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Getting a mortgage while owing back child support

Some parents in Texas owe back child support. When an individual is in this situation, they may wonder if they qualify for a mortgage. It is important to note that back child support counts as debt when applying for a mortgage. Additionally, it is also a derogatory credit event, which can harm a person's chances for a mortgage approval.

Before making any decisions, it would be wise for a debtor to check their credit report. Once a person sees their credit report, they will know what kind of situation they are dealing with. If they have a credit score that is high enough to qualify for a loan, there may be a good chance of them receiving one. Of course, making back payments on child support will need to be listed in a person's debts when they fill out their mortgage application.

An audit that was performed in 2016 by the U.S. Office of the Inspector General sampled 60 files that contained child support delinquencies. While these should have been barred, it was discovered that 47 of them were being insured by the FHA. When it comes to government-backed mortgages, it seems like there is a good chance of falling through the cracks despite the appearance that financing is not available.

One option is for a person to clear their debt before applying for a mortgage. Child support will still be included in one's debt-to-income ratio, but they will no longer have the debt of back child support to stop them from getting a mortgage.

Child support can change as time passes. As the children get older, the payments will likely need to be adjusted because there will be more extracurricular expenses or medical needs. Either parent may have an employment change, which could also affect child support payments. An attorney could answer a client's questions about child support and let them know the steps they would need to take in order to change their current arrangement.

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