Financing in Stow>Question Details

reginaw4, Home Owner in 80249

I am trying to re-fi on my rental property. My income used includes arrearages for child support which is owned for the next 14 years.

Asked by reginaw4, 80249 Fri Apr 25, 2014

I have sent documentation to support this income but,The underwriter is requesting a letter verifying I will receive this income for the next 3 years. The income is coming from my ex's Social Security . Family Support claims by law they are unable to put anything in writing and the underwriter won't approve the loan with out it is there any way around this?
I have been receiving this income for 2yrs 4 months.

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RonS’s answer
The divorce papers (Final orders, not interim orders) should be sufficient to document the amount and period awarded to you.

Per the Freddie Mac seller/servicer guidelines (Seller means, the lender):

(c)Other income (non-employment/non-self-employment)
If a Borrower chooses to disclose non-employment/non-self-employment income such as alimony, child support or separate maintenance payments, public assistance payments, Social Security or retirement benefits, trust, investment, the Seller should consider them as stable income consistent with the requirements of this chapter. As with all income, the Seller must evaluate whether the non-employment/non-self-employment income has been consistently received for at least two years and is likely to be consistently received for the next three years based on the documentation required in this chapter, and any other documentation contained in the Mortgage file. In some instances, as described below, a two- year history of receipt of the non-employment/non-self-employment income is not required. In other instances where the Borrower has less than a two-year history of receiving income, the Seller may be able to use the income to qualify the Borrower but must provide a written analysis to justify the determination that the income that is used to qualify the Borrower is stable. The Seller may consider non-employment/non-self-employment income for qualifying provided the Seller does not have knowledge, information or documentation that contradicts a reasonable expectation of continuance or probability of consistent receipt for at least the next three years.

The method of documenation is:

Child support
•Proof of receipt of the total court ordered amount for the most recent six month period and proof of the ages of the children for which child support is received in order to prove three year continuance, and
•Copy of the signed court order documenting the payor's obligation for the previous six months and evidence the payor is obligated to make payments to the Borrower for the next three years
0 votes Thank Flag Link Fri Apr 25, 2014
I would check with a different lender. Some lenders have different requirements with it comes to these restrictions. Call me and I will give you the number of someone who could probably loan on this.
Thanks!
0 votes Thank Flag Link Mon Nov 17, 2014
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