Does child support count...

hterry85

Does child support count as debt when applying for a mortgage?

I've been running numbers all day because I just found a house I'm in love with. And now I'm just depressed. It seems we will never get a decent mortgage with school loans and child support with a strict as everything is. Never mind we've paid our rent on time every single month for 5 years, even when DH was unemployed.

/end public pity party.

Holly_1007

if you are up to date I don't think its "debt" but it is a monthly bill, since its the same every month I would deduct it right out of your salary before even crunching numbers. 

xmaryrickx

Yes. Court ordered CS counts towards your debt to income ratio. Have you looked into any special mortgage programs? Rent obviously doesn't show on your credit report, but how is your credit overall? Is it clean? Depending on your DTI you might be surprised at what you can qualify for.

hterry85

xmaryrickx:

Yes. Court ordered CS counts towards your debt to income ratio. Have you looked into any special mortgage programs? Rent obviously doesn't show on your credit report, but how is your credit overall? Is it clean? Depending on your DTI you might be surprised at what you can qualify for.

Our credit is really high, like give or take 50 points from perfect type of high. But just from what I've read online/online calculators our DTI is close to maxed out WITHOUT a mortgage.

CFjo2010

xmaryrickx:

Yes. Court ordered CS counts towards your debt to income ratio. Have you looked into any special mortgage programs? Rent obviously doesn't show on your credit report, but how is your credit overall? Is it clean? Depending on your DTI you might be surprised at what you can qualify for.

^^ Yup.  When my husband and I were looking at houses this past Summer, the bank took into consideration what we pay out in CS.  Granted, they also tried to calculate in what I'm supposed to receive in CS from my XH.

Even with a wacky DTI, a super high score will allow more "wiggle" room.  I hope you guys are able to get it all figured out. Good luck!

Nineoceans

It would have counted as a monthly debt when I applied for a mortgage so it will factor in to your debt to income ratio

Littlejen22

Let me be a downer but if your numbers are that bad then I would suggest keeping the house as a daydream, even if you can do it there will be unforeseen expenses with a house and I would hate to see you in over your head. We bought back in 2004 and bought a house for much less than we could have been approved for back the but k we what would be comfortable and even then I wish we went for less, owning a house is way more expensive than I honestly realized. We have needed a new food, a new furnace and hot water heater, new appliances, new pool cover and filter and we need to fix our deck and get new front steps, the house is 27 years old and was 19yo when we bought. Sometimes I seriously wish we rented even thought there are benefits.