There are many components of income considered in mortgage financing. When income from a divorce situation also comes into play, working with a divorce mortgage professional during the divorce process rather than post decree can help attorneys and divorcing clients identify and possibly avoid income qualifying issues for mortgage financing . When the situation also involves income from other sources such as property settlement notes, asset distribution income, etc. there are additional layers of stability and continuity required.
Temporary Orders and the Time Clock
When temporary orders are given by the court in regards to alimony/maintenance and/or child support, the time frame for meeting the receipt requirements begins upon the receipt of the first payment ordered through temporary orders. When final orders are given, the qualifying income dollar amount used for mortgage financing purposes will be the amount in the final settlement agreement. Typically one month’s receipt of final support order is required.
When mortgage financing will be a time sensitive issue upon the final settlement agreement, issuing temporary orders can be a benefit to the receiving party when support income is necessary for meeting the qualified income on mortgage financing. Temporary Orders can jump starting the clock on the receipt of 3 or 6 months and be a benefit in speeding up the time frame of obtaining mortgage financing.
Please don’t hesitate to contact me directly to answer your questions regarding your divorcing client’s situation or if I can answer additional questions for you.
To further discuss how to utilize income from a property settlement note when obtaining mortgage financing, contact a Certified Divorce Lending Professional. To find a CDLP in your area, click here.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only, and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.
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