Home Purchase Mortgage Calculators
Mortgage Program Calculators
When you apply for a mortgage it is o.k. to not include alimony as a source of income, especially if you do not report alimony on your tax returns. It sounds like you would prefer to not use alimony as income on your mortgage application which is fine. This also means that not reporting alimony on your tax returns should not be an issue when it comes to getting a mortgage. We provide a comprehensive overview of the mortgage application on FREEandCLEAR.
Usually borrowers want to include alimony as a source of income when they apply for a mortgage because the additional income enables them to qualify for a larger loan amount. Lenders typically require that borrowers who include alimony income on their mortgage application also report the alimony on their tax returns because this allows the lender to verify the income.
Please note that some lenders request that divorced borrowers provide a copy of the the divorce agreement including an alimony schedule. Lenders are typically focused on alimony obligations that borrowers are required to pay but may also review these documents for borrowers who receive alimony and include it as a source of income on their mortgage application. Underwriting guidelines on this issue vary by lender and it is less relevant for borrowers who do not report alimony income on their mortgage application.