Positive COVID Test Won't Prevent Mortgage

Misbar's investigation found that a fear of loans being denied due to positive COVID-19 testing has been circulating, but there does not appear to be any evidence of mortgages being denied due to positive tests. According to USBank.com, at least in the United States, information that is typically needed for mortgage approval includes paycheck stubs from the last 30 days, W2 or I-9 forms for the past two years, bank account or other asset information, and real estate property information. 

In the approval process, as the mortgage gets closer to actually being approved, the Home Buying Institute suggests the following information may also be needed: social security number, proof of employment, proof of income, tax documents, place of residence, bank account information, credit information, purchase agreement, gift letters, monthly expenses, and self-employment documents. 

HSA, a consumer mortgage information repository, suggests only the following are needed for mortgage approval: 

However, if you have contracted COVID-19 and are thus unable to pay your bills, this could have an indirect impact on the ability to get a loan approved. According to AARP, the pandemiic has made it hard for many people to pay their mortgage.

The Federal Trade Commission explains that if you don’t pay your mortgage on time or if your payment is for less than the amount that’s due, you’re in default of your loan. The consequences of a defaulted loan could then mean damage to your credit score and denial of a future mortgage. 

Misbar did not find any evidence that medical record documentation, including COVID-19 test results, is a requirement for mortgage approval.