When you are looking at leveraging Alimony or Child Support as a source of income there are several thresholds clients will need to meet. First, they will need to provide a copy of the Divorce Decree (or any other legal document) outlining the payment structure. Next, they will be asked to provide proof that they have received at least six months of the full Alimony/Child Support payments. There can be no partial payments as this makes the income source “unstable.” The above is the standard for a Conventional and Jumbo style mortgage loan, it is only 3 months received doing the loan as an FHA.
Finally, any support that is calculated as part of Income will need to continue for at least three years from the time of the mortgage application. This means that if a client has two children, one who is 12 yrs. old and another who is 17 yrs. old, then only the Child Support for the 12-yr. old can be counted as income if the Divorce Decree states support will end when children reach 18 years of age.
Mortgage Loan Officer
6801 Gaylord Parkway #202
Frisco, TX 75034