At MortgageDepot, we see plenty of borrowers who don’t quite fit the mortgage qualification mold. It’s safe to say that nearly every borrower brings a new situation to the table! We help our Pennsylvania clients overcome their most challenging qualification barriers with innovative mortgage solutions.
What if you find your dream home while you are on temporary leave from your job? How can you prove that you can afford your mortgage payments while you’re not bringing in a paycheck? MortgageDepot offers a loan product that allows borrowers to use liquid assets as Temporary Leave Income.
What is Temporary Leave Income?
If you will be on short-term leave from your job when you close on your mortgage (or immediately following closing), you will need to tell the lender exactly how you plan to cover your mortgage payments until you return to work. This is called Temporary Leave Income. Qualifying temporary leave situations include:
Family medical leave.
Short-term medical disability.
Using Liquid Assets as Temporary Leave Income
To use liquid assets as Temporary Leave Income, borrowers must:
Only use funds available after subtracting down payment, closing costs and required reserves from the liquid assets.
Produce a written statement indicating the date that they plan to return to work.
Produce a written confirmation from their employer stating that the borrower will have a job after their leave is complete.
Divide the dollar amount of liquid assets by the number of months they expect to be off work to arrive at a monthly supplemental income amount.
Math problems can be tricky, but figuring out your Temporary Leave Income from liquid assets is quite simple. Here is an example:
If you have $10,000 of liquid assets in your bank account and you plan to be off of work for two months, your monthly Temporary Leave Income from liquid assets would be $5,000.
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