Freddie Mac
No less than 6 months of the borrower’s most recent regular receipt of payment is required to document alimony/child support/separate maintenance as income.
Fannie Mae
No less than 6 months of the borrower’s most recent regular receipt of full payment is required to document alimony/child support/separate maintenance as income.
NMLS #2179146
FHA (non-streamline)
When a final divorce decree or support order is used to document the income, a minimum of 3 months’ receipt is required.
When using evidence of voluntary payments, a minimum of 12 months’ consistent receipt is required.
If the income has not been consistently received for the most recent 6 months, the income must be average over the previous two years (or over the time period the income was received when less than 2 years.)
VA (non-IRRRL)
Proof of deposits on bank statements for 3 months, and front page and details of support payments from the divorce decree, indicating evidence of at least 3 years continuance is required.
What documents should I be ready to provide for a pre-approval?
1. Identification
Government issued ID for each borrower – this can be a state-issued driver’s license, birth certificate, or passport.
2. Proof of Income
Employees – most recent pay stubs
Self-employed – profit and loss statement
Passive income – most recent financial asset statements
3. Financial Asset Statements – At least two months of your most recent statements, including:
Bank checking and savings
Brokerage
Retirement fund – 401K, pension, self-funded ( ROTH, SEP, Individual), annuities
Trust
4. Tax Returns
Employees – W-2 forms and tax returns for the last two years.
Self Employed – Profit and loss statements, 1099, and tax returns for the last two years.
Passive Income – Tax returns for the last two years.