Getting a mortgage while on maternity leave: what to know

Can you get a mortgage while on maternity leave?

Yes, you can still qualify for a mortgage while on maternity leave. Lenders aren’t legally allowed to reject your application just because you’re pregnant or temporarily not working. If they do, that would violate the Fair Housing Act.

The main thing that lenders would evaluate in this case is whether you’d be able to repay the loan once your maternity leave ends. If you're receiving paid leave or using accrued vacation time, lenders usually count that income as normal. For unpaid leave, though, they’ll likely ask for a letter from your employer confirming your return-to-work date and your regular salary.

Paid vs. unpaid leave

Standard documentation is usually enough if you’re on paid leave. If your leave is unpaid, you'll need a letter from your employer confirming your return-to-work date and regular salary.

If you’re applying for a mortgage with a partner or co-borrower, their income will also be a part of the equation. In many cases, joint applications can make it easier to qualify, especially if your partner or co-borrower’s income remains steady during the leave.

To assess whether you’d be able to afford mortgage payments during the period you aren’t working, lenders may ask for additional documentation to verify your income and your intention to return to work.

Documents needed for a mortgage application during maternity leave

If you’re applying for a mortgage while on maternity leave, you’ll need to show lenders that you’re financially capable of keeping up with payments. For example, expect to provide a letter from your employer confirming that you're still employed and planning to return to work after your leave. If you're receiving paid leave, you’ll also need to provide proof of that income. 

If you’re on unpaid leave, lenders may want a signed letter from your employer outlining your return-to-work date. They might also ask for a short letter of explanation to walk them through your current situation.

Here’s a quick rundown of the documents you may need to provide:

• An employer letter verifying your current job status, salary and expected return-to-work date
• A personal letter of explanation that outlines your leave and confirms your return date
• Contact details for your employer for income and employment verification
• Pay stubs and bank statements from at least 30 days before your leave began
• Federal tax returns and W-2s from the last two years
• Benefits statement or short-term disability pay stub
• Proof of any additional income, like child support or alimony
• Statements for retirement and investment accounts
• Most recent loan statements
• Gift letter (if any of your down payment came from someone else)
• Details on any other properties you own, if applicable

How maternity leave affects borrowing power

Being on maternity leave doesn’t automatically hurt your chances of getting a mortgage, but it can affect how much you qualify for — especially if your income is temporarily lower. Lenders will still evaluate your ability to repay the loan, so they may offer a smaller loan if you're on unpaid leave. Often, lenders ask for a letter confirming your job status and return date to make sure you’ll have steady income long term. Paid leave or a co-borrower with steady income can help you qualify for more, especially if you also have a solid credit score, low debt and some savings.

Tips for getting mortgage approval

Getting approved for a mortgage may require you to jump through a few more hoops, but it’s definitely doable. Here are some ways to improve your mortgage approval chances:

• Have a solid financial foundation: Regardless of whether you’re on maternity leave, lenders want to see a strong financial cushion. Pay down any debts you have and try to save up for a bigger down payment or emergency fund. This will show lenders that you’re financially stable enough to handle a mortgage, even with a temporary dip in income.
• Choose the right lender: Not all lenders have experience dealing with maternity leave situations. So take the time to shop around and find lenders that are familiar with your circumstances.
• Add a co-borrower: If you aren’t confident about your financial situation, consider applying with a partner or co-borrower who has steady income to make your application stronger.
• Submit all required documents: Even if you’re qualified, missing required documents could delay your application process and hurt your chances. So make sure you have everything lenders might ask for, like a return-to-work letter, proof of any income during leave and a personal explanation, if needed.

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Reporting maternity leave housing discrimination

If a lender denies your mortgage application just because you’re on maternity leave, that’s discrimination. Under the Fair Housing Act, it’s illegal for lenders to treat you differently based on sex, familial status or pregnancy.

Some examples of discriminatory practices include refusing to count paid maternity leave as income, requiring you to return to work before approving your loan or denying you outright solely based on the fact that you’re expecting a child.

Illegal lending practices

• Refusing to count income from paid leave
• Not allowing you to apply while on leave
• Denying your loan solely based on pregnancy

Maternity leave shouldn’t keep you from getting a home loan you otherwise qualify for. If you think you’ve been discriminated against, you can file a complaint with the U.S. Department of Housing and Urban Development. It’s 100% free and can be done online, by phone or through your local fair housing agency.