With divorce comes plenty of other problems. There goes the issue of who gets the house, who gets the furniture, who gets the kids. It is not an easy time and finding a new place to live indeed adds to the stress of the situation.
If you are in custody of the children, choosing an abode to settle in could take a bit more consideration. And if you are going to choose between renting and getting a mortgage, it might be more sensible to just get a mortgage for a house that you can own in the future than rent a three-bedroom for the same monthly mortgage payment.
What are the obstacles?
If you are employed and taking the mortgage on your own with your kids in tow, your sole monthly salary might not suffice for home loan payments in the eyes of the lender (although qualifications may vary). However, if you are receiving alimony or child support, that could iron out the issue.
Yes, lenders may recognize alimony as income – under certain conditions. Different lenders may have different rules, but the following are the most common standards:
- You must be able to show a legal document that clearly establishes the formal alimony arrangement – the amount and the period in which the alimony should be received.
- You must be able to prove that the alimony or child support payments will continue to be received within the next three years.
- You must be able to establish a trail of documents showing that you have been receiving the payments for the past 6 to 12 months.
- You must be able to show the lender that you have been receiving such payments on a regular basis. You can do this by depositing the money to your bank account and keeping the receipts of such deposits to show to your lender.
On your round of inquiry, ask the lenders about their specific rules on alimony. Another important thing to consider is the price of the home. When you shop around, see to it that the resulting monthly home loan payments will still remain affordable for you even after you cease receiving child support.
Tackling practical problems can be more stressful than they are when you are going through an emotional struggle. Make sure you have the support you need. Ask the help of family members, close friends, and the professionals to help you get through.Click to See the Latest Mortgage Rates»