Can nurses buy a first home with a low down payment?
Yes. Lumen Mortgage's nurse home loan lets registered nurses, nurse practitioners, CRNAs and clinical nurse specialists buy with as little as 3% down with no PMI on loans up to $2M, or about 10% down (89.99% financing) on loans up to $3M. It accepts an offer letter when your start date is up to 180 days after closing, and requires a 700 credit score.
Best for: RNs, NPs, CRNAs and CNSs buying a first home who want to keep their savings.
Nurses are some of the most stable borrowers a lender sees, yet first-time buyers in nursing often assume they need 20% down or two years at the same hospital. Neither is true. This guide walks through how a nurse home loan works, who qualifies, how offer letters, travel contracts and student loans are handled, and the steps to take from pre-approval to closing in Oregon or California.
What Is a Nurse Home Loan?
A nurse home loan is a mortgage written for nursing careers. Our program offers: - Loans up to $2,000,000: as little as 3% down (97% financing) - Loans over $2,000,000 up to $3,000,000: about 10% down (89.99% financing) - No mortgage insurance on either tier, even at 3% down - Fixed or adjustable rates: 15- or 30-year fixed, or a 5/6, 7/6 or 10/6 SOFR ARM - Offer-letter qualifying when your start date is up to 180 days after closing For a first-time buyer, skipping mortgage insurance can make a real difference to the monthly payment, and a smaller down payment means you can buy sooner and keep more cash in savings. Closing costs and prepaid items still apply, so plan for those in your budget. To see exactly what skipping mortgage insurance is worth at your price and down payment, try our nurse home loan calculator. It shows your payment next to a conventional loan with PMI, plus your monthly and yearly savings.
Who Qualifies
The program is for: - Registered nurses (RN) - Nurse practitioners (NP) - Certified registered nurse anesthetists (CRNA) - Clinical nurse specialists (CNS) At least one borrower needs an eligible degree and must qualify using income from that profession. A spouse or partner on the loan can work in any field, and their income can help you qualify. LPNs/LVNs, CNAs, unlicensed nursing students and similar roles aren't eligible. If that's you, our first-time buyer programs include other low-down-payment options. If you're a CRNA with a DNP or DNAP, you may also qualify for our 0%-down physician loans. Nurse practitioners may have physician-program options too. We'll compare them side by side with the nurse program.
How Much House Can You Afford?
Two numbers drive your budget: your credit score and your debt-to-income ratio (DTI). - Credit: every borrower needs at least a 700 score. Nontraditional credit, like rent or utility history without a credit report, isn't accepted. - DTI: your total monthly debts, including the new mortgage payment, can be up to 50% of your gross monthly income. Your mortgage payment includes principal, interest, property taxes and homeowners insurance, plus HOA dues if the home has them. Run your numbers in our debt-to-income calculator to see how much room you have before you start touring homes.
Buying Before You Start a New Job
Starting your first nursing job, or moving to a new hospital? You don't have to wait for pay stubs. You can qualify on a signed offer letter or employment contract when your start date is up to 180 days after closing. The offer letter or contract must: - Show your job title, start date and pay rate - Cover at least 12 months - Have no contingencies other than licensing or standard administrative items, like a background check You'll also need reserves for each month between closing and your start date. Choose your start date in our nurse home loan calculator to estimate how much you'll need. Start the conversation with us as soon as your offer is signed so the timing of your offer, start date and closing all line up.
Travel, Contract and Self-Employed Nurses
Travel and contract nursing income can work, but it's documented differently than a staff position. - Contract, 1099 and travel nurses may qualify with guaranteed pay or a documented contract history. - A contract that hasn't started yet needs to begin within 60 days, and you'll need reserves. - Self-employed nurses need at least one year of personal and business tax returns showing 12 months of self-employment. Some income can't be used to qualify: asset depletion, expense-account income, retained earnings, temporary income and anything that can't be verified. Bring your contracts and pay records to your first conversation and we'll tell you what counts. If your income is mostly 1099, compare our 1099 income loans too.
How Student Loans Are Counted
Student loans are counted in your DTI. We use the monthly payment on your credit report. If no payment reports, for example because your loans are deferred, we use one of these: - 0.5% of the balance - A fully amortized payment - Your documented repayment amount On $60,000 of deferred student debt, 0.5% works out to $300 a month. Many standard loan programs count the same balance at 1%, or $600 a month. For more detail, read how our healthcare loan programs treat student loans.
What Kind of Home You Can Buy
Eligible: - Single-family homes - PUDs (planned unit developments) - Warrantable condos - A 2–4 unit home you'll live in - A one-unit second home Not eligible: manufactured or factory-built homes, co-ops, condotels, non-warrantable condos, leasehold properties, mixed-use or commercially zoned properties, agricultural properties or hobby farms, timeshares, vacant land, deed- or resale-restricted homes, and auction purchases. The loan is for purchases and rate/term refinances. It can't be used for cash-out refinances, construction-to-permanent loans, escrow holdbacks or investment properties. Every loan is manually underwritten and needs a full appraisal; appraisal waivers aren't available.
Lowering Your Payment in the First Years
On a 30-year fixed purchase, you can use a 2-1 or 1-0 temporary buydown. A buydown lowers your rate for the first year or two, which can help while you're settling into a new role or covering the costs of moving in. It's usually funded with a seller or builder credit, so ask your agent about negotiating one. Our nurse home loan calculator shows your payment in each buydown year and what the buydown costs.
Your Step-by-Step Plan
1. Check your credit. Make sure every borrower is at 700 or above. 2. Run your numbers. Use our nurse home loan calculator to estimate your payment, your savings over a conventional loan with PMI and any reserves you'll need. 3. Gather documents. Pay stubs, W-2s, or your signed offer letter or contract; travel nurse contracts and pay history; recent bank statements; and student loan statements. 4. Get pre-approved. We'll calculate your DTI, confirm your student loan payment and set your price range. 5. Line up your timing. If you're starting a new job, map your start date against your target closing date. 6. Find an agent and shop. Look for eligible property types and make offers with your pre-approval in hand. 7. Lock your rate and close. Choose fixed or adjustable, consider a buydown, and plan for closing costs and reserves.
Citizenship and Residency
U.S. citizens, permanent residents with a valid green card or proof of renewal, and eligible non-permanent residents with a valid Employment Authorization Document (EAD) can qualify.
See Your 3%-Down, No-PMI Payment
Nurse Home Loan Calculator
See your nurse home loan payment with as little as 3% down and no mortgage insurance, side by side with a conventional loan carrying PMI at the same rate.
No-PMI savings
Your monthly and yearly savings versus a conventional loan with estimated mortgage insurance at the same down payment.
2-1 & 1-0 buydowns
See the lower payment in each buydown year on a 30-year fixed purchase, plus the total the buydown costs.
Offer-letter reserves
Pick your job start date to estimate the reserves you'll need between closing and your first day.
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Frequently Asked Questions
How much do nurses need to put down on a first home?
Which nurses qualify for a nurse home loan?
Can I buy a home before my nursing job starts?
Can travel nurses qualify?
How are student loans counted for nurses?
What credit score do I need?
How can I estimate my nurse home loan payment?
Ready to Buy Your First Home?
We'll walk you through every program you qualify for — FHA, Conventional, USDA, and Oregon/California first-time buyer assistance.
Bottom Line
You've spent your career taking care of other people. Buying a first home shouldn't mean waiting years to save 20%. Estimate your payment and savings with our nurse home loan calculator, see full program details on our nurse home loan page, then call 503-966-9255 or email info@lumenmortgage.com to get pre-approved. Program terms are subject to change and to credit, income, asset and property approval. Lumen Mortgage, NMLS #1498678.
