Mortgage Income Requirements - Alimony and Child Support Income for Qualification

By
Mortgage and Lending with Your Tampa Bay Mortgage Source

Divorce DecreeMany individuals, in Tampa Bay and throughout Florida,  going through a divorce or seperation find themselves faced with the task of qualifying for a mortgage loan with alimony and/or child support income

In some circumstances, one spouse is to be awarded alimony and/or child support as part of the divorce decree.  With this income, they now may need to purchase a home, in Tampa Bay Florida, with their new source of income.  When it comes to conventional financing, there are a few basic guidelines to follow to know if you can use your alimony and/or child support income as qualification for a new mortgage.

1.  Alimony and/or child support must be considered as stable income for qualifying for a mortgage

The lender writing the new mortgage loan will be responsible for documenting the income as stable.  Lenders do this by documenting the future payment schedule and the past receipt of said payment.

2.  Alimony and/or child support must continue for at least 3 year after the date of mortgage application

Most lenders will accept a divorce decree or seperation agreement which outlines the amount of the award and the time period it will be recieved as documentation.

3.  Alimony and/or child support must have been received for the past 6-12 months

Acceptable evidence of receipt of funds are bank statements, court documents, IRS Tax forms, or deposit slips.  More documentation methods are available for the particular circumstances of the income.

These documentation guidelines lay out the standard qualifications for income documentation.   Lenders will vary on their required documentation and you should consult your Tampa Bay mortgage professional for specific requirements.

If you are exploring your mortgage loan options as a divorced or seperated individual, contact your Tampa Mortgage Professional, Leah Ross.

~Read more information on Mortgage Qualifying on My Tampa Mortgage Blog

Comments (33)

Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL

Leah - GREAT ARTICLE!!!  This is more common than not for buyers these days.  You just gave us all some new info to share as needed... YOU GO GIRL!!!

Jun 27, 2007 01:57 AM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
PS....CONGRATS on the FEATURE!!!
Jun 27, 2007 01:58 AM
Michael Delp
Mortgage Pro - Telford, PA

Another thing to remember when using child support alimony or social security is that most lenders will allow you to gross up that income by 25% because it is moneys recieved after taxes.

Jun 27, 2007 02:04 AM
Anonymous
Anonymous

In Canada the rules of qualifying the income are not as labourism.  The Lender Community usually only look for verification by Court Ordered doc's including Separation or Divorce Degree.  Cash or verbal agreements do not qualify regardless if there can be a track record shown via bank books etc.

Needless to say as the client / purchasers Trusted Advisor regarding financing I cannot stress on the clients enough that if they need a good portion of this type of income to qualify that they themselves have to be confident that it is going to continue thru the term of the mortgage.

Just as important as having to prove it, will it continue on a consistent basis?

Jun 27, 2007 02:27 AM
#17
David A. Podgursky PA
THE PODGURSKY GROUP @ Re/Max Direct - Boynton Beach, FL
THE PODGURSKY GROUP - Make the Right Move!

Leah: YAY! GO Grasshopper! Good job!

I hope this makes the Mortgage WIR ;)

 

Chris - try Blackmail!

Jun 27, 2007 02:43 AM
Jordan M. Mackey
Overland Park Real Estate (No association with Inc) - Overland Park, KS
Overland Park Real Estate ::
Thanks for the information I didn't know all this extra stuff was included in a mortgage application... :-P
Jun 27, 2007 03:59 AM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate
Way to Leah. one AR feature and I am sure the others did not realize that you had a localism feature the day before!
Jun 27, 2007 07:04 AM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
Thanks Leah....my ex would have been treated like a Queen in Florida! 
Jun 27, 2007 09:47 AM
Jack Haydon
Charles Rutenberg Realty - Clearwater Beach, FL
Clearwater Beach Condos - Real Estate Homes for Sale

Leah,

I'm glad you are handling our customers, so i don't have to know any of this; you just handle it and tell me if they will be able to get a loan.

Jack 

Jun 27, 2007 01:58 PM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Tom W, thanks for the comment! 

Tom B, I know, it's personal, but it helps us plan for the future....ahhh...the life of a consultant

Matt, done deal :)

Jeff, thanks for the comment! Like i mentioned to Tom B, we have to do what we have to do!  Thanks for the kudos on the feature!

Gary,  I agree and am trying to get more information out there!  Thanks for the comment~

Susie, thank you!!!  And for your continued support!

Jun 27, 2007 02:12 PM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Michael, thanks for the comment.   Our guidelines say as long as we prove it is not taxable (via tax returns), then yes, we can gross up those amounts.  Much more common with social security income too!

Anonymous Commentor ~ We do require documentation so that we can make the decision it will be "stable" in the future.  I appreciate you sharing some other regulations from other areas!

David, THANK YOU!!  I appreciate your feedback!  Chris, you may have to start a "special" blog for the more personal topic :)

Jordan, thanks for the comment!  Glad I am able to fill youir brain!

 

Jun 27, 2007 02:18 PM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Neal, thanks for the kudos!  It's shaping up to be a good week here in MortgageVille!

George, thanks for the comment!  So is being a queen good?

Jack, you know I will try to tell you the whole story anyway :)  I can't stop!  I am happy to work with you!!

Jun 27, 2007 02:20 PM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Leah - congrats on being recognized as a valuable mortgage professional here on Active Rain and Localism - looking forward to more great articles.
Jun 27, 2007 03:05 PM
George Tallabas
RE/MAX Advantage - Nampa, ID
Idaho Real Estate
Well Leah....I would not know if being a Queen would feel like....LOL 
Jun 27, 2007 04:04 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
This is good information that some folks forget about when it comes to getting a loan.
Jun 27, 2007 05:59 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
Great job Leah!  These kind of factors aren't understood or talked about all that much, it's nice to see you outlined them and addressed them pretty darn well.
Jun 27, 2007 11:44 PM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Cyndee ~ Thank so much! 

Geroge, I can give you the Pricess view :)

Bob & Carolin - Thanks for the comment

Jason, thanks so much!

Jun 28, 2007 06:07 AM
Loretta Buckner
Real World Properties, Inc.| Your Real Estate Consultant for Life - Palm Harbor, FL
Your GREEN Real Estate Consultant For Life!

Leah, I sure wish I had you on my side when I applied for my first loan...

GREAT POST!

 

Jun 28, 2007 11:47 AM
Katrina Madewell
Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL
Tampa FL Homes for sale | Tampa Bay - (813) 777-1196
THIS IS REALLY IMORTANT mortgage informaton that people need.  the misconceptions are MANY and this is some GREAT factual advise!
Jun 29, 2007 12:38 PM
Anonymous
lexyfreeman

I am in Louisiana.  I receive 20k per month in alimony and child support for the next 16 years by court order.  My ex also must maintain a $2 million life insurance policy to guarantee payments by court order.  I have a FICO of 709.  I have 650k down on a home that the bank appraised at 1.3 million.  I have received and documented my payments conistently for the past 11 months since the divorce was finalized.  By the time construction will be completed and I seek permanent financing I will have received 23 months of payments.  I have no other debts and had previous home ownership in my name.  I have been assured throughout the process that this loan is a "no-brainer" by the bank for a construction loan and have already sold my previous home, spent 60k on architect and 160k on lot as I relied on this.  However, I have now been waiting 60 days since I applied for the loan for approval and the lender says that the underwriter has a problem with the amount of my alimony payments although they have been consistently received and will extend 16 years by court order.  He just keeps saying everything is relative and will not give me any more information.  I feel that I am being discriminated against because I am a divorced young woman and the underwriter just doesnt feel I either deserve 20k/month or a 1.3 million home.  I dont have time to begin process with another lender for several reasons.  What are your thoughts? 

Oct 15, 2010 05:31 AM
#33