Need a Mortgage? Don’t Get Pregnant | The Frugalista

Need a Mortgage? Don’t Get Pregnant

by frugalista on July 21, 2010

EEEK! So, the New York Times writes that some mortgage companies are hesitant to lend money to people who may have a drop in income, even if it’s because they are on maternity leave.

I mean, how Draconian can one be? Yes, the economy tanked, largely because of bad mortgages. People bought homes that they could not afford. But, I would hate to think that a person on maternity leave couldn’t get a loan because she decided to take three months off work to take care of her little one.

Yes, staying home with a newborn often means a temporary reduction in income, but it should not be enough to stop someone who is otherwise fiscally fit from getting a 30-year mortgage.

I’m starting to think we are taking these reforms a bit far. We are messing with family planning here. If a person has 20 percent down payment, decent credit , stable work history and a cushy savings account, she should be able to get a home.

As a person in her childbearing years, I detest this new trend.

Am I wrong? Are lenders smart by looking at whether a person plans to take a maternity/paternity leave? Are the financial regulations going to far? Talk to me!

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