Today, we want to dive into how divorce affects you as a buyer, especially when you are receiving alimony and child support or are having to pay it out.
From an underwriting standpoint, lenders will want to see that a divorce is finalized. The reason for this is that the marriage settlement typically isn’t fully available until this point.
Depending on if you are using government financing or if you are using conventional financing, you could have to wait three to six months before you can use this income to help you qualify.
But, this time restriction only qualifies if you are on the receiving end. If you are paying out, there is no time restriction as long as a fully-executed marriage settlement agreement is in place and filed with the courts.
If a person is paying child support or alimony, these monthly payments will be counted against them as a liability and could impact buying power.
On top of talking to your divorce attorney, you need to connect with your mortgage advisor if you are in this situation.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.