Child Support

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 [...]

2019-05-06T18:38:13-05:00April 24th, 2019|

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 [...]

2018-05-25T15:48:21-05:00May 24th, 2018|

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) [...]

2018-05-29T17:42:05-05:00March 23rd, 2018|