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Child Support and Mortgages
Counted as Income - As a Monthly Liability – As a Condition
Income - Child Support can be counted as income for mortgage qualifications. Here is what you need to have child support counted:
- 12 months of documented payments. This can deposits into your bank or debit cards or state agency record.
- An Official Order. This can be a court order child support decree or an state administrative agency determination.
- Continuation of the child support for 3 years. The child for whom you are receiving child support has to be entitle to get it for the next 3 years. This can be either a birth certificate or the court order – decree listing age of the child and the date when the child support ends. Ordinarily, lenders stop counting when the child turns 18th.
Here is what you have to provide to have your Child Support income counted:
- An official court or administrative agency order;
- Bank or Debit card deposits for 12 months
- Proof of age of child receiving child support or an official order listing the age of the child and when the support payments end.
Child Support as a Monthly Debt. If you have child support payments, these will be counted as a liability and may reduce that amount you can borrow.
Child support can either be deducted from your pay stub or paid separately. Bank underwriters tend to find out you are paying child support. They review 2 months of your bank records. And, recurring payments (more than 1) unless made to a cell phone or utility, will probably require an explanation.
Here is what you have to provide if you have Child Support Payments:
- An official court or administrative agency order.
Child Support in Collections
If you have fallen behind on your child support payments and have it listed on your credit report as a collection, you have to be current (no money past due) and have made 3 prior payments.