Key Takeaways:
- Special nurse home loans can help registered nurses secure a mortgage with as low as 0% down and no private mortgage insurance.
- An RN mortgage comes with higher loan limits and comparable interest rates to a conventional home loan.
- Registered nurses can benefit from relaxed underwriting guidelines that make it easier to qualify.
The most recent data from the Bureau of Labor Statistics (BLS) shows there are more than 3 million employed registered nurses in the United States. The RN profession encompasses a wide variety of healthcare settings and jobs, including staff nurses, travel nurses and many non-clinical nursing roles.
The complexity of the nursing field extends into how you get paid, with many opportunities to earn extra money as a nurse. While this can be great for your finances, it can make getting a mortgage more complicated as you might have variable income from gaps in employment due to traveling or picking up per diem work and extra shifts.
And that’s only the tip of the iceberg when considering the many home-buying barriers that borrowers face when applying for conventional loans. You’ll also need to save for a large down payment and plan for strict underwriting criteria, both of which could delay your dreams of owning a home.
Fortunately, some mortgage lenders recognize the unique landscape of the nursing profession and have extended their medical professional mortgage programs to include RNs. Read on to learn more about how you can benefit from an RN mortgage.
How can RNs benefit from using a nurse home loan program?
An RN mortgage can open the door to low down payment options that are normally exclusive to certain healthcare professionals, such as nurse practitioners and certified registered nurse anesthetists. Nurse home loans fall into a broader category often called a “physician mortgage” or “early professional home loan”.
Registered nurses can benefit from an RN mortgage by:
- Getting up to 100% financing, meaning no up-front down payment.
- Not being required to carry private mortgage insurance (PMI) regardless of your down payment amount.
- Accessing higher loan limits well-beyond conventional limits without increasing your interest rate.
- Qualifying for a higher loan amount due to relaxed underwriting guidelines that exclude your nursing student debt or use a modified calculation for your debt-to-income ratio (DTI).
If you’re a new RN or a travel RN, it can be even more challenging to get a conventional mortgage considering you might not have the work history or consistent income history needed to qualify. Therefore, you could benefit greatly from exploring nurse home loans that cater to your situation.
Get Quotes for Your Doctor Mortgage
What mortgage product would you like a quote for?
Step 1: Job
Step 2: Home
Step 3: Your Info
What is Your Occupation Status Currently?
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What most closely represents the price range of the house you’re searching for?
What is your preferred down payment?
What stage are you at in the home buying process?
How soon do you hope to secure a mortgage approval?
How many banks would you like quotes from?
Have you experienced any bankruptcies or short sales?
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3 Lenders offering an RN mortgage
Registered nurses aren’t typically included in many medical professional mortgage programs. However, some select lenders extend their eligibility to RNs.
We’ve included nurse home loans below, as well as loan officer contact information to help make your search easier. Keep in mind that each lender has its own requirements and ideal borrower profile, including minimum credit score, employment history and maximum DTI.
1. First Merchants Bank (formerly Level One Bank)
Registered nurses in Indiana, Michigan and Ohio can apply for a professional home loan with First Merchants Bank. Although it isn’t as generous as its physician mortgage program, RNs can qualify for up to $350,000 in home financing with just 3% down and no PMI.
Another big benefit of this program is that you can close on a new home up to 60 days before starting a new nursing position. You’ll just need an acceptable employment contract as proof of future income.
States available: IN, MI, OH
Contact: Email Joe Saleh or call (313) 497-5991.
2. Flagstar Bank
Flagstar Bank offers one of the most inclusive professional home loan programs. Registered nurses in all 50 states can qualify for up to $1 million with no money down. Alternatively, you can provide a 5% down payment to access up to $1.5 million in financing.
However, this RN mortgage program is limited to adjustable-rate mortgage (ARM) options. Additionally, you must be within 10 years or less from starting your nursing career.
States available: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY
Contact: Email Tish Kumar or call (916) 280-0299.
3. U.S. Bank
Although U.S. Bank’s physician mortgage is exclusive to medical doctors, there’s an alternative home loan solution that might benefit nurses, depending on your situation.
If you’re willing to provide a 10% down payment, you might be able to use an 80-10-10 loan with U.S. Bank. This type of piggyback loan creates a first mortgage at 80% of your home purchase price, as well as a second mortgage at 10%.
While this isn’t the right solution for every borrower, it can give you the option to keep a low down payment and sidestep PMI in the process.
States available: AL, AK, AZ, CA, CO, DC, ID, IL, MA, MD, MT, MI, MN, MS, NE, NV, ND, NM, NY, NJ, OK, OR, RI, SD, TX, UT, WA, WY, WI
Contact: Email Jonathan or call (916) 602-4080.
Should you use a nurse home loan for your next purchase or refinance?
An RN mortgage can give you access to home financing with no down payment and no PMI. But they can be hard to come by as many physician mortgage programs haven’t extended eligibility requirements to include registered nurses at this time.
Therefore, we encourage you to reach out to the loan officers listed above or fill out the form at the bottom to start receiving quotes for nurse home loans.
You might also benefit from searching various homeowner assistance programs designed for nurses and other first responders. This might include grants, down payment assistance or help with closing costs through programs like:
If you happen to be married to someone who qualifies for other physician mortgage programs (e.g. doctor, dentist, lawyer, etc.), then check out our profession-based resources to learn more. Additionally, you might benefit from exploring other mortgage options, such as a VA loan, FHA loan or USDA loan.
Ultimately, you’ll want to use whatever homeownership program is most advantageous to your household.
Get Quotes for Your Doctor Mortgage
What mortgage product would you like a quote for?
Step 1: Job
Step 2: Home
Step 3: Your Info
What is Your Occupation Status Currently?
NEXT
What most closely represents the price range of the house you’re searching for?
What is your preferred down payment?
What stage are you at in the home buying process?
How soon do you hope to secure a mortgage approval?
How many banks would you like quotes from?
Have you experienced any bankruptcies or short sales?
NEXT