December 30, 2011
When a borrower applies for an FHA insured home loan, part of the qualifying process includes having all sources of income reviewed and verified. Some income can’t be used for purposes of qualifying for an FHA mortgage–usually anything which is not steady, reliable, and likely to continue can’t be claimed.
By the same standards, some types of income are not required to be listed, but if they are not listed and verified that source of income can’t be considered for the purposes of qualifying for the FHA mortgage.
Alimony, child support, and maintenance income falls into this category. If a borrower chooses not to list that type of income, it’s his or her choice–but the income must be listed and verified in order to be used to qualify for the FHA guaranteed mortgage.
Alimony, child support, and maintenance income is not automatically considered verifiable. These payments are considered “effective income” when, according to the FHA official site:
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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