Best Loan Programs for This Situation
Fannie Mae and Freddie Mac have specific travel nurse income guidelines. With 2 years documented, conventional is often the cleanest approval path.
Works well for travel nurses with lower down payments or credit scores under 700. Same income documentation requirements apply.
For veteran travel nurses, VA combines $0 down with flexible income guidelines.
Travel nursing pays well, but most of that pay is structured to minimize taxes, which creates a problem for mortgage qualification. The large per diem allowances (housing stipends, meal allowances) are non-taxable and generally cannot be counted as qualifying income. What matters to lenders is your taxable base wage shown on your W-2. For many travel nurses, that number is still more than enough to qualify for a home in Bakersfield.
What Income Counts and What Doesn't
Lenders look at your taxable income from agency W-2s. Non-taxable per diem components (housing stipends, travel reimbursements, meal allowances) are excluded from qualifying income regardless of their size. Your hourly base wage, taxable overtime, and other taxable compensation all count. Many travel nurses with total packages of $90,000 to $130,000 annually have taxable income in the $45,000 to $75,000 range. That's still enough to qualify for a $300,000 to $400,000 home in Bakersfield.
Handling Contract Gaps
Short gaps between contracts (under 30 days) are generally acceptable if you can provide a letter of explanation showing the gap was intentional, consistent with your travel nursing pattern, and that new contract employment has been re-established. Longer gaps require more documentation. A current active contract or signed offer letter helps significantly if you're between assignments when applying.
Two-Year History and Agency Consistency
Fannie Mae guidelines allow travel nursing income with a two-year history of continuous travel nursing in the same specialty. You don't need to have used the same agency for two years, but the work must be in the same nursing specialty. Provide two years of W-2s from all agencies plus your most recent contract or offer letter.
Travel nursing income is one of the most commonly mishandled income types in mortgage lending. Most loan officers don't understand the distinction between taxable wages and non-taxable per diem, and they either over-count or under-count the qualifying income. I structure these files correctly from the start and know which lenders in my network are experienced with travel nurse approvals.
Want to know exactly how much of your travel nurse income can be used to qualify for a home in Bakersfield?
Call Dan at (661) 342-9381. He'll review your income documentation and loan options in a free call.