It is something all buyers who are starting families need to recognize and that is qualifying for a mortgage during a pregnancy and or maternity leave. George Soutu, a recognized mortgage lender, shares his knowledge all should read. Even if you are not planning a growing family, you will know someone who is and you can share this great post with them.
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.
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 firstname.lastname@example.org
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Ginny L. Gorman, a purveyor of Fine RI Waterfront Real Estate
Specializing in waterfront, ocean front, vacation, coastal and luxury homes for sale in North Kingstown, South Kingstown, Narragansett, Jamestown, Charlestown, East Greenwich, Exeter, West Greenwich RI and beyond ... I sell dreams! Because there is no place like home...the RI Real Estate Agent in the Sparkly Red Shoes.
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