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Pregnant Women Are Liabilities to Mortgage Lenders

by Flexo on July 20, 2010. Real Estate and Home View Comments.

Here’s the message conservative lenders are sending: Don’t have a baby if you want to qualify for a mortgage.

On maternity leave or paternity leave, it’s common for a family’s income to drop. If income during the leave is classified as disability income, mortgages look at this income as temporary, and they often don’t consider the possibility of the parent on leave return to full-time and full-paid employment.

In this situation, the problem isn’t Fannie Mae or Freddie Mac, the quasi-government agencies that support the mortgage lenders. They haven’t tightened the rules for lending and have no problem with maternity leave. All they require is a doctor’s note and a letter from the employer listing the planned date of return and the full salary. Some lenders won’t consider any income from the individual on family leave.

As a result, it could be difficult for families to qualify for a mortgage at the time they might feel the need it the most — when a new baby is on the way. This is something to keep in mind when planning major life decisions like starting or expanding a family and buying a home.

Need a Mortgage? Don’t Get Pregnant, Tara Siegel Bernard, July 19, 2010

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About the Author

Flexo, the owner and creator of Consumerism Commentary, has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow him on Twitter.

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{ 1 comment }

1 Tawra@Living On A Dime July 20, 2010 at 9:14 pm

That’s interesting. I guess there’s another reason to add to the list of why we tell people when getting a mortgage they should make sure they qualify on just one income.

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