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What does maternity leave do to qualifying for a mortgage?

I am about to go on a year of maternity leave and I wish to purchase a new home when I get back to work rather than rent a bigger unit.Are there any stipulations with maternity leave in regards to employment history? Do I need to work another two years to qualify or what?My husband has been working steady for 3 years, but the loan we're looking for (need around 450-475k) would not be covered by his job alone. I've worked 4 years prior to this, and we are willing to put 20% down on this. What should I do? by sandy._169_819 from Tustin, California. Oct 14th 2011 Reply


Chris Gummerson (cgummerson11)
#397 ranked lender in California - 648 contributions

Yes you will be able to purchase a home, as long as your credit and income are sufficient. For maternity leave, your previous and current income and work history will be used. A lender cannot discriminate against a person for maternity leave. You must show a history of working a full two years, as well as have a steady income once back to work. Some employers provide maternity pay, and that can also be used with most lenders, as long as its verifiable and sufficient. Good Luck.

Oct 14th 2011
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Shon Atabaki (ShonAtabaki)
#49 ranked lender in Washington - 95 contributions

You will be in good shape based on the scenario that you've described, assuming that your credit scores and rental history are also satisfactory. Best of luck!

Oct 14th 2011
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Bill Ladewig (bill@yourfhaguru.com)
#362 ranked lender in California - 34 contributions

As others have already stated you will qualify based on your income and credit when you return to work as long as you can show at least two years previous employment. The lender will require a copy of your current paystub before they will fund your loan.Best wishes for your happy and healthy baby.

Oct 14th 2011
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,236 contributions

First of all, congratulations. Maternity leave is considered a break in service. This would not be an issue in terms of your qualifying. However, if your income is also needed to meet the debt-to-income ratio requirements, most lenders will not approve your loan until you have been back to work and provide 30 days worth of paystubs. Your new employment does not need to be with the same firm, or even in the same industry, but it helps.

Oct 14th 2011
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,296 contributions

The quick answer... Just be back at work, and you'll be fine.

Oct 15th 2011
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Nathan Rufty (nathan.rufty)
#527 ranked lender in California - 63 contributions

if you wish to purchase now we can do that, we will use your disability income to quailfy you as long as the income and credit meet the guidelines for a purchase of $450k.

Oct 16th 2011
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Deborah Garvin (loanmonarch)
#497 ranked lender in California - 53 contributions

I agree with all of the comments, with one exception. Are you taking a medical leave from your current employer and going back to work for the same employer at the same position/salary. If so, a 30 day pay stub upon your return will suffice. If you are going to another company or have a change in position, it can still be done; however, it will take a little more effort on both your part and the mortgage consultant. Also, a lender MAY require longer than 30 days. Best of luck!

Oct 18th 2011
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