Yes, You Can Still Get A Mortgage If You're Pregnant

Mortgage and Lending with First Time Home Buyer, Mortgage Rates, Pre-Approval NMLS 243370
Denver Mortgage News The New York Times ran an important story this week concerning pregnancy and mortgage approvals. Titled "Need a Mortgage? Don't Get Pregnant", the article discussed the difficulties that expecting and recently-expanded families are having with their mortgage financing. NBC's The Today Show picked up the story as well, as shown in the 3-minute clip above. The crux of the issue is that maternity/paternity leave often leads to a change in household income and mortgage lenders will no longer assume one or both parents will go back to work full-time. The loss of income can raise a household's debt-to-income ratio to unlendable levels. Now, your loan officer cannot ask you about a pregnancy; such questions would be in violation of Equal Credit Opportunity Act. But he can ask if whether you expect your future employment and income situation to change. This would be a perfect time to broach the topic. And you should. If you're found to have withheld employment and income information from your lender at a later date, it could result in an immediate loan denial plus a loss of earnest monies paid. Across both pieces, though, the prevailing message is this: Families concurrently planning to (1) have a baby and (2) buy a home should be up-front and forthcoming with their loan officers. Financing is often still available for families expecting an addition -- there's just some extra paperwork though which to work. Be prepared for that paperwork and you're more likely to get your loan.

Comments (4)

Carla Dimond
CATARRA - Mountain View, CA
(Silicon Valley)

Ben, I guess it makes sense....

Jul 22, 2010 04:27 AM
Joe Harvey
Lake Worth Real Estate - Lake Worth, FL

I will give you first hand info if you remind me in the spring as I am planning my wedding, looking at houses, and we are planning on having a child shortly after the nuptials.

Jul 22, 2010 04:39 AM
Corri Klebaum
Advantage Mortgage Inc. - La Grande, OR
NW Mortgage Pro

Discrimination across the board... HUD IS now investigating.




Jul 22, 2010 04:54 AM
Adam Malachi
A 2 Z Realty LLC - Castle Rock, CO

Hello Ben ~

Great post! Thanks for the information's Ben!

Thanks for sharing,


Jul 22, 2010 11:56 AM