Tag: Child Support

Child Support as Reduction of Income vs. Liability

Question: Will VA allow child support to be deducted from the income, or must it always be treated as a liability? Answer: Spousal support may be treated as a reduction in income on VA Form 26-6393, Loan Analysis.Child support payment is treated as a liability on VA Form 26-6393, Loan Analysis. Reference: VA Lenders Handbook, […]

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USDA – Major Revisions to Chapter 10 – Credit Analysis

Written by: David Hail, Staff Writer The revisions to technical handbook HB-1-3555 Chapter 10, Credit Analysis, are significant and require your full attention if you are originating these types of loans. Rule Synopsis: On December 19, 2019 USDA Rural Development announced upcoming revisions to technical handbook HB-1-3555 Chapter 10, Credit Analysis. They provided an advance […]

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USDA – Voluntary Child Support: If child support is not court ordered and only voluntarily paid, do I need to include this in the DTI? [Divorced Borrowers Quick Comparison Chart]

Answer: Voluntary payments do not need to be included in the DTI.  Beyond this it will be up to your underwriter as to how they will choose to interpret this part of the guidelines, and the documentation they will accept that will satisfy their requirements for due diligence. I assume that there is also no […]

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Fannie Mae – Continuation of Income – What types of income require documenting a 3-yr. continuance and which ones do not? [NEW MTP – Documenting Continuance of Income]

Answer: Fannie Mae makes it easy to determine which types of income require documenting 3 years of continuance vs. income that does not require this documentation. Reference: B3-3.1-01, General Income Information (7/25/2017) Continuity of Income A key driver of successful homeownership is confidence that all income used in qualifying the borrower will continue to be […]

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FHA – Voluntary Child Support Agreement: Does FHA allow income from a voluntary child support agreement, and if so how do you document receipt of income?

Answer: The FHA guideline is below.  The underwriter will make the final decision regarding the acceptability of the documentation, but I would think that the last 12 months of bank statements showing consistent payments matching the voluntary agreement should be acceptable. Reference: 4000.1, II, A, 4, c, xii (B) Alimony, Child Support, and Maintenance Income (TOTAL) […]

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