Shopping for a house while you're pregnant often multiplies the obstacles to buying a home.
One concern is that real estate agents and lenders may think you can't afford the property because you might stay home or earn less after the baby arrives.
That's not okay, according to federal and state laws. They protect homebuyers from discrimination on the basis of pregnancy. Here's a review of the laws aimed at shielding homebuyers from illegal conduct.
Federal and state laws protect pregnant buyers
Pregnancy is protected under the Fair Housing Act, said Casey Gaddy, an agent at The Gaddy Group in Philadelphia. The Fair Housing Act prohibits housing discrimination based on several factors, including gender and race.
“No one — not a seller, landlord, lender, not even your agent — can treat you differently because you’re expecting,” he said. It includes asking invasive questions, making assumptions about your finances related to your pregnancy, or telling clients where they think the best neighborhoods for families are, he said.
“This behavior is a violation and can land your agent or lender in some serious hot water, such as fines or even lose their license if they are repeat offenders,” Gaddy said.
Pregnant women can also be protected under state laws. For instance, Virginia's Fair Housing Law forbids institutions — "a bank, savings institution, credit union, insurance company or mortgage lender" — from discriminating against a woman based on her "family status," which includes pregnancy.
Here's what you should know about the loan process:
Can a lender deny my application because I'm pregnant?
No. The federal Fair Housing Act prohibits lenders from denying a mortgage loan because an applicant is pregnant or on leave, according to the Fair Housing Center for Southeast & Mid-Michigan, a nonprofit organization operating in Lansing, Michigan. Lenders also can’t force them to return to work, assume they won’t or delay closing until they do, the group added.
Do I have to tell a real estate agent or lender that I’m pregnant?
No. And they can’t ask about future planning or maternity leave, the center said. But it’s still a good idea to disclose, said Megan Sills, a former mortgage underwriter who is a real estate agent in Alexandria, Virginia, with eXp Realty. A lender will probably find out from your documentation if you applied for leave, she said, and you may want to ask them about how your pregnancy and leave affect your financial situation.
Will my lack of income during maternity or paternity leave factor into my loan?
No. Federal law requires lenders to treat leave as a short-term disability that won’t keep an employee from resuming their job.
Can a lender ask me to verify that I will return to work?
Yes. Lenders can ask a pregnant applicant to provide a letter from her employer documenting her intent to return to work, along with a start date, said Mike Oswald, a mortgage lender at New American Funding in Denver.
What if I change my mind and don’t return to work? Do I have to tell the lender?
No. An applicant already qualified for the loan based on the information available at that time, Sills said. The lender doesn’t care as long as you keep making the mortgage payments, she said.
Here's what to do if you feel you've been discriminated against:
People reporting discrimination should take several steps to document their claim, according to the Housing Equality Center of Pennsylvania, headquartered in Fort Washington, Pennsylvania.
- They should save all materials containing discriminatory statements or discriminatory treatment, including emails, texts and other digital communications.
- Discriminated individuals should create a timeline of events, including dates and times, starting from when they first inquired about housing, the Housing Equality Center of Pennsylvania said.
- Write a detailed report of what happened and make a list of any witnesses, including their contact information. Note what they will likely discuss about the event or the damages you suffered.
- Save a copy of any ads listing the property and try to find the name of the person you believe discriminated against you.
- Document the names of property owners, landlords, real estate agents, mortgage lenders, insurance providers, homeowner or condo association, the Housing Equality Center of Pennsylvania said.
Housing officials say complaints can be filed at your regional U.S. Department of Housing and Urban Development office. They recommend filing a complaint as soon as possible due to the statute of limitations, which requires plaintiffs to file a lawsuit within a certain amount of time after the action occurred.