How is child support and alimony treated for qualifying for a mortgage?

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How is child support and alimony treated when qualifying for a mortgage?

Jason Conger Financial Advisor

Answered By

Jamie Minster

Mortgage Loan Officer

jamie@jamieminster.com

 

Question

How is child support and alimony treated when qualifying for a mortgage?

 

Answer

 

In order for support to be utilized as qualifying income, the following criteria are required.

  • It has been received for:
    • 6 months, with a conventional loan
    • 3 months with a VA loan
    • 12 months with a USDA loan
    • 3 months with an FHA loan
  • It must continue for a minimum of the next 3 years after the closing date.
  • It is documented with a divorce decree, separation agreement, court-ordered or other legal written document is in place.
  • Voluntary payments are not typically acceptable.
  • Proof of receipt is required, by way of canceled checks or bank statements.