Mortgage Guideline Tip - Buying a home? On Maternity Leave?

Maternity leave from work is generally short in duration and borrowers on temporary leave may or may not be paid during their absence from work.

Employment Requirements.

If a lender is made aware that a borrower will be on maternity leave at the time of closing of the mortgage loan and that a borrower's income is needed to qualify for the loan, the lender must determine allowable income and confirm employment as described below.

• The borrower's employment and income history must meet standard eligibility requirements.
• The borrower must provide written confirmation of his or her intent to return to work.
• The lender must document the borrower's agreed upon date of return by obtaining, either from the borrower or directly from the employer (or a designee of the employer when the employer is using the services of a third party administer employee leave)
• The lender must receive no evidence or information from the borrower's employer indicating that the borrower does not have the right to return to work after leave period.
• The lender must obtain a verbal verification of employment.  If the employer confirms the borrower is currently on temporary leave, the lender must consider the borrower employed. 

If you have any questions or concerns about being on leave during your home buying process feel free to call or email me!