Overdue child support and homeownership

Prospective Oklahoma homebuyers who are delinquent in paying child support should be aware that these payments are considered debt for mortgages purposes. This means that delinquent child support is counted as a derogatory credit event that can impair the chances of obtaining a mortgage approval. While such a low mark can be a major hindrance, there are other options that may allow a buyer to qualify for a mortgage.

When trying to obtain a mortgage, it is important that a buyer obtain a copy of their credit report and examine what is being disclosed. They should also determine if their FICO score falls within the requirements set by mortgage lenders. To determine if monthly mortgage payments will be affordable while having to pay any overdue child support, one can enter their information in a home affordability calculator.

In July 2017, the three main agencies that oversee credit reporting modified the way they report tax and civil liens, including any judgements related to delinquent child support. This means parents who are overdue on child support payments may not see the arrearage on their report, and it may not negatively impact their credit score.

Having to make payments on overdue child support is not an issue that will automatically disqualify a parent from qualifying for a non-government loan if their credit score is sufficiently high. When completing a mortgage application, however, one will have to report their existing child support obligations.

A family law attorney may help a client resolve issues regarding child support. If necessary, legal counsel could seek modifications to existing child support orders or initiate enforcement procedures.