How Does Alimony and Child Support Impact Divorce Mortgage Planning?
How Does Alimony and Child Support Impact Mortgage Qualifying in Florida?
Whether you are trying to complete a refinance after divorce, or qualify to purchase your next home— alimony and child support can affect mortgage qualifying in either a positive or negative way, since lenders may treat them as income or count them as liabilities. How these payments are structured could impact your ability to meet your settlement obligations as required by your final divorce decree.
Understanding this dynamic is critical for divorce mortgage planning and in today’s post I will explain how alimony and child support impact the mortgage qualifying process.
👉 Now, before we get started, don’t forget to take advantage and download our Divorce Lending Blueprint for Success. This free guide is designed to walk you through the divorce purchase or refinance process step-by-step and is a great tool for both homeowners and attorneys alike.
How are Debt to Income Ratios affected by Alimony and Child Support
Alimony and child support payments are often part of a divorce settlement. These payments can directly impact a borrower’s ability to qualify for a mortgage. Lenders assess a borrower’s debt-to-income ratio (“Debt Ratio”), which compares monthly debt obligations to gross income.
Debt-to-Income Ratios (debt ratios or DTI) are calculated in two ways, the housing ratio and your total debt ratio with lower ratios being better for mortgage qualifying.
Housing Ratio (aka Front-End Ratios)
This includes your monthly mortgage payment—principal, interest, property taxes, homeowner’s and/or flood insurance, and any HOA dues (PITI(A))—divided by your gross monthly qualifying income.
Total Debt Ratio (aka Back-End Ratios)
This includes the housing expense plus all other monthly debt like car loans, credit cards, and student loans, also divided by your gross income.
Alimony and child support can either help or hurt loan qualifying since they either count as income and lower your Debt Ratio or will be treated as a liability and increase your Debt Ratio.
Also, remember that non-taxable income may also be “grossed up” which is a formula that increases a borrower’s qualifying income.
What is the “6/36 Rule”?
The “6/36 rule” refers to the general mortgage guideline used to determine if alimony or child support payments can be considered qualifying income. According to this guideline the recipient must have consistently received the support payments for at least the past 6 months and also be expected to continue receiving them for at least the next 36 months. This ensures the income is stable and reliable for loan qualification purposes.
Drafting Tip – Marital Settlement Agreement
A properly structured MSA can help ensure these payments work within the 6/36 rule so they count towards qualifying income. This can be crucial for the divorcing homeowner to qualify for a refinance or for the departing spouse to obtain a new mortgage.
Summary
Understanding the interplay between alimony, child support, and mortgage qualification is essential for successfully navigating housing decisions after divorce.
A properly structured settlement agreement can significantly improve your financial flexibility, helping to determine whether you qualify for refinancing or to purchase a new home.
🧭 Work With a Team That Understands Both Mortgages and Divorce
At Metroplex Mortgage Services, our Divorce Lending Practice Group works alongside family law attorneys to:
✅ Draft lender-compliant settlement terms
✅ Preserve client eligibility for equity buyouts
✅ Maximize equity and available loan options
✅ Provide expert insight on credit qualifying, income analysis, and loan requirements
Whether you’re drafting the MSA or troubleshooting post-decree financing, we can help ensure mortgage eligibility aligns with settlement intent.
📞 Let’s Connect Before the Agreement Is Finalized
If your client intends to keep the home, early planning makes all the difference. Contact us to review options, assess qualifying limits, and ensure enforceable, mortgage-compliant terms.
📱 Call/Text: 813-935-8330
📞 Office: 800-806-9836 Ext. 280
✉️ Email: SeanS@MPLX.org
🗂️ A Note to Our Valued Family Law Partners
We appreciate your continued referrals and the trust you place in our Divorce Lending Practice Group. We’re proud to serve as your partner for navigating mortgage related issues during divorce.
📅 Now Scheduling In-Office & Virtual Presentations
On a scheduling note, we’re currently coordinating in-office and virtual presentations for Florida family law firms. Each session is customized to address:
- Equity buyout refinance planning
- Purchase options and down payment requirements
- Credit Scores and Debt-to-Income Ratios
- How to structure enforceable mortgage-related provisions
📥 Contact my office today to reserve your preferred date.
Thank you again for forwarding and sharing today’s post with any attorneys, clients, family, or friends who may be in need of our divorce mortgage lending expertise.
As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!
P.S. – You can download our “Divorce Lending Blueprint for Success” by CLICKING HERE.
