Child support in mortgage underwriting?

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It’s my understanding that mortgage underwriting considers child support payments to be like consumer debt. They are added to any other monthly payments you may have along with the proposed new mortgage payments and divided into your monthly income to get a debt to income ratio. This ratio must be 41% to 47% to qualify for a normal mortgage, depending on the loan program.

I am suprised to see the full amount of child support included as a debt, since the single or married parents of children who neither pay nor receive child support would be allowed a much larger loan, yet face 100% of the costs of raising the children. Do I understand this correctly, and is there any recourse for what appears to be an unfair business practice? It seems to me that some if not all of the support would simply be considered the same expenses that any family with children face, alongside the mortgage and any other loans they may have. I assume the fact that it’s harder to adjust support downward when you have a financiall setback contributes to this issue, but why include the entire amount?

  1. Reply
    May 3, 2011 at 3:08 am

    what is included is your monthly amounts owed as a noncustodial parent. The divorce agreement states what you must pay. So this is where the information comes from. It is a crime not to sy that you do not owe it when it is part of the federal declarations that you must sign as part of the whole application.
    I am a mortgage banker in TN & KY

  2. Reply
    Doctor Deth
    May 3, 2011 at 3:16 am

    I’ve bought 3 houses in the last 3 yrs – 2 as investment properties and I think I had to include my ch Supp payments (to my ex) as debt payments

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