Maternity Leave and How It Affects Purchasing Your Home – Loans Boston

Short term disability, while on maternity leave, can affect your ability to purchase a home and its impact on your first mortgage payment.

In regards to short term disability, lenders will look at two things; employment and income. Let’s look at employment; you must provide written confirmation of your intent to return to work. The lender will then verify this with your employer.


Having a baby can be a very exciting time in your life, but be careful what you say around social media sites like Facebook. If you’re planning on leaving your job before your benefits expire and happen to share this with the World Wide Web, your loose lips could sink ships. Or in this case, the home you want to buy.


Now, when lenders look at your home, they will want to know if you will return to work before or after the first mortgage payment is due. Good news, if you return to work before your first mortgage payment is due, the lender will use your regular employment income. However, in the instance that you’ll return to work after your first mortgage payment is due, the lender will use your temporary leave income if any. If you do not receive temporary leave income or your temporary leave income is less than your regular income, the lender will consider your assets or a variable liquid financial reserves to make up the gap between your temporary income and your regular income.


If money is tight, consider putting less money down on your home purchase this will increase your reserves thereby increasing your purchasing power.

I hope this video is helpful. If you want to know more about this or about other important mortgage information please feel free to contact me directly.

Phil Ganz (354 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317

Leave a reply