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Qualifying for a home loan with child support debt

Owing back child support may affect the ability of a person in Texas to get a mortgage but will not necessarily do so. A parent who has fallen behind in child support payments may be unable to get certain types of government loans, such as those associated with the VA or FHA. A 2016 audit found that applicants sometimes slipped through the cracks and were erroneously given loans, but there are other opportunities for financing that do not consider a child support delinquency disqualifying.

Credit reporting agencies do not report delinquent child support, tax liens and some other debts in the way they used to, so a person's credit score might be unaffected. However, a person may still be required to include this in a mortgage application. The first step should be checking credit scores to see if the overall credit is high enough to get a nongovernmental loan.

The credit score along with debt-to-income ratio and down payment are all that Fannie Mae looks at. The credit score requirement varies based on the debt-to-income ratio and whether or not the person has savings. The state child support enforcement agency may report a person to a federal debt database called CAIVRS if the person is delinquent. However, making a written agreement with the court may qualify a person for removal.

A parent who is struggling to keep up with child support payments can ask the court for a modification in support if there is a change in circumstances that affects the parent's income. If the parents have a formal child support agreement in place, requesting this modification is necessary even if the parents agree on it. If the parent falls behind in payments before the modification is approved, that parent will still be responsible for delinquent payments after its approval.

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