Homedirect loanDNP Mortgage: Financing for Nurse Practitioners (0% to 10% Down)

DNP Mortgage: Financing for Nurse Practitioners (0% to 10% Down)

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Key Takeaways:

  • Nurse practitioner mortgage loans offer 0% to 10% down payment options with no private mortgage insurance requirement.
  • Most DNP mortgage underwriting guidelines will modify or exclude student loan payments from your debt-to-income ratio (DTI) calculation.
  • Many physician mortgage programs haven’t expanded to include nurse practitioners, but there are a handful that include the nursing profession.

Advanced training and education comes at a cost for nurse practitioners — both in terms of racking up DNP student debt and hitting the pause button on many personal goals, such as owning a home. But the importance and reliability of your DNP degree is gaining traction in the banking world. Some lenders now offer nurse practitioner mortgage loans to help make homeownership a reality for many in the nursing field.

Nurse practitioner mortgage loans offer a low down payment solution for early-career nurse practitioners. They also come with more relaxed underwriting criteria, making it easier to qualify for than a conventional loan. Read on to learn about how you can benefit from a DNP mortgage and where to find one.

What are nurse practitioner mortgage loans?

A nurse practitioner mortgage loan, or DNP mortgage for short, is a specialty home loan program that provides down payment options that are as low as $0. Unlike a conventional mortgage that generally requires a 20% down payment, DNP mortgages don’t require private mortgage insurance (PMI) regardless of your chosen down payment.

Nurse practitioner mortgage loans usually fall within a broader category called a physician mortgage program. But depending on the lender, it might be classified as a professional home loan. Nurse anesthetists and registered nurses may or may not be considered a qualifying profession.

Here are some of the perks that might come with a DNP mortgage:

  • Low down payment options, ranging from 0% to 10% down.
  • No PMI, potentially saving you thousands of dollars each year.
  • Higher loan limits than a conventional loan (e.g. $647,200 in most parts of the country)
  • Modified treatment of student loan balances when calculating your DTI ratio.
  • More lenient income requirements, including the ability to close on a home before starting a new position (requires a valid employment contract).

These physician mortgage programs used to be exclusive to just medical doctors and dentists. But over time, lenders have cast a wider net to include other high-income, high-student debt professions.

So while your options might be limited now, hopefully, banks will continue to grow their programs and include more professions within the nursing field with time.

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