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