Will Mortgage Lenders Count Child Support and Alimony?

Will mortgage lenders count child support and alimony?  The simple answer is “that depends”  Qualification for mortgages in Maryland is more strict than it has been in the past. Your Annapolis, Maryland lawyer will work with you to develop a schedule of payments to assist you whether you are refinancing the mortgage on the family home to “buy out” your spouse or purchasing a new home.

Do alimony and child support count as income when lenders are deciding whether you qualify for a particular amount of mortgage?   These issues should be discussed with your Annapolis, Maryland attorney when you are negotiating a separation agreement or preparing for trial.

1. In general, you have to have a signed separation agreement or an order from the court.

2. The obligation has to be payable for three years beyond when you apply for the mortgage.

3. And, you have to be able to prove a year’s history of the support actually being paid.

This means there are several considerations you need to discuss with your Annapolis, Maryland attorney at the time of negotiating the separation agreement or going to court.  I

If you have to be able to prove the payments were made for 12 consecutive months, you need to be sure to copy all pre-separation agreement checks.  If there have not been regular payments made, a lender may require you to receive payments for 12 months so you can establish a record of payments — but you are required to also have three years in the future.  If you are fearful about your spouse actually making the payments, an earnings withholding order may ensure payment.    So, you have to be sure that the length of the child support and alimony payments are long enough to both prove a history of payment and extend three years into the future.

Of course, if you qualify for the loan without and alimony and child support, this would have no effect on you.