In order to use child support payments as mortgage-qualifying income, the following requirements must be met:
(1) There must be a signed separation agreement or court order;
(2) The support payments must be continuous for at least three years after the date you apply for your mortgage; and
(3) There must be a 12-month history showing consistent receipt of child support payments (as required in some programs).
Using Child Support Payments to Qualify for a Mortgage
To meet the listed requirements, you must provide your potential mortgage lender with supporting documentation, such as the fully executed separation agreement or signed court order; this documentation must reference the amount of support to be received and the period of time when said payments shall be received. You may also be required to document that the money came from the account of the paying spouse and was deposited into an account in your name only. Lastly, you will be required to show that the child support payments will be made in monthly installments. The support cannot be received as a lump sum or annual payment.
The purpose of providing such documentation to the lender is to ensure that the child support payments you are receiving are consistent and, therefore, those funds are able to be allocated toward your monthly mortgage payments. If you have any questions regarding separation agreements or child support payments, please contact attorney Amanda Vann at 301-244-4524.