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Can Child Support Payments Be Used As Income For A Mortgage?
In a short answer, the answer is yes, some banks and lenders will consider using child support payments when applying for a mortgage. Not all banks or lenders do, and some banks or lender may only consider 30% to 50% of the child support income received, but there are banks and lenders that may consider using up too 100% of the payment received when you are applying for a home loan.
Most of the banks or lenders that will consider child support as income will require certain criteria and paperwork to prove that is regular and ongoing income.
The type of criteria and paperwork that a bank or lender may require to prove that the child maintenance is acceptable to use as income to apply for a home loan–
- A court order or a CSA (Child Support Agency) agreement showing the date the agreement was reached, and how much the payments should be.
- A private child support agreement, with evidence showing the payments are being made (like deposits into your banks account)
- 3 to 6 months bank statements, showing that the payments have been made regularly and on time.
- Some banks or lenders may use the child support income if the children are 12 years of age or younger, some may consider using child support for dependents up to the age of 16.
If you would like some more information about a bank considering using child support as income, please contact Perth Mortgage Broker Group , or call Troy on 0411 229 602, 7 days a week
