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Registered: ‎08-06-2013
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Child Support Arrears and VA Loan

My husband just got conditionally approved during underwriting for a home loan. I am not being considered because I'm an independent contractor with <2 years of work in my industry. We never thought of this until now. His credit report is clean and all accounts are up to date. He has a score of 660 and only one credit card with a monthly payment of 25.00. 

 

A few months ago he was temporarily laid off and they couldn't garnish his entire support payment from his checks. He has a court order for child support and we submitted that when we applied for the loan. So right now he's paying an extra 80.00 per month for arrears and those arrears are around 800.00, no more though. They are currently being paid on as the court order suggests through wage garnishment through his new employer AND they were never reported to his credit report (as of yesterday).

 

Should we tell our loan officer or pay this off or should we just wait and see if underwriting says anything about it? I can pay it off with one of my CC's but I don't want to because it will be taken care of soon enough, and my CC interest is 16% which is higher than the 5% on his arrears. Will they ask us to pay this off? The only reason I think they may find out is they asked about a garnishment on his military retirement as they asked for an explanation. If you have more than one source of income, and your main income doesn't pay off your monthly support obligation, they will take money from any other sources of income excluding disability. So we just said when he was on unemployment they had to garnish from his retirement funds. I wonder what will happen?

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