Financing in 93314>Question Details

Lisa M., Home Buyer in Bakersfield, CA

Hi, I'm planning to buy a home and I plan to go for my pre-approval in a couple of weeks. I would like to

Asked by Lisa M., Bakersfield, CA Tue May 5, 2009

use Child Support as income but I need to know what FHA requires as documentation. The support is not court ordered and I really don't want to go through the hassle of getting a court order. We have an agreement between the two of us. I can provide bank statements to show deposits or get copies of the cancelled checks but will that be enough to be able to use it as income?

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Rudy R. McDowell’s answer
Lisa

Child Support income is allowed by FHA so long as your child/children will be receiving it at least 3 more years, payments are consistently the same amount and can be documented via court order, or if not available, bank statements and/or canceled checks for the past 3 months. If you have a written agreement that has been notarized, that would be helpful as well. I'm a FHA specialist and my bank, Shore Mortgage, was founded on and specializes in FHA financing. If I can be of further assistance, please feel free to visit my Trulia profile and call me at 800-678-6663 Ext 5154 or email me at: rmcdowell@shoremortgage.com.
0 votes Thank Flag Link Sat Oct 3, 2009
Normally child support is an acceptable source of income on a loan application with supporting documentation such as a minimum of 3 months cancelled checks, divorce decree or court order, and proof that you have actually deposited the money into your bank account in a consistent manner. Underwriters need to see the continuance of the income for a minimum of 3 years so some type of proof of age of your child is necessary. Since you do not have a court order I would suggest at minimum a written, notarized agreement on the specified amount of the monthly obligation.
0 votes Thank Flag Link Thu Oct 1, 2009
Have you been claiming the child support on your taxes? The reason I'm asking is that your income is primarily based on your taxes and current pay stub. Other documentation needed are your bank statements, investment statements (401K, etc.), and loan application (which will be completed when you are pre-qualified).

Your qualification is measure by the purchase price of home. To initially qualify someone, I start with an initial price and work my way up or down until he/she is qualified. The debt-to-income ratio should be less than 43% top ratio to be qualified for an FHA loan.
0 votes Thank Flag Link Tue May 5, 2009
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