Did you know that FHA allows the lender to deduct the monthly alimony payment from your clents gross monthly income when calculating there debt ratios? Because of the tax consequences of alimony payments, FHA guidelines permit the lender to deduct the monthly alimony payment from the borrower's gross monthly income before calculating ratios, rather than including the alimony payment with other monthly liabilities. This can make a huge difference in qualifying ratios. With the higher loan limits available in many areas today, borrowers who owe monthly alimony payments, who will not qualify for a Conventional loan, may now be switched to an FHA loan.
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