A Helpful Option for Borrowers on Maternity Leave or Temporary Leave
Buying a home in Michigan isn’t always a straight path, especially if you’re stepping into the process during maternity leave, short-term disability, or any temporary reduction in income. The good news? Michigan homebuyers now have an additional tool to help bridge that income gap and keep their mortgage approval on track.
We allow the use of leftover funds, money remaining after your down payment, closing costs, and required reserves, to be used as Supplemental Income when you’re temporarily out of work and planning to return.
If your closing date happens before you officially return to work, and you have leftover funds available after all required costs are covered, those funds can be divided by the number of months until you return. The resulting number becomes the monthly Supplemental Income that can be used for qualifying.
This is especially valuable for Michigan families where maternity or medical leave pay may be significantly lower than their normal salary.
Example
- Leftover funds after closing & reserves: $5,000
- Time before returning to work: 2 months
- FHA max allowed: 60 days
Calculation:
$5,000 ÷ 2 months = $2,500 per month in Supplemental Income
That $2,500 can now be added to qualifying income for those two months, helping Michigan homebuyers stay mortgage-eligible even with reduced temporary income.
Michigan is a state with a diverse workforce, teachers, healthcare professionals, auto industry workers, small-business owners, and parents juggling it all. Temporary leave happens, but that shouldn’t delay your ability to buy a home.
Perfect for These Situations
- Maternity leave
- Short-term disability leave
- Seasonal work gaps
- Medical leave
- Temporary reduced earnings
In a competitive Michigan real estate market, where timing matters, this option can make the difference between securing the home you want now versus waiting months for income to return to normal.
