Buying a home while in arrears for child support

Some parents in California who have fallen behind on child support payments might wonder if they are automaticallydisqualified from getting a mortgage loan. While being delinquent on child support payments can be a liability, it does not necessarily mean that the parent can’t buy a home.

The federal database called CAIVRS includes parents who are delinquent on child support payments. Unfortunately, inclusion on CAIVRS disqualifies people for federal loans. The easiest solution might be simply to take out a personal loan and pay off the debt. Another option for removal from CAIVRS is to return to court and make a written agreement with the other parent that includes a payment plan. It is also necessary to demonstrate that the payments are being made regularly as agreed. Parents are also disqualified from FHA, VA and USDA loans if they owe back support.

Because of the way judgments are reported by credit agencies, child support delinquencies may not appear on credit reports. Child support delinquency will not disqualify a person from a Fannie Mae loan or a nongovernment loan. However, they must meet the necessary qualifications regarding FICO score and debt-to-income ratio. Having savings could also make a person more likely to qualify. Furthermore, the applicant must also include the child support debt and obligations in paperwork.

A parent who has a change in income that results in a difficulty in making child support payments may also go to court and request a modification. If the modification is granted, it is not retroactive. Therefore, the person will still owe for any unpaid support up to that point. For this reason, it is best not to procrastinate if a modification is needed. An attorney could help with this process.