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Pregnant women have trouble getting mortgages
ORLANDO, Fla. – July 21, 2010 – Some lenders are balking at approving loans
when a new parent has temporary lost income because she is home taking care
of the baby.
Even if a parent expects to be back at work in weeks, banks still may deny the
mortgage. “If you are not back at work, it’s a huge problem,” says Rick Cason,
owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only
deal in guaranteed income these days. “
Lenders will not consider disability payments as income because they don’t last
for three years.
A spokesperson for Fannie Mae said that a borrower on maternity or paternity
leave could qualify for a mortgage by providing a letter from a doctor with the
approved return-to-work date and a letter from the employer confirming the
acceptability of the return date.
But mortgage brokers and practitioners say lenders aren’t interpreting the
guidelines that way.
“There is no real assurance that the new mom will come back to work after she
has the baby,” says Marc Savitt, president of the Mortgage Center, a brokerage
in Martinsburg, W.Va. “It’s just prudent underwriting to go ahead and approve
the loan, but she has to be back before closing.”