Temporary Leave and Mortgage Qualification

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Temporary Leave and Mortgage Qualification

Being on temporary leave does not automatically prevent you from qualifying for a mortgage.

Borrowers may temporarily leave work for:

Maternity leave
Parental leave
Medical leave
Short-term disability
Family leave
Military leave
Employer-approved sabbatical
Other legally protected or employer-approved reasons

The lender must determine whether the borrower remains employed, has the right to return to work, and has enough qualifying income to support the mortgage.

The calculation depends heavily on timing.

The lender may treat the income differently depending on whether the borrower will return to regular employment:

Before closing
Before the first mortgage payment is due
After the first mortgage payment is due

The borrower’s regular salary may be usable in one scenario.

In another, the lender may need to use the reduced temporary-leave income or supplement it with eligible cash reserves.

The objective is not to penalize someone for taking leave.

The lender must document the income that will realistically be available when the new mortgage obligation begins.

What Is Temporary Leave?

Temporary leave is generally a short-term, employee-initiated absence that is accepted by law or the borrower’s employer.

Examples may include:

Maternity leave
Parental leave
Adoption leave
Medical leave
Short-term disability leave
Family and Medical Leave Act leave
Employer-approved personal leave
Temporary military leave
Paid family leave

The borrower may receive:

Full regular salary
Partial salary
Short-term disability benefits
Paid family-leave benefits
Paid time off
Vacation pay
Sick pay
A combination of income sources
No income during part of the leave

The lender must identify how much income will be received during the leave and when regular employment income will resume.

Temporary Leave Is Not the Same as Being Unemployed

A borrower on qualifying temporary leave generally remains employed.

The borrower expects to return to the same employer or position after the approved leave period.

This is different from:

Layoff
Furlough
Termination
Resignation
Seasonal unemployment
Employer shutdown
Indefinite leave without a return date

Current Fannie Mae guidance states that mandatory leave initiated by an employer—such as a furlough or layoff—is not considered temporary leave, even when the employer provides an expected return date.

Those situations require a different income analysis.

Fannie Mae’s current temporary-leave guidance explains the distinction and qualifying-income calculations.

Can You Qualify for a Mortgage While on Temporary Leave?

Yes.

A borrower may qualify when the lender can document:

Active employment status
Regular employment income
Temporary-leave income
Expected return-to-work date
Borrower’s intent to return
Right to return to employment
Available cash reserves when needed
Sufficient total qualifying income

The borrower must also satisfy all other mortgage requirements involving:

Credit
Assets
Debt-to-income ratio
Property
Occupancy
Loan program
Insurance
Down payment

Temporary leave affects the income analysis.

It does not automatically change the borrower’s overall eligibility.

What Income Can Be Used?

The amount depends on when the borrower will return to work.

Under current Fannie Mae guidelines:

If the borrower will return to work by the first mortgage payment date, the lender may use the borrower’s regular qualifying employment income.
If the borrower will not return by the first payment date, the lender generally must begin with the lesser of the temporary-leave income or regular employment income.
When temporary-leave income is lower, eligible liquid reserves may potentially supplement it.

This makes the first payment date extremely important.

Two borrowers with the same income and return date may receive different calculations if their closing dates—and therefore first mortgage payment dates—are different.

Why the First Mortgage Payment Date Matters

Mortgage payments generally begin after a delay following closing.

For example, a borrower closing on June 15 may have the first payment due on August 1.

If the borrower returns to regular employment by August 1, the lender may be able to use regular qualifying income under applicable conventional guidelines.

If the return date is October 1, the lender must account for the period during which the borrower is receiving reduced or no employment income.

The lender should establish:

Closing date
Note date
First payment date
Expected return-to-work date
Date regular income resumes
Temporary-leave income
Available reserves

Changing the closing date can sometimes change the income calculation.

Regular Employment Income

Regular employment income is the eligible income the borrower ordinarily receives before taking leave.

It may include:

Base salary
Guaranteed hourly income
Eligible overtime
Eligible commission income
Eligible bonus income
Eligible shift differential
Other qualifying employment income

Each income component must already satisfy its own history and documentation requirements.

For example, being scheduled to return to work does not automatically make newly introduced overtime or bonus income eligible.

Temporary-Leave Income

Temporary-leave income is the amount the borrower will receive during the absence.

It may come from:

Employer-paid leave
Short-term disability policy
State-paid family leave
Paid time off
Sick leave
Vacation pay
Employer benefit plan
Combination of several sources

The lender must document:

Payment amount
Payment frequency
Start date
End date
Benefit duration
Tax treatment when relevant
Whether the payment changes during the leave

Some borrowers receive full salary initially and then reduced benefits.

The lender must evaluate the income available during the relevant mortgage period—not simply the highest leave payment.

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Qualifying When You Return Before the First Payment Date

This is generally the most straightforward temporary-leave scenario.

If the borrower will return to work by the first mortgage payment date, the lender may be able to qualify the borrower using regular employment income.

The lender generally needs:

Confirmation of temporary-leave status
Expected return-to-work date
Borrower’s written intent to return
Documentation of regular income
Employer confirmation
Verbal verification of employment

The borrower may still be on leave at closing.

The important issue is whether regular employment will resume by the first payment date under the applicable guideline.

Qualifying When You Return After the First Payment Date

When the borrower will not return by the first payment date, the lender generally must use the lesser of:

Temporary-leave income, or
Regular employment income

Temporary-leave income is frequently lower than regular income.

That lower amount may increase the debt-to-income ratio and reduce the borrower’s purchasing power.

Eligible liquid reserves may be used to supplement the temporary income under certain conventional guidelines.

Using Reserves to Supplement Temporary-Leave Income

If temporary-leave income is below regular employment income, current Fannie Mae guidelines may allow available liquid reserves to provide supplemental qualifying income.

The basic calculation is:

Supplemental monthly income equals available liquid reserves divided by the number of months requiring supplementation.

The lender first determines the borrower’s available liquid reserves by subtracting:

Down payment
Closing costs
Required debt payoff
Escrow funding
Minimum required reserves
Other funds required to complete the transaction

The remaining eligible liquid assets may be divided over the number of months from the first payment date until regular employment income resumes.

The total qualifying income cannot exceed the borrower’s regular qualifying income.

Temporary-Leave Reserve Calculation Example

Assume:

Regular monthly income: $8,000
Temporary-leave income: $3,000
Total verified liquid assets: $50,000
Funds required for closing and minimum reserves: $30,000
Available supplemental reserves: $20,000
First payment date: August 1
Regular income resumes: December 1

The borrower needs supplementation for four months:

August
September
October
November

Supplemental income calculation:

$20,000 ÷ 4 = $5,000 per month

Total potential qualifying income:

Temporary income: $3,000
Supplemental income: $5,000
Total: $8,000

Because the total does not exceed the borrower’s regular qualifying income, the lender may be able to use $8,000 under the applicable conventional guideline.

This is a simplified example.

The lender must use the actual closing date, first payment date, income, return date, asset eligibility, and loan-program requirements.

Example With Insufficient Reserves

Assume the same borrower has only $8,000 in available supplemental reserves.

Supplemental calculation:

$8,000 ÷ 4 = $2,000 per month

Total potential qualifying income:

Temporary income: $3,000
Supplemental income: $2,000
Total qualifying income: $5,000

The lender cannot simply use the regular $8,000 income.

The lower $5,000 amount may require:

Smaller loan
Lower purchase price
Larger down payment
Debt payoff
Additional eligible co-borrower
Different closing date
Return to work before closing
Another loan program

What Counts as Available Liquid Reserves?

Potentially eligible assets may include permitted:

Checking funds
Savings funds
Money-market accounts
Stocks
Bonds
Mutual funds
Vested retirement assets
Other verified liquid accounts

The lender must apply required adjustments for:

Market volatility
Taxes or penalties
Account restrictions
Borrowed funds
Funds already needed for closing
Required minimum reserves

Gift funds or nonliquid assets may not always be eligible for the supplemental-income calculation.

A large account balance does not mean the entire balance is available.

Maternity Leave and Mortgage Qualification

Maternity leave is one of the most common temporary-leave scenarios.

The lender may request:

Employer leave documentation
Expected return-to-work date
Borrower’s written intent to return
Regular income documentation
Paid-leave documentation
Short-term disability benefit statement
Available reserve documentation
Verbal verification of employment

The lender should not assume that a borrower will leave the workforce because they are having a child.

It must evaluate the borrower’s documented employment status and income under the same applicable standards.

Parental and Adoption Leave

Parental leave may be taken by either parent.

The same general analysis may apply:

Is the borrower still employed?
What income is received during leave?
When will the borrower return?
Does the borrower intend to return?
Will regular income resume by the first payment date?
Are reserves needed?

An employer may structure parental leave using several income sources, including paid leave, accrued vacation, disability benefits, or unpaid time.

The lender must understand the complete payment schedule.

Medical Leave

Medical leave can qualify as temporary leave when:

The borrower remains employed.
The leave is temporary.
An expected return date can be documented.
The borrower has the right to return.
The income calculation satisfies program requirements.

The lender should not need extensive medical details simply to document employment and income.

It may need documentation of:

Leave duration
Expected return date
Benefit amount
Employment status
Borrower’s intent to return

The mortgage analysis focuses on income and continued employment—not the borrower’s diagnosis.

Short-Term Disability Income

Short-term disability benefits may serve as temporary-leave income.

The lender may review:

Benefit statement
Insurance policy
Employer benefit summary
Payment amount
Payment frequency
Benefit start date
Benefit end date
Tax treatment
Bank statements showing receipt
Return-to-work documentation

Short-term disability is not the same as long-term disability income.

Short-term benefits generally bridge a temporary absence before regular employment resumes.

Long-term disability may be evaluated as a separate continuing income source.

Paid Time Off and Sick Leave

A borrower may receive regular pay by using:

Vacation time
Sick leave
Paid time off
Donated leave
Employer leave bank

If the borrower continues receiving full regular income through the relevant period, the temporary-leave calculation may be simpler.

The lender may request documentation showing:

Available leave balance
Payment amount
Duration
Whether full pay will continue
When regular work resumes

A current full-pay paystub does not always prove that full income will continue through the entire leave.

Unpaid Leave

A borrower on unpaid leave may still qualify.

The lender must account for the lack of temporary income.

Potential solutions may include:

Return to work by the first payment date
Use eligible reserves to supplement income
Qualify using co-borrower income
Reduce the loan amount
Pay off eligible debts
Delay closing
Return to work before closing

If the borrower will return after the first payment date and has no leave income, the reserve calculation becomes especially important.

Partial-Pay Leave

Some employers pay a percentage of regular income during leave.

Examples include:

100% pay for four weeks
60% pay for six weeks
50% pay through short-term disability
Unpaid leave after benefits end

The lender must determine which amount applies during the period from the first mortgage payment until regular income resumes.

When payment levels change, multiple documents or calculations may be required.

The lender should not qualify the borrower using the initial full-pay period if the income will later decrease before returning to work.

Variable Income Before Leave

A borrower’s regular income may include:

Overtime
Bonuses
Commissions
Shift differentials
Tips
On-call pay

Those components must already qualify under their own guidelines.

The lender may evaluate whether the borrower will resume the same variable income after returning.

For example, a nurse may historically earn regular overtime but return temporarily on a reduced schedule.

The prior overtime may not be expected to resume immediately.

The lender should use a supported income amount based on the actual return-to-work arrangement.

Returning on a Reduced Schedule

A borrower may return to work:

Part time
With reduced hours
On light duty
With restricted overtime
Under a phased schedule
At a different rate of pay

If the borrower will return at lower income, the lender cannot automatically use the prior full-time amount.

The employer may need to confirm:

Return date
Expected hours
Rate of pay
Duration of reduced schedule
Date full earnings resume
Whether the position remains permanent

The lender must use the income reasonably expected after the return.

No Exact Return Date

A leave described as indefinite or “until further notice” can create a significant underwriting problem.

The lender generally needs an employer-generated expected return date when the regular income is being used.

Documentation may come from:

Employer
Human resources department
Third-party leave administrator
Employer system record
Prior leave correspondence

A borrower’s personal estimate may not be sufficient.

If no return date can be established, the lender may need to qualify using another continuing income source.

Employer Uses a Third-Party Leave Administrator

Many employers outsource leave administration.

The lender may accept documentation from an employer’s authorized third-party administrator confirming:

Leave status
Duration
Expected return date
Benefit amount
Employment relationship

Examples may include companies administering:

Short-term disability
FMLA leave
Paid family leave
Employer disability plans
Workers’ compensation leave

The lender should verify that the administrator is acting on behalf of the employer.

Written Intent to Return to Work

Current Fannie Mae guidance requires written confirmation from the borrower of the intent to return to work.

A simple statement may be sufficient:

I am currently on employer-approved parental leave and intend to return to my position with ABC Company on October 1, 2026.

The statement should be:

Accurate
Dated
Consistent with employer documentation
Signed when required
Limited to relevant employment facts

The borrower should not provide a return date that conflicts with the employer’s records.

Employer Confirmation

The employer or authorized leave administrator may need to confirm:

Borrower remains employed
Leave is temporary
Expected return date
Current employment status
Regular income
Temporary-leave income when employer-paid
Right to return
Any expected change in compensation

The lender must not receive information indicating that the borrower has no right to return after the leave period.

If the employer cannot confirm continued employment, the regular income may not be usable.

Verbal Verification of Employment

The lender generally completes a verbal verification of employment before closing.

If the employer confirms the borrower is on qualifying temporary leave, current Fannie Mae guidance treats the borrower as employed.

The verification may also confirm:

Employer
Employment status
Position
Leave status
Expected return
No known termination

A borrower should provide accurate contact information for the employer or leave administrator.

Employer-Initiated Furloughs

An employer-mandated furlough is not generally treated as temporary leave under Fannie Mae’s definition.

A furloughed borrower may expect to return, but the absence was initiated by the employer rather than elected or approved as personal leave.

The lender may need to evaluate:

Current income
Unemployment benefits
Recall date
Employer status
Other qualifying income
Loan-program requirements

An expected recall date does not automatically make full regular income usable.

Layoffs

A borrower who has been laid off is not on temporary leave.

Even if the employer says rehiring is possible, the borrower generally lacks active employment income unless:

Another job begins
An eligible employment offer is available
Other qualifying income supports the loan
A different loan structure is used

Unemployment compensation from an ordinary layoff is generally temporary and may not qualify as continuing income.

Seasonal Layoffs

Seasonal layoffs are evaluated under seasonal-income guidelines rather than temporary-leave guidelines.

A borrower may be able to use recurring employment and unemployment benefits when:

A sufficient seasonal history exists.
The layoffs are predictable.
Benefits recur.
Income is properly documented.
The employment pattern is likely to continue.

Workers’ Compensation

Workers’ compensation may require its own analysis.

The lender may need to determine:

Payment amount
Expected duration
Whether the borrower remains employed
Return-to-work date
Whether benefits are temporary or long term
Whether regular employment will resume
Whether the income is taxable

A temporary workers’ compensation benefit may be treated differently from permanent disability income.

The exact treatment depends on the loan program and supporting documentation.

Military Leave

A borrower may temporarily leave civilian employment for military service.

The lender may evaluate:

Civilian employment status
Right to return
Military income
Civilian income
Duration of leave
Deployment or orders
Expected return date
Which income will continue after closing

The borrower may receive military income that replaces or supplements civilian pay.

The lender must avoid counting both incomes beyond the period they will actually overlap.

Employer-Approved Sabbatical

A sabbatical may qualify as temporary leave when:

The employer approves it.
The borrower remains employed.
The leave has a defined duration.
The borrower has a documented return date.
Income during the leave is known.
The borrower intends to return.

A lengthy unpaid sabbatical may require substantial reserves or qualification using other income.

An indefinite career break without a protected position or confirmed return date may not satisfy temporary-leave requirements.

Leave From a New Job

Temporary leave shortly after starting a new job can require additional analysis.

The lender may review:

Employment history before the new job
Time in the current position
Compensation
Leave eligibility
Employer confirmation
Return date
Income received during leave
Whether the position remains permanent

The borrower may have stable base income but insufficient history for new overtime, bonus, or commission income.

Temporary Leave From a Second Job

A borrower may be on leave from one job while continuing another.

The lender must evaluate each income source separately.

If second-job income is needed to qualify, the lender may need to confirm:

History of maintaining both jobs
Leave income
Return date
Whether the borrower will resume both positions
Whether the combined schedule remains sustainable

A temporary leave can interrupt the required history for supplemental employment income.

Self-Employed Borrowers Taking Leave

Self-employed borrowers do not always have a formal employer leave policy.

The lender may need to determine:

Whether the business remains active
Whether revenue continues
Who manages operations during the absence
Current profit-and-loss results
Business liquidity
Whether the borrower’s income declined
Whether the borrower has returned to active management
Whether future earnings remain stable

A business continuing to generate revenue does not automatically mean the borrower’s qualifying income remains unchanged.

The lender may require updated business documentation.

Related resource: Self-Employed Mortgage Guide.

Conventional Loan Treatment

Current Fannie Mae guidelines generally require:

Documentation of regular qualifying income
Documentation of temporary-leave income
Borrower’s written intent to return
Employer-generated expected return date
Verification that the borrower remains employed
Verbal verification of employment
Income calculation based on the first payment and return dates
Reserve supplementation when applicable

The lender cannot simply ignore known temporary-leave status when the affected income is needed to qualify.

Automated underwriting approval does not eliminate the lender’s responsibility to calculate the income correctly.

FHA Treatment

FHA may permit a borrower on temporary leave to qualify when employment, income, and return-to-work information are adequately documented.

The lender may analyze:

Pre-leave income
Leave income
Expected return date
Employer verification
Available reserves
Income needed for approval
Applicable HUD requirements

The FHA calculation may differ from conventional guidelines.

The lender should review the current HUD handbook and any investor overlays before issuing a dependable approval.

Related resource: FHA Mortgage Qualification Guide.

VA Treatment

VA underwriting evaluates whether income is stable, reliable, and anticipated to continue.

For a borrower on temporary leave, the lender may consider:

Employment status
Leave income
Return-to-work date
Regular income after return
Cash reserves
Residual income
Overall financial profile

Strong residual income may support the overall file, but the lender must still document an acceptable qualifying income amount.

Related resource: VA Mortgage Qualification Guide.

USDA Treatment

USDA may evaluate temporary-leave income for both:

Repayment qualification
Annual household-income eligibility

The income used to determine repayment ability may differ from income included in the household eligibility calculation.

The lender must document current and anticipated income according to USDA requirements.

Related resource: USDA Mortgage Qualification Guide.

Jumbo and Portfolio Requirements

Jumbo lenders may impose more conservative requirements, including:

Return to work before closing
Current paystub after return
Larger reserves
Lower debt-to-income ratio
Direct employer verification
Exclusion of reserve supplementation
Additional benefit documentation

Portfolio lenders may provide alternative options based on:

Borrower assets
Down payment
Credit
Other household income
Employment history
Strength of the return-to-work documentation

Not every lender offers the same temporary-leave flexibility.

Does the Lender Have the Right to Ask About Future Leave?

Current Fannie Mae guidance states that when a borrower is not currently on temporary leave, the lender must not ask whether the borrower intends to take leave in the future.

If the lender learns through the normal employment or income verification process that the borrower is currently on leave, it must apply the temporary-leave requirements.

The lender should focus on documented employment and income—not assumptions based on:

Pregnancy
Family status
Medical condition
Gender
Age
Disability
Other protected characteristics

What Happens if Leave Begins During Underwriting?

If the lender learns that the borrower is currently on leave and the income is needed, the file must be updated.

The lender may request:

Leave documentation
Temporary income information
Return date
Borrower intent letter
Employer verification
Updated asset statements

The debt-to-income ratio may need to be recalculated.

The change does not automatically cause denial, but it cannot be ignored.

What Happens if the Return Date Changes?

A delayed return can affect:

Qualifying income
Reserve supplementation
Debt-to-income ratio
Final approval
Closing date
Loan program
Interest-rate lock

The borrower should notify the lender immediately if the return date changes.

The lender may need:

Updated employer documentation
New leave-benefit schedule
Recalculated reserve supplementation
Updated underwriting approval

A delay from before the first payment date to after it can materially change the income calculation.

What Happens if the Borrower Does Not Return?

If the borrower does not intend to return to employment, the regular income cannot be used as though it will resume.

The loan may need to be restructured using:

Other borrower income
Co-borrower income
Lower loan amount
Larger down payment
Debt payoff
New employment
Alternative financing

Knowingly closing based on income that the borrower no longer expects to receive creates a serious accuracy and mortgage-fraud concern.

Documents You May Need

A borrower on temporary leave may need:

Recent pre-leave paystubs
Current paystubs
W-2 forms
Written verification of employment
Verbal verification of employment
Employer leave approval
Third-party administrator documentation
Expected return-to-work date
Borrower’s written intent to return
Leave-income schedule
Short-term disability statement
Paid family-leave documentation
Paid-time-off records
Workers’ compensation documents
Military orders
Bank statements
Investment statements
Retirement-account statements
Reserve documentation
Updated return-to-work confirmation
Paystub after returning when required

The lender should request only the information necessary to document employment, income, assets, and return timing.

Real-World Temporary-Leave Scenarios

Borrower Returns Before the First Payment

A borrower closes in June, has a first payment due August 1, and returns from parental leave on July 15.

The lender may be able to qualify the borrower using regular employment income when the return date and other requirements are documented.

Borrower Returns Three Months After the First Payment

A borrower receives $3,000 per month during leave but ordinarily earns $7,000.

The borrower will not return until three months after the first payment.

The lender may use eligible liquid reserves to supplement the reduced leave income, subject to the applicable calculation.

Borrower Has No Leave Income

A borrower is on unpaid parental leave and returns after the first mortgage payment.

The borrower may need enough eligible reserves to support qualifying income during the unpaid period or may need another loan structure.

Nurse Returns With Reduced Hours

A nurse earned full-time income plus overtime before medical leave but will initially return part time with no overtime.

The lender must use income supported by the actual return arrangement rather than assuming immediate restoration of full historical earnings.

Employer Delays the Return Date

The borrower’s return date moves from July 15 to September 15.

The lender must update the income and reserve calculations.

If the first payment is due August 1, the delay may change which income can be used.

Employee Is Furloughed

An employer places the borrower on a mandatory furlough and provides an estimated recall date.

This is not treated as ordinary employee-initiated temporary leave under current Fannie Mae guidelines.

A different income analysis is required.

Common Misconceptions

“You Cannot Get a Mortgage While on Maternity Leave”

You may qualify while on maternity or parental leave when employment, income, return date, and reserves are documented appropriately.

“The Lender Must Use My Full Salary”

The full regular income may be usable when the borrower returns by the first payment date.

Otherwise, a reduced-income or reserve-supplement calculation may apply.

“Temporary Leave Means I Am Unemployed”

A borrower on approved temporary leave generally remains employed.

A layoff or furlough is different.

“My Return Date Does Not Matter”

The return date can determine whether regular income, temporary income, or a supplemented amount is used.

“All Money in My Accounts Can Supplement Income”

Only eligible liquid assets remaining after closing costs, down payment, required reserves, and other obligations may be available.

“The Employer Must Provide My Medical Diagnosis”

The lender generally needs employment, leave, income, and return-date documentation—not unnecessary medical details.

“A Verbal Return Date Is Enough”

The lender generally needs employer-generated or authorized administrator documentation supporting the expected return date.

“Automated Approval Means the Leave Does Not Need to Be Disclosed”

If the lender becomes aware that the borrower is currently on temporary leave and the income is needed, the income must be evaluated correctly.

Real Lender Perspective

Temporary leave is usually manageable when the dates and income are identified early.

The most important questions are:

Is the borrower still employed?
What is the regular qualifying income?
What income will be received during leave?
What is the documented return date?
Does the borrower intend to return?
Will regular income resume before the first payment?
If not, how many months require supplementation?
How much eligible liquidity remains after closing?
Will the borrower return at full pay and hours?
Does the loan program permit the proposed calculation?

The most common mistake is assuming that the borrower’s normal salary can always be used because employment still exists.

The timing of the return and the amount received during leave can materially change the calculation.

A properly structured review may show that the borrower qualifies with regular income, reduced income, reserve supplementation, or another household income source.

Who This Guide Is For

This guide may be especially helpful for borrowers on:

Maternity leave
Parental leave
Adoption leave
Medical leave
Short-term disability
Family leave
Employer-approved personal leave
Military leave
Paid family leave
Unpaid temporary leave
Phased return-to-work schedules
Other short-term employer-approved absences

Final Thoughts

Temporary leave does not automatically prevent mortgage approval.

The lender must establish that the borrower remains employed, has the right and intention to return, and has sufficient qualifying income for the period when the mortgage payments begin.

The key factors are:

Regular employment income
Temporary-leave income
First mortgage payment date
Expected return date
Income after returning
Available liquid reserves
Loan-program requirements

A borrower returning by the first payment date may be able to qualify using regular income.

A borrower returning later may need to qualify using reduced leave income supplemented by eligible reserves.

Reviewing the leave schedule before making an offer can prevent an avoidable change during underwriting and create a mortgage strategy that reflects the borrower’s actual income throughout the leave period.