Need a Mortgage? Don’t Get Pregnant
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!
6 Responses to Need a Mortgage? Don’t Get Pregnant
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Too far?! Um, yes. I get that lenders want to see income and that they don’t want to get into a situation of lending money if the income decreases drastically. But to fail swoop and say that if the woman is expecting, they won’t get a mortgage is totally baloney. What if you were expecting? What if I were expecting? We both own, and run, businesses? Do they really think we’re not going to go back to work. It’s total BS. Perhaps, instead, they should look at the work history of the woman, take into account her position, ask her if she plans to go back to work, and maybe reduce the amount they’re willing to loan until after she does go back to work. But to just say no because you’re expecting is borderline racist.
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The detail that concerns me in that report is with the women who had every intention or expectation of going back to work. How many times is a change in work routines or schedules after the baby arrives a sudden and unexpected change – rather than something that was a family decision during the pregnancy?
I’ve only known of one mom who changed her plans after the baby was born. She did try to go back FT, but that schedule didn’t work for her, and she has been PT ever since. Everyone else knew during her pregnancy if she was going back to work, staying home for a time, or changing her hours.
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Wow. Banks are looking for any reason imaginable to keep all the money the gov’t gave them to loan out. And they are shameless about it. They should just hang a sign that says “Open for Deposits Only – Don’t come in here asking for no money!!”.
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I agree with all of you here. Maternity didn’t cause the market to crash- shoddy loans and greed did!
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It’s business. If banks “cared” we would probably be in a different place with the house situation.
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Wow I didn’t know that. It’s good to know as my bf and I are planning to buy a house & want to start trying for a baby in the next 6 month!
Gini Dietrich