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Pregnancy Could Hurt Mortgage Loan Prospects

Posted on July 21 By Francine Huff

Pregnancy has a lot of risks associated with it. But other than some of the obvious health issues involved, now your dreams of home ownership could be affected.

Apparently mortgage lenders are giving the thumbs down to parents who are expecting a baby or are on maternity leave when they apply for mortgage loans, according to the New York Times. That's because mortgage lenders want to see proof that a borrower's current income is enough to cover mortgage payments.

So if you just had a newborn and are on maternity leave, it's likely that you won't qualify for a mortgage even if you plan to return to work soon. Even if you can actually afford to buy a home to accommodate your growing family and are guaranteed a job after a leave, you may be required to provide even more proof of qualifying income and assets than normal.

In some cases, banks are showing new parents to the door and instructing them to apply later when they are back at work. And don't think that new moms are the only ones being denied. Workers who are on other types of leaves from their jobs and have a drop in income may also be out of luck when applying for a mortgage.

“Maternity leave or any other leave of absence often prevents a person from obtaining a mortgage. There are some who long for the days when such strict proof of income was not required,” John Councilman, president of AMC Mortgage in Fallston, Md., told the New York Times.

This entry is filed under Real estate , Mortgage applications , General information . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response.
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1 Responses to "Pregnancy Could Hurt Mortgage Loan Prospects"
  1. jamie 13, Jan, 2010

    I think that entire Obama Home Affordibility Act is a joke. My mom and I have been trying for a modification for over a year due to a severe injury and loss of employment and our lenders American Servicing Company with Wells Fargo Home Mortgage is useless. I can defintely see where homeowners are left with the no choice but to foreclosure because that short sale is a joke to as homes are sitting there people can hardly rent them let alone sell them, these big shots need to wake up and take a look around. Lenders should be willing to get a little bit more creative with homeowners and not so greedy and help the homeowners with in some what reality its better getting something then having houses sitting out there for a year with no occupancy and getting vandalized. Thank You

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