Qualifying for a mortgage when you pay alimony. This often dramatically improves debt-to-income ratios. If there is less than 10 months remaining on the alimony to be paid, then the lender does not have to factor in the alimony payments in the debt to income ratios.

Alimony alone cannot qualify an individual for a mortgage loan. There must be other verifiable income, usually in the form of earned income. While the actual percentage of income allowed coming from alimony payments varies, 30% or less is what the FHA allows and so is usually the amount most mortgage companies accept.

The payment of interest may be alimony rather than mortgage interest. Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). The loan may be a mortgage used to purchase the home, a line of credit, or a home equity loan.

This column discusses the tax implications of alimony or spousal support, with a focus on the specific criteria that payments must meet to qualify as alimony.. T can deduct the monthly mortgage payment as alimony because he must make the payments to a.

Debt-to-Income (DTI) is a lending term which describes a person’s monthly debt load as compared to their monthly gross income. mortgage lenders use Debt-to-Income to determine whether a mortgage.

 · To qualify for a mortgage supported by Freddie Mac, the income will need to continue for at least three years. This means that if your child-support payments, for example, will end in two years, you will not be able to use this source of money towards your mortgage-loan qualification; you will have to qualify with the rest of your income.

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Alimony payments may be considered as “income” for mortgage qualification purposes. However, alimony payments will only be considered for.

A lender will have to evaluate your specific situation and the term of your alimony obligation to determine if you can also take on a mortgage. Generally speaking, if all of your monthly debt payments exceed about 40 percent of your total income, then you may have a hard time qualifying for a mortgage.

Lenders Guidelines Official HUD Guidelines for the FHA Program The FHA loan program is managed by the Department of Housing and Urban Development (HUD). They hud website offers dozens of handbooks relating to the FHA mortgage-insurance program, adding up to more than 10,000 pages.