Does being on maternity leave affect me buying a home? Will my purchasing power be reduced? There are 3 situations with slightly different criteria:
Situation 1: If the borrower will be returning to their current employer prior to the first mortgage payment due date, the lender will qualify the borrower’s based on their gross monthly income amount that will be received when they return to work.
Situation 2: If the borrower is receiving reduced income or no income, the income may be supplemented by short-term disability insurance as well as liquid assets. Total qualifying income must not exceed the gross monthly income that will be received when the borrower returns to work.
Situation 3: If the borrower will not be returning to their current employer prior to the first mortgage payment due date, use the borrower’s gross monthly income being received for the duration of the temporary leave.
If you have any mortgage or real estate questions, whether related to maternity or VA loans, or not, please call me at 617 529 9317.