Yes, you can use alimony and child support payments as qualifying income for a mortgage, but the documentation requirements are strict.
You need: the divorce decree or court order establishing the payments, proof of 6-12 months of consistent receipt, and evidence the payments will continue for at least 3 years after closing.
Lenders average the income over the remaining payment period. If the payments will stop in 24 months but your mortgage is 30 years, the income may not count fully.
Qualification Rules
FHA and Conventional both allow alimony and child support as qualifying income. VA has specific rules about documentation. The key requirement is consistent receipt and likely continuation.
Documentation Required
You need: divorce decree or separation agreement showing amount and duration, 6-12 months of bank statements or deposit records showing receipt, and tax returns showing the income was reported.
How It's Calculated
Lenders average the payments over 12-24 months. If monthly payments were ,500 for 12 months, that's your qualifying income. If payments fluctuate, the lender uses the average.
Duration Requirements
Payments must continue for at least 3 years from the closing date. If your child support ends when your child turns 18 and that's 2 years away, the income may not count.
Impact on DTI
Alimony and child support are added to your gross monthly income for DTI calculation. This can help you qualify for more home, but also increases your borrowing capacity.
Tips for Borrowers
Keep clean records of every payment. Have the divorce decree ready. If you expect payments to end soon, explore other income options. Consider a larger down payment if alimony won't count.