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Qualifying For A Mortgage During Pregnancy & Maternity Leave?

Reblogger
Real Estate Agent with Lisa Von Domek Team TX License #0552989

This is an occurrence that many may not have considered and could throw a monkey wrench into a buyer's home buying plans.  As always, George Souto has the answer to any mortgage question...and this one is no exception. 

Please visit George's original post to leave a comment there and if you are not already following George Souto here in the Rain, I highly recommend that you do so!. He is the Connecticut Mortgage Expert but many of his blog posts offer advice, information and wisdom for all. 

Original content by George Souto NMLS #65149

A common concern I experience with young families who are planning on purchasing a home, is will they still qualify for a mortgage if the wife becomes pregnant.   Lending Guidelines are very clear on Qualifying For A Mortgage During Pregnancy & Maternity Leave? 

Lending Guidelines DO NOT allow for a Lender to ask whether a Borrower is pregnant or not.  Let me repeat that in another way, Lenders CANNOT ASK if a Borrower is pregnant or not, or whether they intend to become pregnant.  Also when verifying employment, the employer is not required to state whether the Borrower is pregnant or not. 

The only time this information would be provided is if the Borrower IS Already OUT on Maternity Leave, therefore, the employer would report the Borrower is not presently working, and out on Maternity Leave.  Also the Borrower will need to explain why they do not have paystubs to submit if they were out on Maternity Leave during time of application, or why the reduced income if they are receiving reduced compensated during Maternity Leave.

What Lenders have to document and allowed to ask is the Borrowers present employment status, and continuance of income if the Borrower is receiving income which has a start and end date.  An example of this would be a Borrower who does research work and the research is being funded by grant funds.  In this case the Lender would want assurance the grant funds will continue for at least three years from the date of the Closing.  Same thing with Child Support and Alimony, there needs to be a three year continuance.  I will post a blog later this week on the guideline for Child Support and Alimony.

For most jobs proof of continuance is simply, is the Borrower employed today.  No Leader requires an employer to guarantee employment for any length of time into the future, or a self-employed Borrower to guarantee they will remain in business until a certain point in the future.

The only time a Lender is allowed to question a Borrower when it comes to Maternity is whether or not the Borrower will return back to work if they are currently out on Maternity Leave.  In that case the Lender will require the Borrower to produce a paystub prior to Closing to prove they have returned back to work.  The Borrower cannot use income in anticipation of their return to work, they actually have to be back at work.

So when it comes to Qualifying For A Mortgage During Pregnancy & Maternity Leave, is if the Borrower is working or not.  If they are working, no clarification of their Maternal intentions are required.  If they are not working, then an explanation of why they are not working is required.  The same is required of every Borrower regardless of their gender, status, or age.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

Comments (11)

Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

It may be a rare situation...but certainly one that needs a heads up !

Jan 22, 2018 07:54 PM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Thank you for  re-blog don't know how I missed this  --busy I guess

Jan 22, 2018 09:39 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

There is not one post that is not Re-blog worthy related to Loans... our friend George Souto  is so generous with the information, Endre

Jan 22, 2018 10:16 PM
James Dray
Fathom Realty - Bentonville, AR

Morning Lisa.

Well again, I've learned something new here in the Rain.  I did not have a clue

Jan 23, 2018 01:10 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Lisa Von Domek great information in this reblog....and I'll leave a comment on George's post...

Jan 23, 2018 03:10 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Lisa. George is definitely a great source of information. Thanks for the reblog. Enjoy your day!

Jan 23, 2018 03:52 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Lisa... this is a great reblog, as I know that when I first read it on George's site I realized I'd never given this issue much thought... as I think many of us hadn't.

Jan 23, 2018 05:46 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

That is an interesting question that never occurred to me. This was a good re-post.

Jan 23, 2018 07:19 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Lisa - George is totally on top of everything relating to mortgages.

Jan 23, 2018 10:18 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lisa thank you for re-blogging my blog and sharing it with your readers.

Jan 23, 2018 05:42 PM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for sharing this excellent reblog selection.

Jan 28, 2018 04:56 AM