Best Home Loans for Healthcare Workers

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Contributor, Benzinga
November 7, 2023

Did you know the dream of owning a home can be easier to accomplish depending on which profession you are in? This can be especially true when looking at home loans for healthcare workers

Doctors, nurses, emergency medical technicians (EMTs) and other medical professionals may be eligible for home loan programs specifically designed to help healthcare professionals buy a home. These programs have favorable terms, special perks and lower fees and can help you secure a loan. Read on to learn more about a few loan providers and programs available to healthcare professionals that might be ideal for your situation.

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Best Home Loans for Healthcare Workers

Best Home Loans for Healthcare Workers

Many lenders offer special programs to provide great benefits on mortgages for healthcare workers. The companies listed below offer traditional financing and loans that offer a lower down payment like Federal Housing Administration (FHA), Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans. Some also offer loans for unique situations, typically called non-qualified mortgage (QM) loans.

All of these can be beneficial for healthcare workers who qualify, and your situation will dictate which loan gives the best terms. It’s always best to compare your options, so evaluating these lending institutions and what they offer is a great place to start.

1. Best Overall: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions can provide a wide selection of mortgages for healthcare workers. Angel Oak is notable as a home loan provider because it provides both standard financing options for healthcare workers as well as specialized loans with varying criteria. While the company offers standard financing choices, it specializes in nontraditional lending with non-QM loans.

Non-QM loans include those for higher-value homes, investment loans and loans that can be obtained after a recent bankruptcy. If you are a healthcare professional who has financial mistakes on your record, Angel Oak may be able to provide you with a more flexible loan option that takes your unique income and debt obligations into account. 

Pros

  • Considers unique borrower situations
  • Quick loan approval process
  • Offers competitive interest rates

Cons

  • Stricter qualification requirements
  • Higher interest rates and fees

2. Best for Bank Statements Only: CrossCountry Mortgage

Much like Angel Oak, CrossCountry is a full-service lender offering both traditional and non-QM loans for healthcare workers. CrossCountry offers specialized programs that can serve the needs of almost anyone seeking financing, and it has dedicated loan officers to walk you through your options.

In addition to traditional financing options, CrossCountry Mortgage offers programs for investors purchasing vacation homes. CrossCountry Mortgage can also help you find down payment assistance if you may not be approved through traditional underwriting. Jumbo loans are also available with flexible qualification criteria. 

Pros

  • Wide range of mortgage options
  • Competitive interest rates and flexible terms
  • Dedicated mortgage specialists 

Cons

  • Limited information available about specific mortgage products and rates on their website

3. Best for a Variety of Options: New American Funding

Another full-service lender, New American Funding has a couple of unique options that provide advantages over other lending institutions.

One program called Buyer Accepted gives you the power of buying in cash even if you plan to finance. In this program, New American purchases the home you intend to buy and then sells it back to you, providing financing and charging a fee to do so. Cash buyers are more likely to have their offer selected when a home has multiple offers, so if you are shopping in a hot market then Buyer Accepted might be a good option.

Another great advantage with New American today is its 5 Year Rate Protection Pledge. New American offers home buyers the ability to refinance without lender and appraisal fees at any time in the next five years if their rates become more favorable, assuring their buyers get the best rate possible. This can be an especially important consideration in a time of high mortgage rates. 

Pros

  • Convenient digital tools for easy loan application and management
  • Personalized customer service
  • Strong reputation for customer satisfaction and positive reviews

Cons

  • Limited options for borrowers with unique financial situations or credit challenges
  • Delays or issues with the loan approval process

4. Best for Interest Rates: North American Savings Bank

North American Savings Bank (NASB) is headquartered in Kansas City and is one of the largest loan providers in the country. NASB offers several attractive and unique programs that can help healthcare workers find the perfect mortgage. 

In today’s climate of rising rates, its Rate Secure program allows buyers to lock in an interest rate for a full 90 days. If the rate falls in those 90 days, you can get whichever rate is lower. Typically, rates can only be locked for 30 days, and once they are locked there is little flexibility to move down, so the Rate Secure program helps ensure buyers get the best rate.

If you are looking to buy in the Kansas City area, NASB offers a special program to promote home ownership in the city’s most underserved areas. This program offers easier qualification standards if you don’t have great credit and no lender fees at closing.

Pros

  • Multiple account options with competitive loan rates and origination fees
  • In-house mortgages
  • Conventional, VA, FHA, jumbo, and IRA residential real estate loans

Cons

  • Loan process not completely online

5. Best Online Lender: Rocket Mortgage

Quicken Loans’ Rocket Mortgage program is the leading home lender in the country. It offers a wide selection of mortgage loan options ideal for healthcare workers, including conventional mortgage loans, VA loans, and low down payment FHA loans. 

Rocket Mortgage is a particularly popular online lender thanks to its easy and streamlined online loan application. Its loans require less paperwork and offer a quicker lead time than many competitors, which can be beneficial if you need to move into your new home quickly. 

Like NASB, Rocket Mortgage offers a 90-day rate lock through its Rateshield program. If you value a streamlined process (and don’t mind doing some homework on your own beforehand), then Rocket Mortgage can offer you a faster home loan. Its loan application can be completed entirely online, and you will receive preapproval immediately in many cases. Rocket Mortgage also has an extensive learning center that includes great information for anyone looking to purchase a home.

Pros

  • Apply online through their website
  • Faster loan processing times
  • Variety of mortgage options

Cons

  • Lack of personal interaction
  • Inability to negotiate terms

Healthcare Worker Home Loan Assistance Programs

Plenty of viable lenders offer affordable loan options for healthcare employees. However, there are also programs out there that offer better terms, lower rates and fewer fees for those in the medical field. The following are a few popular programs you might be able to take advantage of when buying a home as a healthcare professional.

Nurse Next Door

Nurse Next Door is an extension of the Teacher Next Door program, which is the largest home-buying program in the country. This program specializes in finding homes for people in the healthcare field, and its agents can help you find grants, down payment assistance and/or the perfect loan type to fit your needs. With programs for first-time buyers and assistance for those with different down payment needs, Nurse Next Door is a fantastic starting point for any healthcare professional who is beginning their home search.

Homes for Heroes

Homes for Heroes is a service that helps healthcare workers, military members, teachers and first responders find their perfect home and secure financing. 

Through its network of professionals, Homes for Heroes will match you with a real estate agent, lender and possibly other providers of real estate services such as appraisers and inspectors who have all agreed to reduce or eliminate their standard fees when working with a member of the healthcare field. The program’s website states that the average participant saves about $3,000 per real estate transaction. If you are open to working with one of its agents and lenders, then Homes for Heroes can provide some great savings when buying a home.

How Can Healthcare Workers Prepare for a Mortgage?

Healthcare workers have options to access affordable home loans and down payment assistance programs. But there are additional steps you can take to improve the chances you’ll be approved for a home loan, including: 

  • Pay down debt: Any debt you have outside of your pending mortgage loan will hurt your chances of being approved for financing. If you have a large amount of credit card or student loan debt, you may want to take some time to pay down debt before you apply for a loan. 
  • Check your credit report: Your credit score plays a major role in your ability to get a mortgage loan. Before you apply, check your credit report to make sure there are no errant items hurting your score. If you see a negative item on your credit report that you don’t recognize, report it to the bureau issuing the report. 
  • Don’t open new credit lines: When you submit your mortgage application, hold off on applying for new lines of credit until the underwriting process is complete. This will show your lender that they don’t need to worry about you taking on more debt immediately after being approved for a loan. 

Frequently Asked Questions

Q

What will disqualify you from an FHA loan?

A

A credit score below 500 or debt-to-income ratio greater than 43% can disqualify you from a FHA loan.

Q

Is Nurse Next Door legitimate?

A

Nurse Next Door is a legitimate resource for healthcare professionals that helps them through the home-buying process.

Q

Can I use a home loan for healthcare workers to refinance my existing mortgage?

A

No, a home loan for healthcare workers is typically designed for purchasing a new home or financing home improvements specifically for healthcare professionals. To refinance your existing mortgage, you would need to explore other refinancing options such as a traditional mortgage refinance or a specific refinance program offered by your lender.

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Sarah Horvath

Sarah is an expert in the insurance, investing for retirement and cryptocurrency space.