Does Fannie Mae require a divorce decree?

Is alimony included in debt-to-income ratio?

Alimony payments are also included in your debt-to-income ratio but they are treated differently. Lenders have the option to either subtract the alimony payment from your monthly gross income or include the payment as debt to calculate your debt-to-income ratio.

What is the documentation requirement for alimony income?

A copy of a divorce decree or separation agreement (if the divorce is not final) that indicates the monthly payment and states the amount of the award and the period of time over which it will be received.

What does Fannie Mae require when a borrower is employed by family?

The lender must obtain copies of the borrower’s signed federal income tax returns filed with the IRS for the past two years if the borrower is employed by family members. … For more information, see B3-3.1-01, General Income Information.

In what circumstance can an installment debt be excluded from a borrower’s obligations?

For installment debts being omitted from the debt payment-to-income ratio due to 10 or fewer months of payments remaining, the information on the credit report or other Mortgage file documentation must show that there are 10 or fewer months of payments remaining.

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Can you get a mortgage if you pay alimony?

Summary. Alimony can boost your total income and can even result in a larger mortgage. You can list both your child support payments and your alimony payments as streams of income when you apply for a mortgage as long as you have a documented history that your spouse makes his or her payments on time.

What happens if I can’t refinance after divorce?

If you’re not willing or able to sell or refinance your home, your other choice is to keep the home and the mortgage intact. Both parties remain on the loan and liable for the payment. This requires specific language in the divorce agreement about who will make the mortgage payments each month.

Does Fannie Mae allow stipend income?

Stipend income and mortgages

“For a Fannie Mae–backed loan, for example, Fannie Mae requires documentation of income received for the most recent 12 months and proof that will continue for at least three more years for stipend income to count on an application.”

How do you prove alimony payments?

Alimony Records for the Person Receiving

  1. Payment amount and the date received.
  2. Check number or money order number for the payment.
  3. Account number and bank name that the money was drawn on.
  4. A photocopy of the check you received or a copy of a receipt that you signed for a cash payment.

Is spousal support considered income?

California spousal support is taxable. You must claim any spousal support paid to you as taxable income. If you receive $2,000 a month in spousal support, you will need to add $24,000 to your gross income when calculating your taxes.

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Does Fannie Mae require a 2 year work history?

Length of Self-Employment

Fannie Mae generally requires lenders to obtain a two-year history of the borrower’s prior earnings as a means of demonstrating the likelihood that the income will continue to be received.

Does Fannie Mae require tax returns to be signed?

Fannie Mae requires lenders to have each borrower whose income (regardless of income source) is used to qualify for the loan to complete and sign a separate IRS Form 4506-C at or before closing.

What does Fannie Mae consider self employed?

Any individual who has a 25% or greater ownership interest in a business is considered to be self-employed.