How to Get a Purchase Home Loan in California if You’re Pregnant or Going on Maternity Leave

If you read the New York Times, you might htink it’s impossible to qualify for a home purchase loan in California if you are pregnant or going on maternity leave.  The New York Times article, titled “Need a Mortgage? Don’t Get Pregnant“, discussed the difficulties that expecting and recently-expanded families are having with their mortgage financing.

The Today Show, on NBC also picked up the story as shown in the 3-minute clip above.

The concern is the issue that maternity/paternity leave often leads to a change in household income and mortgage lenders will no longer assume one or both parents will go back to work full-time.  The loss of income can raise a household’s debt-to-income ratio to unlendable levels.

Now, as your loan officer, I cannot ask you about a pregnancy; such questions would be in violation of Equal Credit Opportunity Act.  But I can ask if whether you expect your future employment and income situation may change. This would be a perfect time to discuss the topic so I can help youy plan accordingly.

Both the Times article and Today show clip, the prevailing message is this: Families concurrently planning to (1) have a baby and (2) buy a home should be up-front and forthcoming with your loan officer.  The good news is financing is still available for families expecting an addition — there’s just some extra paperwork though which to work.

Just be prepared for that paperwork and you’re more likely to get your loan.  Call me if you would like to discuss how to plan for this situation.  Brad Yzermans (951) 215-6119.

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