. Pending contracts and future job offers aren't considered, so the more months you've worked in the past two years, the higher your average income will be.

Note: Per diem expenses are non-taxable and can't be used for mortgage qualification. Only taxable income counts towards your application.

Maximize your taxable income when appropriate

Travel nurses often receive a mix of taxable income (wages, bonuses) and non-taxable income (reimbursements for meals, housing, and other expenses).

Since only taxable income can be used to qualify for a mortgage, it might make sense to shift some of your per diem payments to taxable wages if you're planning to buy a home. This can increase your purchasing power, even if it results in a higher tax bill.

Consult your accountant before making this change to understand the potential impact on your taxes and home-buying options.

Get Pre-Approved For A Mortgage

Mortgage lenders are eager to work with nurses, whether staff or travel. Nurses typically have solid incomes, and their profession is in high demand. Plus, government agencies offer strong support for nurse mortgage lending.