Child Support Mortgage Guidelines On Home Purchase And Refinance
This Article Is About The Child Support Mortgage Guidelines On Home Purchase And Refinance
Homebuyers can qualify for home loans with outstanding collections and charged-off accounts without paying them. Government and Conventional Loans do not require borrowers to pay outstanding collections and charged-off accounts as long as they can get an automated underwriting system approval (AUS). FHA Loans is the most lenient when it comes to getting an approve/eligible per AUS FINDINGS. We will narrow our topic to Child Support Mortgage Guidelines on FHA Loans on this blog. Child Support Mortgage Guidelines are similar on all government and conforming loan programs.
Child Support Mortgage Guidelines Are Agency Guidelines
Not all lenders have the same FHA, VA, USDA, Conventional Lending Guidelines. For example, FHA requires borrowers to meet a 580 credit score for a 3.5% down payment home purchase FHA Loan. All lenders need to meet the 580 credit score requirements of their borrowers. However, lenders can require higher credit scores such as 620 to 640. This higher credit score requirement is called lender overlays. All lenders need to meet Child Support Mortgage Guidelines. As mentioned earlier, all loan programs have the same Child Support Mortgage Guidelines. Borrowers cannot qualify for a mortgage unless the child support payment has been out of collection and in good standing.
Will Filing Bankruptcy Discharge Alimony And Child Support?
Borrowers can qualify for government-backed and conventional loans after bankruptcy. There are minimum mandatory waiting period requirements to qualify for mortgages. The waiting period depends on the particular loan program. Per Child Support Mortgage Guidelines consumers with delinquent child support and/or alimony cannot think they can qualify for a mortgage and discharge child support/alimony payments in bankruptcy.
Here is what Chicago Bankruptcy Attorney Chad Hayward says about dischargeable debts on child support and alimony:
Alimony or maintenance is not dischargeable in bankruptcy, although you can cure any default through a Chapter 13 plan. Moreover, marital debts that you are ordered to pay by a divorce judgment may be dischargeable as to the creditor, but your obligation to your ex-spouse would not be. For example, if you and your ex-spouse had a joint credit card debt and your divorce judge ordered you to pay the debt, or if your marital settlement agreement calls for you to pay the debt, and you filed bankruptcy to discharge the credit card debt, you could still end up being liable to your ex-spouse for the debt if he or she is required to make payments to that particular creditor unless your ex-spouse also files bankruptcy and discharges his or her obligation to that creditor. Therefore, if a couple knows they are going to get a divorce, it is often advisable to file for bankruptcy before a divorce judgment is entered because you can avoid the cost of two separate bankruptcies. Another area issue that arises with joint debt following a divorce is when a judge awards real estate to one party but orders he or she to refinance within a certain amount of time to remove the other party. This sounds great at the time the divorce is finalized and a judgment is entered, but what happens when the ex-spouse does not qualify for a mortgage to refinance the property? The answer to that is the spouse that was not awarded the property is still responsible for the loan payments if their ex-spouse defaults. Creditors do not care that there is a divorce judgment ordering your ex-spouse to refinance the house. As long as they still possess a promissory note with your name on it, you are responsible to them and the divorce decree does not supersede the obligations of such promissory note. Filing for bankruptcy is one way to eliminate your responsibility to the mortgage company and any negative credit reporting for missed payments due to your ex-spouse.
Child Support Mortgage Guidelines On Written Payment Agreement
Per Child Support Mortgage Guidelines, borrowers can qualify for purchase and refinance mortgages with outstanding child support/alimony payments without the full balance paid in full. In order to qualify, borrowers need to either have a written payment agreement and/or have the back child support/alimony payments paid in full and show proof. As long as the borrowers have a written payment agreement approved and can show three months of canceled checks, they will qualify for home loans. There can be an outstanding large balance but lenders only care that borrowers have a written payment agreement and are making timely payments.