What we verified in “Child support, alimony and your mortgage application”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. Under Regulation B (12 CFR 1002.5(d)(2)), a lender cannot ask whether part of your income comes from alimony, child support or separate maintenance, unless it tells you that you do not have to reveal that income if you do not want it considered.

   Sources 1 · 12 CFR §1002.5(d)(2): 'A creditor shall not inquire whether income stated in an application is derived from alimony, child support, or separate maintenance payments unless the creditor discloses to the applicant that such income need not be revealed if the applicant does not want the creditor to consider it in determining the applicant's creditworthiness' · Checked October 31, 2026

2. Under Regulation B (12 CFR 1002.6(b)(5)), if you rely on alimony, child support or separate maintenance, the lender must count those payments as income to the extent they are likely to be consistently made; and (1002.6(b)(3)) it cannot assume your income will drop because you have or will have children.

   Sources 2 · 12 CFR §1002.6(b)(5): a creditor shall consider alimony, child support, or separate maintenance payments as income 'to the extent that these payments are likely to be consistently made'; (b)(3): 'shall not make assumptions or use aggregate statistics' relating to the likelihood that any group of persons will bear or rear children or will, for that reason, receive diminished or interrupted income · Checked October 31, 2026

3. According to Fannie Mae's Selling Guide (B3-3.4-02, October 7, 2026), the lender may count alimony or child support as income only if you disclose it on the application and ask that it be considered; it needs a copy of the divorce decree, separation agreement or other written legal agreement or court decree with the terms; if you are separated without an agreement that sets the payments, proposed or voluntary payments are not counted; it must document that you received full, regular and timely payments for the last six months, with bank statements, canceled checks or other proof; and it must document that the income will continue for at least three years from the application, checking limits such as the children's ages.

   Sources 3 · Selling Guide B3-3.4-02 (10/07/2026): 'only if the borrower discloses it on the Uniform Residential Loan Application and requests that it be considered'; 'a copy of a divorce decree or separation agreement'; 'If a borrower who is separated does not have a separation agreement that specifies alimony or child support payments, the lender should not consider any proposed or voluntary payments as income'; 'document receipt of income for the most recent six months'; 'A minimum six-month history is required'; 'full, regular, and timely payments'; 'expected to continue for at least three years from the application date'; 'Check for limitations such as the age of the children' · Checked October 31, 2026

4. According to Fannie Mae's Selling Guide, documented child support is nontaxable and may be grossed up: if income is nontaxable and likely to stay that way, the lender should add an amount equal to 25% of that income, or more if the taxes someone with similar income would pay are higher.

   Sources 4 · Selling Guide B3-3.4-02: 'The full amount of documented qualifying child support income is nontaxable and may be grossed up'; B3-3.1-01, General Income Information (10/07/2026), 'Nontaxable Income': 'adding an amount equivalent to 25% of the nontaxable income to the borrower’s income'; 'If the actual amount of federal and state taxes ... is more than 25% ... the lender may use that amount' · Checked October 31, 2026

5. According to HUD Handbook 4000.1, on an FHA loan the alimony or child support you receive can count as income with a signed copy of the final divorce decree, legal separation agreement, court order or a voluntary payment agreement with proof of receipt; with an order, proof for the last three months is required through bank statement deposits, canceled checks or child support agency documents; with a voluntary agreement, 12 months of canceled checks, deposit slips or tax returns; and the lender must show the income will continue for at least three years.

   Sources 6 · Handbook 4000.1 (last revised August 12, 2026), II.A.4, '(B) Alimony, Child Support, and Maintenance Income (TOTAL)', p. 234–235: 'fully executed copy of the Borrower’s final divorce decree, legal separation agreement, court order, or voluntary payment agreement with documented receipt'; 'evidence of receipt using deposits on bank statements; canceled checks; or documentation from the child support agency for the most recent three months'; 'document the voluntary payment agreement with 12 months of canceled checks, deposit slips, or Tax Returns'; 'will continue for at least three years' · Checked October 31, 2026

6. According to HUD Handbook 4000.1, if you received payments consistently for the last three months (with a court order) or six months (with a voluntary agreement), the current payment is used; if not, the average received over the previous two years is used, or over the time you have received it if less than two years; and child support is on the list of nontaxable income, which can be grossed up by up to the greater of 15% or your tax rate, or 15% if you did not have to file a return the previous year.

   Sources 6 · Handbook 4000.1, II.A.4, '(3) Calculation of Effective Income', p. 235: 'consistent ... Income for the most recent three months, the Mortgagee may use the current payment'; 'consistent ... for the most recent six months'; 'must use the average of the income received over the previous two years'; 'If ... received for less than two years, the Mortgagee must use the average over the time of receipt'; '(P) Nontaxable Income (Grossing Up) (TOTAL)', p. 247–248: 'Child Support'; 'cannot exceed the greater of 15 percent or the appropriate tax rate'; 'not required to file a Tax Return ... may Gross Up the Nontaxable Income by 15 percent' · Checked October 31, 2026

7. According to Fannie Mae's Selling Guide (B3-6-05), if a divorce decree, separation agreement or other written legal agreement requires you to pay alimony or child support, and those payments must continue for more than ten months, they count as monthly debt; voluntary payments do not need to be counted; the lender must get a copy of the document confirming the amount; and for alimony it may, instead of adding it to your debts, subtract it from your qualifying income.

   Sources 5 · Selling Guide B3-6-05 (08/05/2026), 'Alimony, Child Support, Equalization Payments, and Separate Maintenance Payments': 'those payments must continue to be made for more than ten months—the payments must be considered as part of the borrower’s recurring monthly debt obligations'; 'voluntary payments do not need to be taken into consideration and an exception is allowed for alimony'; 'A copy of the divorce decree, separation agreement, court order, or equivalent documentation confirming the amount of the obligation must be obtained'; 'the option to reduce the qualifying income by the amount of the obligation in lieu of including it as a monthly payment' · Checked October 31, 2026

8. According to HUD Handbook 4000.1, on an FHA loan the child support you pay counts as monthly debt; alimony counts as debt if it was not subtracted from your income; the lender verifies it with the signed divorce decree, separation agreement or other legal order; it asks for pay stubs covering at least 28 consecutive days to see whether you have a garnishment for those payments; and it uses the greater of the amount on the most recent document or the garnishment.

   Sources 6 · Handbook 4000.1, II.A.4, '(E) Alimony, Child Support, and Maintenance (TOTAL)', p. 215: 'if the Borrower’s income was not reduced by the amount of the monthly alimony obligation ... must include the monthly obligation'; 'Child Support and Maintenance are to be treated as a recurring liability'; 'official signed divorce decree, separation agreement, maintenance agreement, or other legal order'; 'pay stubs covering no less than 28 consecutive Days to verify whether the Borrower is subject to any order of garnishment'; 'the greater of: the amount shown on the most recent decree or agreement ... or the monthly amount of the garnishment' · Checked October 31, 2026

9. According to the IRS, child support is never deductible and is not considered income; and for divorce or separation agreements executed after 2018, the payer of alimony cannot deduct it and the recipient does not include it in gross income.

   Sources 7 · Topic no. 452, Alimony and separate maintenance (last reviewed Sept. 24, 2026): 'Child support is never deductible and isn't considered income'; 'can't deduct alimony or separate maintenance payments made under a divorce or separation agreement' executed after 2018; 'are not included in their gross income' · Checked October 31, 2026

10. According to the Legal Services Corporation (LSC), it is an independent nonprofit established by Congress to fund civil legal aid for low-income Americans, it funds organizations in every state, the District of Columbia and the territories, and on its website you enter an address or city to find the nearest organization.

    Sources 8 · I Need Legal Help: 'LSC is an independent nonprofit established by Congress in 1974 to provide financial support for civil legal aid to low-income Americans'; 'in every state, the District of Columbia, and U.S. Territories'; 'enter an address or city below to find an LSC-funded legal aid organization near you' · Checked October 31, 2026

11. According to the CFPB, the counseling agencies in its search tool are approved by HUD and offer independent advice, often at little or no cost, on buying a home, renting, defaults, forbearances, foreclosures and credit; you search by ZIP code; and not every agency offers every service.

    Sources 9 · Find a Housing Counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD)'; 'offer independent advice, often at little or no cost to you'; 'buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'Search by ZIP code'; 'Not every housing counselor offers all services' · Checked October 31, 2026