FHA and how they treat CHILD SUPPORT on Credit.

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rwhelton

38 Posts

Posted - 01/28/2008 : 3:23:53 PM

I have an approve eligible on this applicant. What are underwriters going to ask for on the approval beyond AUS in regards to the divorce decree? If pay history is important on the child support I could be in trouble which is why I'm asking. Pay history has been good enough so they don't garnish from employer but sloppy enough to grade out as a 3x30 in the last 12 months if you really looked at it....

Any suggestions...

1stintegritymort

1298 Posts

Posted - 01/28/2008 : 3:38:51 PM

the payment history is usually only important if the borrower is receiving child support, not paying it out. to count the child support as income, you have to prove timely payments for 6 months. if the borrower is paying it out as a debt on the credit the payment history is usually not an issue. they just calculate the amount in the DTI.

rwhelton

38 Posts

Posted - 01/28/2008 : 3:43:12 PM

That's what I thought also but have been proven wrong. I've got a father paying child support and has been paying good for the most part but got behind a little when he moved from Florida to Tennessee. It's not being garnished on his check and he has a perfectly normal jobby job, w-2'd, and computer generated paystubs. I'm trying to see if this is interpretation or part of the 4155. The only thing I saw in the 4155 was in regards to using child support as income and this is not the case. Lender is telling me they treat it as a deragatory account like a credit card so they count his pay history on the child support like a slipping credit card or car loan gone bad.

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