Do I count this into my income?

[mommyof4]

I will going for a mortgage next year and was wonder how to factor into this issue of income. I make over 63,000 a year, but I also receive over 20,000 a year in child support from my ex. The problem is he and I have a great understanding, so there was no need for a child support order. The questions are......

1. Will the banks count this a income even though there is no court order?

2. If not... How will they react to the weekly deposits into my account?

[mommyof4]

Mod can you move this to Mortgage board. Sorry!!

[mross1080]

As long as you reported it as income on your taxes it will be considered. If you dont report it than I dont think its included. When I went for a mortgage recently I was told they only go by your stated income for the last 2 years returns.

[Anonymous]

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@mross1080 wrote:

As long as you reported it as income on your taxes it will be considered. If you dont report it than I dont think its included. When I went for a mortgage recently I was told they only go by your stated income for the last 2 years returns.

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Child support is not taxable income, and would not be on the taxes. I had to have my kids' dad write a letter for the UW stating that he gave me x amount of money on y schedule and I had to show proof that he is their father. I have a court order for child support, but I couldn't find it and I didn't want to go down to pay for a copy.

[ShanetheMortgageMan]

Unfortunately non-court ordered child support cannot be used since there is no obligation to continue it's payments.  Voluntary child support is fine, however there must be a court document stating so.  Appears that'd be an oxymoron, but here is an example of one http://www.documents.dgs.ca.gov/osp/pdf/std458.pdf

Here are standard underwriting guidelines on child support:

Child support income will be considered when based on a divorce decree, court ordered separation agreement, court decree, or another legal agreement providing the payment terms confirm that the income will continue. If the age of the child is not clearly defined, additional confirmation must be obtained to document the age of the child and the income continuance. Child support income must be grossed up by 125%.

When determining the acceptability of this income the Borrower's regular receipt of the full payment due and any limitations on the continuance of the payments (including the age of the children for whom the support is being paid) must be taken into consideration. If a Borrower who is separated does not have a court order that specifies child support payments, proposed or voluntary payments should not be considered as stable income.

Evidence must be provided to document that the funds have been received for the past 12 months.

● When a Borrower has been receiving full, regular, and timely payments for the past 12 months the income may be considered stable.

● When a Borrower has been receiving full, regular, and timely payments for six to twelve months, the income may be considered stable as long as it does not represent more than 30% of the total gross income.

● When a Borrower has been receiving full, regular, and timely payments for less than six months, the income may not be considered stable and may be used as a compensating factor only.

● When a Borrower has been receiving full or partial payments on an inconsistent or sporadic basis, the income may not be considered as stable income.