How Do You Qualify For Medical Practice Business Loans
If youre looking for the best loans on the market, youll need excellent personal & business credit, collateral, plenty of money in the bank, high annual revenue, and at least two years in business.
The products United Capital Source has access to are much easier to qualify for. Your ability to meet the aforementioned requirements will determine your loan amount, interest rates, and terms. But falling short in any of these areas wont stop your medical practice from qualifying for multiple loan products. With some products, your credit score and tax returns are practically irrelevant. For example, a merchant cash advance eligibility is based on your monthly debit and credit card sales volume. With accounts receivable factoring, eligibility is more dependent on your customers creditworthiness, not your own.
Nurse Practitioner Vs Doctor
If you’re a nurse practitioner, you may wonder why a doctor has access to physician mortgages, but you do not . After all, physician mortgages were created to cater to the unique financial situation medical professionals find themselves in. This cohort of the population spends a significant amount of time in school and rakes up a significant amount of debt in the process. And then, when they graduate, they lack the kind of work history that a traditional mortgage lender requires. So what gives?
A nurse practitioner is a registered nurse with advanced training and education. NPs can diagnose and treat acute conditions, they can order diagnostic tests, serve as a primary care provider and even write prescriptions. The only difference between a nurse practitioner and a doctor is NPs cannot perform surgical procedures without the supervision of a doctor. And in fact, some states require a doctor to oversee an NP writing prescription. It’s about time lenders recognize NPs and expand more doctor home loan programs to include them in their physician mortgage programs.
Homes For Heroes: Healthcare Professionals
Homes for Heroes is another nationwide homeowner assistance program that aims to make home buying more affordable for firefighters, law enforcement, teachers, military, and yes medical professionals.
The website says, On average heroes save $2,400 when they buy or sell a home with Homes for Heroes. When a hero works with our real estate specialist, on average they will save $1,700. When a hero works with our mortgage, title and inspection specialists, on average that hero will save $500 on lender fees, $150 on title service, and $50 on a home inspection.
Note that you have to use professionals recommended by Homes for Heroes in order to benefit. Again, check other local programs to make sure this is the best option for you before you buy.
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Federal Perkins Loan Cancellation And Discharge
If you have federal Perkins loans and work as a full-time nurse, you may qualify to get up to 100% of your loans discharged. While new Perkins loans are no longer being made to students, borrowers who already have them can still get them canceled according to the rules of the program.
Nurses must be employed full time to qualify for discharge, and loans will be forgiven incrementally over five years. You must apply either through the school that disbursed the Perkins loans to you or through your loan servicer.
What If Im Declined For A Medical Practice Loan
If your application is declined, it might be because you applied for the wrong product for your cash flow. In this case, we would likely recommend a different product with less hazardous repayment terms.
Your application might also be declined after determining that you cannot afford to take on more debt at this time. Instead, your needs and financial circumstances might be better suited for another financing tool, like a business credit card or even a personal loan. Both options can be accessed through UCS and are usually much easier to qualify for than small business loans from traditional banks.
If your personal credit score prevents you from accessing financing, you should consider these . We can help you identify the issues that keep your score down and develop practical solutions for eliminating them.
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Tips To Use All Your Nurse Pay To Qualify
Here are some ideas on what you should do to document your pay
- Keep all your paystubs for the past 2 to 3 months
- Find your last pay stub from the prior year
- Get your W2s for the past 2 years
- Request a letter from your employer stating your shift differentials and overtime are likely to continue
- Give your lender a contact name and number for your HR department
- If youve changed employers, find your final pay stub and the W2 from all your former employers over the past 2 to 3 years
All this may seem like overkill, but youll be glad you did your prep work when you go to apply for a mortgage.
Public Service Loan Forgiveness Program
If you work in the public sector, you may get your federal student loans forgiven through Public Service Loan Forgiveness after working full time and making 120 payments, which do not need to be consecutive.
Federal direct loans in good standing are eligible for forgiveness. Borrowers must work at least 30 hours per week for a government or nonprofit, including a nonprofit hospital, to be eligible.
Only payments made after October 2007 qualify for this program. To help you stay on track, be sure to fill out an employment certification form and submit it to FedLoan Servicing, which is the loan servicer for this particular program. Unlike forgiveness through an income-driven plan, your forgiven balance under PSLF will not be considered taxable income.
Having your student loans forgiven through PSLF is difficult, however, due to the specificity of the programs requirements. As of September 2020, less than 2% received forgiveness, according to the Department of Education.
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Qualifying Employers For The Nclrp
NPs hoping to benefit from NCLRP must complete the following time requirements in one of the following arenas:
- 32 hours per week for 45 weeks per year at a critical shortage facility in or serving a health professional shortage area an area lacking primary care and/or mental health professionals
- Nine months per year at a qualifying school of nursing
To qualify for NCLRP, NPs must work for one employer or within the same network of dependent satellite facilities. An NP working for multiple employers does not qualify for NCLRP.
Once accepted to become a part of NCLRP, the entire two-year contract must be completed in the original arenaan NP who began their NCLRP contract at a CSF cannot switch to a nursing faculty track until after the contract period is complete.
While many facilities do qualify, two very specifically do not:
- Clinics in prisons
- Staffing and travel nurse agencies
Lender And Bonus Disclosure
All rates listed represent APR range. Commonbond: If you refinance over $100,000 through this site, $500 of the cash bonus listed above is provided directly by Student Loan Planner.
CommonBond Disclosures: Refinancing
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC , NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. If you choose to complete an application, we will conduct a hard credit pull, which may affect your credit score. All Annual Percentage Rates displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
CommonBond Disclosures: Private, In-School Loans
Student Loan Planner® Disclosures
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General Tips For Travel Nurses Who Want To Buy A House
The Mortgage Reports asked former travel nurse recruiter and current content director for Nurse.org Angelina Gibson for her advice to nurses looking to buy in the near future. Heres what she had to say.
Save all travel nursing contracts. Keep physical copies of the contracts between yourself and your travel nursing agencies for all your travel nursing assignments.
Your broker will ask you to explain all gaps in employment and to also provide proof of consecutive assignments. It is also a good idea to keep copies of your contracts online in a cloud service like Dropbox or another digital format to easily access.
If you are able to, you could save copies of your pay stubs. You should also be able to ask your agency for a copy of your deposits. Keep in mind that some agencies may not keep these records or they may not be readily accessible. Save yourself the hassle by keeping all your own records.
Do not accept travel nursing assignments with high non-taxed stipends and low taxable pay. Though it may be tempting at the time to accept an assignment offering a low taxable hourly rate and high non-taxed stipend, it will not be worth it in the long run. Especially if you have plans to purchase a home.
Why?
Because non-taxed stipends are not considered wages by the IRS, your broker may not count the stipend as income. If your taxable hourly rate is too low, it may decrease the amount of your loan.
The IRS considers non-taxed stipends reimbursements, not wages.
What Our Clients Say
I highly recommend using Nurse Loan Programs to help you find the right lender for you. I was connected with a Nurse home loan specialist in just minutes after submitting my information. I got into my new home in less than 30 days with $0 money down and no mortgage insurance!
Nurse Practitioner, Dallas, TX
Nurse Loan Programs is the reason why I am a home owner! They helped me get in touch with the right lender for my state and the service provided was exceptional. Being a first time home buyer Im so thankful I stumbled upon this website.
Nurse Anesthetist, San Diego, CA
I am a recent graduate and thought because of my student loan balances I would not be able to afford a home. After getting in touch with one of their loan officers I realized they had solutions to help me qualify for a home loan even with my student loan debt. I was even able to get into my home 60 days prior to my first day on the job! Sharing this website to all my coworkers!
Clinical Nurse Specialist,
Connect with a nurse loan specialist for a free, no-obligation mortgage assessment.
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Repayment Of Loans/service Obligation
The NLRP recipients earn forgiveness on their loan repayment award through a service obligation. This means you must work in a position requiring your licensure and within your scope of practice in a HPSA. The minimum obligation is two years, per each individual award.
Qualifying employment is considered as full-time, direct patient care at any hospital in the State of Missouri or at any facility located in a HPSA. You can search for HPSAs here.
Staffing and travel nurse agencies, private for-profit facilities, and clinics in prisons and correctional facilities may not be eligible facilities because they may not be serving Missourians in a HPSA.
What Are Todays Mortgage Rates
Nurses can often find especially good deals when they take advantage of healthcare-oriented mortgage and assistance programs.
But dont stop at finding the right loan program. You should also shop around for the best mortgage lender.
Youre likely to be offered different mortgage rates and closing costs by each lender to which you apply. So get quotes from several and pick the one with the best deal for you.
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Student Loan Forgiveness For Nurses
Student loan forgiveness for nurses can greatly reduce your student loan debt. Learn about nursing loan forgiveness programs and how to apply.
Nursing school can be expensive, especially at the BSN, MSN, and DNP levels. If you’re working and burdened by loans, this guide explores several options for student loan forgiveness, specifically for nurses. You can be free of most or even all of your student loan debt in just a few years. Keep reading to learn more about how to start enjoying or saving more of your salary today.
Nurse Corps Loan Repayment
To help address the shortage of nursing school faculty, the Health Resources and Services Administration offers forgiveness of up to 85% of loans for RNs, APRNs, or nursing faculty. You must work for up to three years in a Critical Shortage Facility or an accredited nursing school.
Who is Eligible: RN, APRN, or nurse faculty with student debt, with a degree from an accredited school, who works in a CSF, or teaches nursing
Learn More About/Apply to Nurse Corps Loan Repayment.
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California’s State Loan Repayment Program
California’s SLRP is a great example of a student loan forgiveness program for NPs and other healthcare providers practicing in state-designated health professional shortage areas . The program repays up to $50,000 of your eligible student loans if you meet the following qualifying criteria:
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You are a United States citizen
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You are licensed to practice medicine in the state of California
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Free from any other service requirements for debt forgiveness
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You work or have accepted a job offer at a state HPSA site
Those working forty-hour full-time jobs will serve two year commitments, while those working part-time will be expected to serve out a four year commitment.
Loan Options From Private Lenders
Some private mortgage lenders offer reduced closing costs or other perks for nurses.
For example, Homes for Champions says that its offering for nurses and doctors can save you up to 2.00% to 3.00%” by eliminating many fees normally due on closing. But this company is a licensed direct lender in only 13 states, plus Washington DC: CT, DC, DE, FL, GA, MD, NC, NJ, NY, PA, SC, TX, and VA.
Other companies or organizations also offer help to homebuyers who are nurses.
One such program is the Everyday Hero Housing Housing Assistance Fund. It seems that it refunds to you seller concessions negotiated by specialist real estate agents. You wouldnt be alone in assuming thats a scam, it has an A+ rating with the Better Business Bureau. So it may be worth checking out. Just remember that seller concessions are hard to obtain in sellers markets, which most are at the time of writing.
Meanwhile, Nurse Home Loan Programs says its goal is to educate and connect our Nurses with the best home loan solutions for them all over the country.
It might be worth talking to one of the companys specialists if your applications are getting rejected. Because that does sometimes happen with lenders that dont understand nurses special working conditions, such as overtime and differential income or that struggle to grasp the challenges of high student debt and travel nurses seemingly chaotic employment records.
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Becoming A Nurse Practitioner
Becoming an NP is no easy feat in the first place. It requires a lot of education, and requires you to:
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Become a registered nurse
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Earn a Bachelor of Science in Nursing
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Complete a graduate level master’s or doctoral nursing program
After all of this, nurse practitioners still need to pass the national board certification examination.
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Disadvantages Of A Fha Loan:
- Those who go with a FHA home loan will need to pay a Upfront Funding Fee when you go through the closing process. This fee is 2.25% of the total financed amount. This is extra insurance for the government to assume the risk of your loan. Usually, this can be rolled into your mortgage however, or you can pay it at your closing.
- All FHA loans must include Mortgage Insurance Premiums for the life of the loan. MIP protects the mortgage lender in case you are unable to pay the loan back. This insurance is a big reason why home buyers with lower credit scores and less cash to put down for a down payment still have the ability to purchase a house.
Generally, an FHA home loan for nurse practitioners will cost a home buyer more money over the term of the loan versus other loan types due to the higher interest rate and MIP costs. However, it still makes homeownership possible for someone with lower down payment funds or credit scores.
National Health Service Corps
Through the National Health Service Corps Loan Repayment Program, nurse practitioners or certified nurse-midwives who work in facilities that are located in designated Health Professional Shortage Areas across the country may be eligible for loan assistance.
The program requires a two-year commitment in exchange for an award of up to $50,000 for full-time workers and up to $25,000 for part-time workers. Apply online and provide additional supporting documentation as required.
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