getting home loan maternity leave

First Time Home Buyer

Getting a Home Loan While on Maternity Leave

As a couple, there are fewer things more exciting than finding out you’re pregnant. Pregnancy is a beautiful experience. The memories you make over the next few months are something you’ll cherish forever! But what if you’re thinking about buying a home? Normally, when you purchase a home you have to provide proof of income. Can maternity leave hurt your chances of getting a home loan? Here’s what you need to know.


Buying a Home While on Maternity Leave

Many people choose to upgrade their homes when they find out they’re pregnant. Sometimes, this is because their existing home doesn’t have enough space for another family member. Or, sometimes the couple wishes to be closer to a good school. There are many reasons to purchase a new home, and expecting a child is definitely one of them!

Still, is it possible to purchase a home on maternity leave? Usually, getting a home loan involves submitting proof of income like recent pay stubs. In the United States, many women are not offered paid maternity leave. This may complicate your loan process, but does it prevent you from obtaining a loan?


Will Maternity Leave Prevent Me from Getting a Home Loan?

Being on maternity leave will not automatically prevent you from getting a home loan. In fact, by law, your lender is not allowed to ask if you are pregnant or on maternity leave. However, they are required to verify your proof of income.

Your income may depend on your employer’s policies and whether your maternity leave is paid or unpaid. So, in this manner, you may encounter some restrictions. However, there are guidelines in place under the FHA and Fannie Mae that make allowances for temporary leaves of absence including maternity leave.

As a borrower, you may be required to submit certain documentation. This may include a letter from your employer that states when you were hired and when you’re expected to return to work. 

Furthermore, there are many lenders out there who are willing to work with clients in these types of situations. If a lender is saying otherwise, you may want to move on and search for a new one. 


Have Questions About Your Loan Eligibility?

Do you have questions about maternity leave or your loan application? We’d be happy to help! Call Mortgage Solutions Financial today to speak to an expert about getting a home loan.