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.

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.

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.