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FHA Loans and Verifiable Income: Alimony, Child Support, and Maintenance Payments

Borrowers applying for an FHA home loan have good reason to consider listing alimony, child support, and maintenance payment income on their loan applications.

Not all wish to have this type of income included in their application data, but when accompanied by proper documentation and when verified by the lender, these types of “non-employment income” can be used to help calculate the borrower’s debt-to-income ratio for FHA loan approval.

But what does the FHA require in order to verify and approve these income sources for the FHA loan?

According to the FHA official site, “Alimony, child support, or maintenance income may be considered effective, if

–payments are likely to be received consistently for the first three years of the mortgage
–the borrower provides the required documentation”

What does that documentation include? FHA rules say the borrower must provide a court order, divorce decree, separation agreement, and/or a statement of voluntary payments or other paperwork that shows in writing what the terms of the agreement are and how much per payment. Your lender may also require evidence that payments have been received over the previous year, which can include receipts, deposit slips, tax statements, or court records.

If payments have started but have not been going for a full year, FHA loan rules state, “Periods less than 12 months may be acceptable, provided the lender can adequately document the payer

5 Responses to FHA Loans and Verifiable Income: Alimony, Child Support, and Maintenance Payments

  1. Mary Lorah says:

    Can someone purchase a new primary residence with a 30 year FHA loan (3.5% down payment) and still own the current primary residence that has a conventioanl mortgage on it. The current property will to be listed for sale once the borrower moves. They have the necesssary reserves required for the transaction.

    • Joe Wallace says:

      FHA borrowers must certify the new home is to be the primary residence. For more information contact the FHA at 1-800 CALL FHA.

  2. David says:

    Can my fiancees income be counted towards my income requirements when fiing for an fha loan? She lives with me and she has been saving all her income for closing costs and such while I have been paying all the bills. I am thinking that I would need to get the loan in only my name as her credit score is to low to qualify.

    • Joe Wallace says:

      The income of anyone to be obligated on the FHA loan would be counted, but unless you are married and living in a community property state, the situation you describe may not be possible except possibly as a contributing factor, depending on the lender. But in general I would say it’s not likely in the situation you describe.

  3. I am 72 years old and I’ve tried to aquire a loan through several banks in the last 2 years. To no prevail I have not aquire the loan from either banks. I feel like the banks has discrimate against me with my age. Chase bank has requested employment verification and recieved documents from my employer but has stated its not correct. They are requesting information about current wages. I’m an seasonal employee and do not start work for this year until May 23, 2013.

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