Top 4 Home Equity Loans for Nurses in 2023
Nurses are a significant part of society. They are considered reliable candidates for an approved mortgage loan. High wage incomes and stable employment attract lenders when assessing nurses with the purpose to lend a certain money to buy a house/an appartment. Plus, people of this occupation meet the mortgage industry’s 2-year work history requirement with a finished nursing school degree.
Lenders and bank managers specializig on issuing mortgages approve nurses with different level of credit scores. Such a system allows nurses to make little or no down payment for a future home/appartment. Nurse practitioners can purchase real estate through conventional mortgage lending and progovernment entities.
The most challenging aspect of getting a mortgage approved for a nurse is confirming the income. We together with the First Federal expert – John Massey explain the main types of mortgages and how to issue it to be a home owners.
4 best mortgage loans for nurses
There are 4 best types of low and zero down payment mortgages for nurses. The loans are progovernment and efficient in all 50 states and Washington D.C.
#1: Conventional mortgages for nurses
Appropriate for: Nurses searching for low down payment options
Conventional mortgages amount 78% of mortgages issued. Many nurses take out conventional mortgages to purchase their first homes. Conventional loans are granted by government Fannie Mae or Freddie Mac agencies. This program allows to get low down payments of 3%.
Conventional mortgages are the default mortgage programs for most real estate buyers. It has the following definite features:
- 3% down payment with the same low rates as 20% down;
- subsidized interest rates in low- and middle-income spheres;
- flexible income for nurses confirmed certificates;
- get pre-approved for a conventional loan.
#2: FHA mortgages for nurses
Appropriate for: Nurses with a reduced credit scores
FHA mortgages are secured by the Federal Housing Administration (FHA). FHA loans are widespread with home buyers with lower than average credit scores and buyers of multi-unit homes.
The FHA mortgage is popular due to its flexible approval standards. They are:
- 3.5% down payment with 580 credit score; 10% down payment with 500 credit score;
- the same low mortgage rate for all credit scores;
- no interest rate adjustment for 2-4 unit homes;
- the FHA backs approximately 10% of new mortgages.
#3: USDA mortgages for nurses
Appropriate for: Nurses who live in the suburbs
USDA mortgages are 100% real estate loans for purchasing in less-dense locations, inclusively of rural and suburbs. The US Department of Agriculture secures USDA mortgages. This department offers low rates and reduced insurance programs.
USDA mortgages are fit for people with low income to buy modest homes. The main characteristics are:
- no down payment;
- min 580 credit score;
- low mortgage rates in comparison with other mortgage programs;
- USDA mortgages are a great opportunity for nurses in rural areas and exurbs. 91% of the US is a USDA-eligible locale.
#4: VA mortgages for nurses
Appropriate for: Nurses in the US military
VA mortgages are zero down mortgages accessible to active duty, veterans of the military, and surviving spouses. Loans are insured by the Department of Veterans Affairs and never ask for mortgage insurance.
VA loans’ characteristics are:
- zero down payment;
- no mortgage insurance;
- min 620 credit score;
- some nurses are deprived of VA mortgage closing costs, including underwriting and attorney fees.
How to get pre-approved for a mortgage?
Mortgage lenders prefer issuing mortgages to both staff and travel nurses. Nurses have favorable household incomes. Their occupation is in high demand. The government agencies support and insure nurse lending, as well.
Many lenders offer to get pre-approved online. Every person may submit an application for a mortgage. And then you may visit your lender to hand over documents necessary for making a deal.