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Mortgage application/Child Support
Posted on 8/16/12 at 6:46 pm
Posted on 8/16/12 at 6:46 pm
Quick question fellas. So i just got denied a mortgage. What sent my debt/income ratio up was my child support that i pay. So....technically, lets say i decide to apply with another lender, do i have to claim my c/s? It is paid through the courthouse. There are no checks written so it would never show up in my checking account. Thoughts? TIA
4
Posted on 8/16/12 at 7:21 pm to bayouboy33
Not sure if you have to claim it, but apparantly the first bank thought your couldn't afford payments. Are you sure buying a house is within your budget?
Posted on 8/16/12 at 8:51 pm to notiger1997
If you fail to divulge the debt you are committing mortgage fraud. Penalty is up to 30 years in prison. Is that worth the risk?
Posted on 8/16/12 at 9:20 pm to VABuckeye
quote:
If you fail to divulge the debt you are committing mortgage fraud. Penalty is up to 30 years in prison. Is that worth the risk?
Actually now that I'm thinking about this, court ordered child support shows on a credit report in the public records section right? If so, he wouldn't even have a chance to hide this from a lender.
Posted on 8/16/12 at 9:37 pm to ZereauxSum
quote:
Actually now that I'm thinking about this, court ordered child support shows on a credit report in the public records section right? If so, he wouldn't even have a chance to hide this from a lender.
No, but if he's "paying it through the court", he could be in arrears. In that case, it would probably show up. Just having court ordered child support doesn't show up though.
Posted on 8/16/12 at 9:49 pm to bayouboy33
quote:
So....technically, lets say i decide to apply with another lender, do i have to claim my c/s?
I have no idea so I can't advise you there. Nor do I know any specifics about your situation.
But I will note that lending criteria exist for a reason. It isn't to keep you from getting a loan, it's to prevent you from getting in deeper than you realize. I'd think about that, you may just not be in a position for a mortgage yet.
Posted on 8/17/12 at 6:24 am to foshizzle
It is court ordered child support that is paid in cash. The messed up thing is that i have a secondary checking account that my GI bill money goes to. I use that money to pay my child support. They won't let me claim my GI bill but i have to claim my c/s, which is screwing me.
Posted on 8/17/12 at 7:51 am to VABuckeye
quote:
If you fail to divulge the debt you are committing mortgage fraud.
In The Wire this is called the head shot by the feds. No way I would lie on a mortgage application.
Posted on 8/17/12 at 8:00 am to bayouboy33
quote:
The messed up thing is that i have a secondary checking account that my GI bill money goes to.
I understand your frustration, but I also understand it from the lenders point of view. They are wondering if you will be able to cash flow the loan when the GI bill money stops. It's a legit concern IMHO.
I agree with the posters who have said that you should think this over, but if you're determined to buy, there might be lenders out there that are willing to lend to you.
The vast majority of lenders today are selling their originated loans to Fannie Mae and Freddie Mac. Because of this, lenders have to follow the guidelines that they set up, which became very rigid after the housing bubble popped.
What you need to do is find a lender that is not going to sell your loan. There are not many lenders like this out there today but if you search hard enough you might find one. They tend to be smaller lending institutions like community banks and credit unions. Some might refer to themselves as "portfolio lenders" because they keep the loans in their own portfolio.
The terms won't be the best; you might have to tolerate a higher rate or an unconventional loan product but if you are determined to own, you should look into going this route.
Good luck.
Posted on 8/17/12 at 8:06 am to bayouboy33
quote:
They won't let me claim my GI bill but i have to claim my c/s, which is screwing me.
Correct me if I'm wrong but the GI Bill is for education, correct? That isn't income. It's the government offsetting your education debt. It also isn't guaranteed to continue after a specific fixed period of time.
How long is your child support debt scheduled to continue? The length left on the debt determines whether it is counted against your DTI or not. I'm presuming you have a long ways to go on the child support.
What type of loan have you applied for? I'd be going FHA or VA if I were you. Traditionally they have allowed for higher DTI ratios than conventional loans.
I wish you the best of luck but the reality is that you may have to put the house purchase on hold until your income rises, your debts are reduced or you may have to look at lower priced properties.
Lastly, thanks for your service.
This post was edited on 8/17/12 at 8:08 am
Posted on 8/17/12 at 9:53 am to bayouboy33
as a lender let me give you some really good advice. You can't hide child support it shows up on your credit report! everyone who pays child support that is court ordered shows up on thier credit report just like a car loan. it is marked on time each month or not on time. so there is now way to hide it from your mortgage lender.
Posted on 8/17/12 at 9:47 pm to hawkeye007
quote:
as a lender let me give you some really good advice. You can't hide child support it shows up on your credit report! everyone who pays child support that is court ordered shows up on thier credit report just like a car loan. it is marked on time each month or not on time. so there is now way to hide it from your mortgage lender.
Are you using "court ordered" in the context of what was agreed upon in the divorce decree? My divorce decree states that my ex-wife and I share 50/50 custody and that I pay $350 per month child support. Nothing about that has shown up in my credit report.
Posted on 8/20/12 at 7:40 am to bayouboy33
sounds like you shouldn't be buying a house at the moment
Posted on 8/20/12 at 10:50 am to Pilot Tiger
Even if it does not show up on your credit report, it will show up on your paycheck as a deduction. Don't lie on any application. They can come back years after and charge you with fraud. They are just now reveiving 2008 & 2009 for buy backs (Fannie and Freddie). HUGE deal right now.
Posted on 8/20/12 at 2:44 pm to JonTheTigerFan
court ordered is the correct context..
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