The Real Deal Miami

Parents face tough mortgage standa

July 22, 2010 02:30PM

Lending standards for mortgages are toughening up, especially for families expecting a child, said Jean Chatzy, financial editor at MSNBC. “It’s become significantly tougher to qualify,” she said. Lenders are now saying that they need to see income statements, not just for right now, but whether they will last for the next three years. The banks are now following these higher standards set by Fannie Mae and Freddie Mac, and checking applicants not only at the time when they apply for a mortgage, but also at the time that they close on their home. This can be problematic for a woman who has a baby and is on maternity leave or decides to become a stay-at-home mom in the interim, Chatzy said. She advises that mortgage seekers, if they can afford it, should “qualify for that loan based on a single income to begin with, to just eliminate the problem.”