Child Support and Spousal Support Income

When borrowers want to qualify for home loans using child support and/or spousal support income, here are the general require documents from most lenders:

  • Divorce decree: Underwriter will need to review the entire divorce decree to support monthly payment the borrower is awarded for.
  • Proof of continuous: Underwriter will need proof to support that this income will continue for minimum of 3 years from the time the loan closes. Child and spousal support will eventually end at some point. For example, the obligator might not need to pay child support as soon as the child turns 18. If this verbiage appears on your divorce decree (most likely it does), lenders might require you to provide a copy of the children’s birth certificate. This document will provide the child date of birth in order to support continuous.
  • Proof for receipt of income: Just because the court orders the obligator to pay doesn’t always mean that he/she will pay.  Depending on the loan programs you are applying for, some lenders require most recent 12 or 3 months proof for receipt of income to support income used. Here is what you can provide in order to support receipt of income:–If payments are paid through the states, you can go to child support services official websites and request for copies of the payment history.
    –Copies of bank statements showing income directly deposited from the obligator
    –Copies of cancelled checks (back and the front) from the obligator

3 thoughts on “Child Support and Spousal Support Income

  1. Bean on

    Bean on December 13, 2013 at 7:10 pm said:
    Your comment is awaiting moderation.
    Going for fha loan , home purchase amt 193000.00 , 50,000 down, credit score 760, gross income 1600.00 and child support income 1500 a month. What are the changes on getting aprove.
    Another question, revived child support from May to sept in cash , after reviewing with lawyer , we want it to record by checks , so I gave the money back to my husband , and he wrote checks backed dated from May through June , and I deposited them all back to account so we have a record and since Oct , I’m back on track with depositing in check instead of cash, will underwrites look
    At my May-sept checks valid , although they were deposited in sept , also by dec, I will have 8 child support Cks deposited, will they count all 8 or just the oct – dec ones?

    • Underwriter on

      First of all, why would you go for FHA if you are putting almost 25% down? Your loan to value is going to be at 74% and it is low enough to apply for conventional loan. FHA will require upfront and monthly mortgage insurance.

      Assuming you are getting a 30 year home loan at 5% APR, your monthly principal and interest payment will be approximately $767.65; homeowner insurance is approx $61/month and taxes is approx $201/mo. Your total monthly mortgage payment will be approx $1030/month. If you have no other obligation reflected on your credit report (including credit card or auto loans), you will definitely need child support income for qualifying.

      Most lenders will require a minimum of receiving 12 months in child support income for qualifying. In some circumstances, most recent 3 months is acceptable. When you received child support income in cash from 5/13-9/13, did you deposit the exact amount into your bank account? If you did, you should be able to make it work by providing an explanation to the lender.

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