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How child support impacts a mortgage application

Texas parents who have a child support balance in arrears may still be able to get a mortgage. However, this will depend on whether the balance appears on a credit report. It will also depend on the parent's income, credit score and debt-to-income (DTI) ratio. For example, someone who applies for a Fannie Mae loan with a DTI of over 36% will need a credit score of 700 to buy a house with a down payment of less than 25%.

How much money a person has in the bank may also play a role in whether a mortgage application is approved. Those who are sent a pre-offset notice from the state may not be allowed to buy a home using an FHA, VA or USDA loan product. Parents can be put on the offset program if their balance is $25 or more and is 30 days or more past due.

Furthermore, parents who are on the CAIVRS list may have difficulty getting a mortgage. It is possible to get off this credit-alert list by paying the balance owed in full or making an agreement to pay the balance down in the near future. Many parents opt to pay an outstanding balance with a personal loan or a credit card.

A failure to pay child support will make it more difficult to get a home loan. However, a debtor can take steps to pay a past due balance or make a payment plan. In addition to making it easier to get a mortgage, staying current on child support obligations will prevent financial penalties that could interfere with raising a child. A custodial parent who is not receiving support payments may take legal action with the help of an attorney.

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