Locking a rate with alimony income follows a standard process. The income must be properly documented and expected to continue for at least 3 years.
Alimony and child support can be used as qualifying income for a mortgage. Lenders need proper documentation to verify the income stream.
Standard Process for Alimony Income
Alimony income is treated similarly to other recurring income sources for mortgage qualification. To use alimony as qualifying income, you must provide a copy of the divorce decree or separation agreement, proof of receipt for the most recent 12 months, and documentation showing the income will continue for at least three more years. For buyers in San Antonio and the Texas Hill Country, alimony can be a valuable income source for qualifying.
Documentation Requirements
Lenders require the divorce decree or settlement agreement showing the alimony obligation, plus 12 months of canceled checks, bank statements, or tax returns showing receipt of the payments. A CPA letter or court order may also be accepted. If the alimony is scheduled to end within three years, lenders typically cannot use it for qualifying purposes. Ensure your documentation is organized before applying.
