Qualifying for Mortgages Using Alimony and Child Support Income

Qualifying for Mortgages Using Alimony and Child Support Income

As a mortgage lender and my guest mortgage person, George Soutu has mentioned before the need to document the continuance of income, when buying a home, for at least three years from the date of closing on a mortgage.  That is what lenders MUST see before they lend you money for a mortgage if that is considered part of your income.   As my guest mortgage blogger, George will share the details of this when you are attempting to apply to buy a home and qualify for a mortgage in RI real estate and beyond.  One of the income sources that continuance of income for three years needs to be proven is when Using Alimony & Child Support Income To Qualify For A Mortgage. 

We live in a time that single parent households are very common, so it is not unusual for Alimony & Child Support income to be used by a divorced spouse in order to qualify for a mortgage.  It is very important to be familiar with the guidelines on the use of Alimony and Child Support Income, and the required documentation as a home buyer and real estate agent.

In order to be able to Use Alimony & Child Support Income To Qualify For A Mortgage, the Borrower will need to provide the following documentation to the lender:

• Final Divorce Decree, or
  
• Legal Separation Agreement, or
  
• Court Order, or
• Voluntary Payment Agreement.  This one is tough to use, because if it is voluntary, then it can stop at any time but this agreement is required by the court.

• Provide proof that payments have been received consistently for the past 12 months, and will continue for a MINIMUM OF 3 YEARS from mortgage application time. 

• Most Child Support is only court ordered until the child turns 18.  That means that once the child turns 15, child support can no longer be used as income to apply for a mortgage, because there is less than 3 years remaining from the day after the child turns 15.  Exceptions can be made in the case of a recent divorce if payments have been received for the first 3 months.  Acceptable proof of payment can be:

• • Canceled checks for 12 months
    
  • Deposit Slips for 12 months
    
  • Tax Returns
  • Court Records

NOTE: Child support can be grossed up by 25% if it is considered non-taxable income.

The three year continuation rule usually comes as a surprise to most Borrowers Using Alimony & Child Support Income To Qualify For A Mortgage, so it is important that borrowers understand the mortgage guidelines upfront and early in the home buying process.

 If you are a parent thinking about buying a home and either alimony and child support income is part of your qualifying income call me so I can put you in touch with a knowledgeable local lender who can walk you through this process.  My job is to give you good home buying advice so when it comes to the mortgage process I will direct you to great mortgage RI lenders who know their lending business well.

 Thank you George Soutu for bringing this lending information to the forefront for my home buyers.  As a RI coastal real estate agent it is imperative to me that I do this with all my RI house hunters and I need to remind all real estate agents I work with to do the same.  

Here are some other past mortgage posts by George Soutu to read and help you with your mortgage questions and needs:

WHY SO FEW VA MORTGAGES ARE OBTAINED BY VETERANS?

How Does Divorce Affect Mortgage Borrowing | Must Knows

WHAT MORTGAGE COSTS CAN I EXPECT WHEN PURCHASING A HOME?

Qualifying for Mortgages Using Alimony and Child Support Income

 

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Info about the post author and guest blogger, George Soutu:
Is a mortgage Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com.

I appreciate George’s shares on mortgage information in the current real estate times with my web site readers at www.RIHouseHunt.com

Rhode Island real estate agent and licensed RI real estate agent, Ginny Lacey Gorman, helps list homes and waterfront property in Rhode Island at 401-529-7849 or email me at Ginny@RiHouseHunt.com.