ALIMONY AND CHILD SUPPORT INCOME
Short answer
Alimony and child support can count as qualifying income with documented proof of receipt and evidence it continues. If you are the one paying, some programs let you subtract it from your income instead of counting it as a debt — which can change your ratios significantly.
Ask about your actual file — no SSN, no credit pull.
With the current financial climate and the stress everyday life can bring, unfortunately the first quarter of the year has become the peak season for divorces. It always pains me to see anyone have to go through that process. I, having gone through that process myself, wanted to share how someone in this situation might be able to use Alimony or Child Support as income when getting a mortgage.
Nathan Young of North Star Mortgage Network in Jacksonville, Florida documents alimony and child support as qualifying income with the court order and a verified receipt history, because continuance is the test agency underwriting applies. Guidelines vary by program, and all loans are subject to credit approval.
When a married couple splits, typically one if not both have to find new housing. Amicable or not, we can handle both the refinance, to take one off the deed of the existing home and the purchase of a new home for the one leaving the marital home. We DO NOT share information.
Here are the loan types and what need to be verified in order to us Alimony and or Child Support.
FANNIE MAE & FREDDIE MAC
6 months must have been received and verified.
Voluntary payments are not allowed.
Must have 3 year continuance.
FHA
3 months must have been received for mandatory payments.
Voluntary payments require 12 months receipt.
The rate quote takes no Social Security number and no credit pull. Nathan Young, NMLS #325206 · North Star Mortgage Network, Inc. NMLS #356789 · Jacksonville, FL · Serving Florida since 2000. All loans subject to credit approval.
Must have 3 year continuance.
If payments are consistent on the 3 month mandatory or 12 month voluntary you can use those amounts. If they are not consistent every month you take the last two years and average the amount paid and use that for DTI.
VA
VA does not give a specific time period.
VA says the following are considered via the written agreement:
1 – Length of time payments have been received.
2 – Regularity of receipt.
3 – Availability of procedure to compel payment.
That being said, using FHA rules is a sound judgment.
USDA
12 months receipt required BUT “can” be less if the underwriter deems it acceptable.
Standard will definitely be 12 months.
Must have 3 year continuance.
Nathan Young is the founder and president of North Star Mortgage Network, Inc., an independent mortgage brokerage in Jacksonville, FL serving all of Florida since 2000. Call or text direct: 904-880-6741. Office: 904-880-6741. Nathan Young NMLS #325206 | North Star Mortgage Network, Inc. NMLS #356789 | nsmn.com
This article is for general education only and is not legal, tax, or financial advice. Agency guidelines may change, and individual lender overlays can be stricter than agency requirements. Available for qualified borrowers; program guidelines apply. This material has not been reviewed, approved, or issued by HUD, FHA, or any government agency. North Star Mortgage Network, Inc. is not affiliated with or acting on behalf of any government agency. All loans subject to credit approval. North Star Mortgage Network, Inc. | NMLS #356789 | Jacksonville, FL | nsmn.com | 904-880-6741
Paying support and behind? See past-due child support and FHA loans.
More family mortgage topics: gifts, co-borrowers, buying for a parent, divorce and inherited homes are all in one place in our Family and Mortgages in Florida guide.
