Can Alimony Help You Qualify For A Mortgage?

Author: Miod & Company
Date: December 31, 2021
Category: Family Law
Average Time Reading: 3 minutes

Constant legal procedures, sudden lifestyle changes, and a plethora of decisions are challenges often associated with legal separations/divorces. It may be difficult for divorcees to obtain financial stability in some instances. Many wonder how post-separation arrangements will affect their real estate purchasing options (particularly when seeking mortgage qualification). 

Although many variables affect the likelihood of qualifying for a mortgage, it is important to note that the evaluating authority will evaluate the alimony-receiving and alimony-paying parties differently.

Applying for a mortgage while receiving alimony payments

Alimony payments can be a double-edged sword. Those responsible for making these payments may be put at a disadvantage. In this scenario, payments are considered debt in the eyes of the lender. When reviewing applications, lenders compare applicants’ income to outstanding debt to better understand their ability to make payments in the future. On the other hand, it is important to note that this is not the only factor considered. As stated by Rocket Mortgage: “Your lender also looks at your credit score and the amount of money you have for a down payment.”

Key Takeaways

Those who have gone through legal separation/divorce must understand the impact on home-purchasing opportunities. This will improve their financial stability. Keeping records will allow people to prove alimony payments received when applying for a mortgage. Paying alimony may not help you qualify for a mortgage, but staying organized will help you understand your overall financial situation.

While adjusting to a new lifestyle after a legal separation can be difficult, understanding how it will affect one’s chances of qualifying for a loan is the first step towards a new beginning.

Need help navigating the strange world of alimony and everything it entails? We can help. Reach out to us at Miod & Company today!

Related Blogs
Preparing for Divorce Over 50: What You Need to Know

Preparing for Divorce Over 50: What You Need to Know

Divorce Over 50 is a difficult process, but when you're over 50, there are a few additional factors that need to be considered. These challenges may include financial considerations, such as the division of retirement accounts and pensions, as well as the potential...

4 Common Questions Taxpayers Have on Structured Settlements

4 Common Questions Taxpayers Have on Structured Settlements

Structured settlements are a financial arrangement that is often used in legal cases to provide a stream of future payments to a plaintiff. While this can be a useful tool for those who have received a settlement, it is not always the best option for everyone. In this...

Miod and Company

About Us
Our People
Blog
Book A Call
Privacy Policy

Services

Forensic Accounting
ERC Services
Tax Services
Accounting Services
Litigation Services

Industries

Entertainment
Real Estate
Legal Services
Construction
Cannabis

Contact Us

Address: 27200 Tourney Rd #290 Valencia, CA 91355
Phone: (818) 898 9911
Email: contact@miod-cpa.com

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!