Hello, my girlfriend is a travel nurse and is looking to buy her first home but cannot seem to find any traditional financing since she is technically a "contractor" and has only been travel nursing for 1 year. I was wondering if anyone had any ideas on how she could secure a low down payment loan for her first home. Or if that is even an option? Thanks ahead of time.
Lender 路 OR ID AZ CA WA CO NV TN MT 路 Member since 2018 路 599 posts 路 312 votes
3y
@Lawrence Potts@Jordan King thanks for asking! I have worked with several travels nurses over the past couple years. It is best to work through the same travel agency as you pick up different hospital contracts for lendability. We have to take a 24 months average and you have to have worked as a travel nurse 18-24 months to use your variable income, but if you work for the same travel agency, that is most streamlined and you are typically W2 as @Chris Allen mentioned. If you are 1099, then 2 years Schedule C like traditional self employed borrowers is required. If you are constantly switching around to different travle agencies and having multiple W2s and being active on and off with different agencies, this does not work for income or qualifying.
She is probably contracted out 1099 with the hospitals she works for during those terms. If she was nursing at one location for a while prior to doing traveling nursing, they may make a case that she can qualify for traditional financing potentially but you would need to double check that with an experienced lender first. Like any other 1099 contractor like an agent or mortgage broker, it's considered self-employment and we all need at least 2 years of tax returns to get traditional financing again. I would ask brokers here on biggerpockets and see if some carry in-house lending products or have other suggestions. @Grant Schroeder what are your thoughts?
Hello, my girlfriend is a travel nurse and is looking to buy her first home but cannot seem to find any traditional financing since she is technically a "contractor" and has only been travel nursing for 1 year. I was wondering if anyone had any ideas on how she could secure a low down payment loan for her first home. Or if that is even an option? Thanks ahead of time.
Hey there, I am a travel nurse as well. It can be difficult to get financing if you have not been doing travel nursing for 2+ years, but not impossible. When I do travel contracts, I am considered a w2 employee of the travel agency, not a 1099, so she might be as well. Call around to multiple lenders and don't take no as an answer. Here are a few tips that I did to get financing.
- Write out a detailed letter/email explaining your time in the industry as a whole; including how much you have made each year as a nurse, how your contracts work, how you get paid, and job outlook.
- Provide all of your Tax Returns for the last several years as a nurse.
- Ask your recruiter to write an email to the lenders stating your contract terms and length, and outlook for employment.
Thank you for your insight on that! @Jordan King I 100% agree to not take no for an answer. Talk to as many lenders as you can! Good ones will find an ethical way to make it happen 馃憡馃挭 let us know what you鈥檙e able to find!
Real Estate Broker 路 Austin, TX 路 Member since 2022 路 89 posts 路 93 votes
3y
I would check with multiple lenders to see if any can make it work. If not, she could also possibly consider buying with a bridge loan and refinancing once she has 2 years of filed tax returns documenting the income. You would need a good lender to ensure she *will* be able to refi when the time comes.
Lender 路 OR ID AZ CA WA CO NV TN MT 路 Member since 2018 路 599 posts 路 312 votes
3y
@Lawrence Potts@Jordan King thanks for asking! I have worked with several travels nurses over the past couple years. It is best to work through the same travel agency as you pick up different hospital contracts for lendability. We have to take a 24 months average and you have to have worked as a travel nurse 18-24 months to use your variable income, but if you work for the same travel agency, that is most streamlined and you are typically W2 as @Chris Allen mentioned. If you are 1099, then 2 years Schedule C like traditional self employed borrowers is required. If you are constantly switching around to different travle agencies and having multiple W2s and being active on and off with different agencies, this does not work for income or qualifying.