Definition
Child support or spousal support payments received regularly can be counted in mortgage qualifying income, under certain conditions:
**General conditions**: - Divorce judgment or legally signed separation agreement - Payment history of at least 12-24 months (A-lenders often require minimum 12 months) - Proof of receipt: bank statements showing regular deposits - Remaining duration: some lenders require the support to be payable for at least 3 more years
**Treatment at A-lenders**: inclusion in gross income at 100%, with full documentation of judgment and bank statements.
**Support payments made**: conversely, support payments the borrower makes are treated as a monthly debt in TDS calculation (even if not deductible federally for new post-1997 agreements).
Informal support (verbal agreement) is generally not accepted by A-lenders.