Will temporary leave/disability cause a mortgage to be denied?

Not a yes or no question but one that depends on a few factors.

1. What is the total time you will be out of work and are you guranteed the same terms of employment upon return?

2. How long after the close of escrow will you return to work?

3. Are you receiving any temporary leave/disability income ?

If the return to work date is PRIOR to the first payment date, then the lender should be able to use your income, considering all other factors meet loan requirements.

If the return to work date is AFTER the first payment date, then the underwriters are likely going to use the lesser your temporary leave/disabilty income or your employment income. If you are not receiving any temporary assitance, they will likely $0/mo for your application and now you are in quite the predicament. One way to work around this is to show the underwriter that you will have sufficient monies (i.e. reserves) to cover the mortgage payment from the closing until your return to work date. This will require proof sufficient reserves AND a letter from the employer stating you will still have employment, with the same terms, upon your return.