Did you know that child support income can be grossed up for mortgage qualification? It’s true! Fannie Mae and Freddie Mac allow child support income to be grossed up by 125% because of its non-taxable status. This means that borrowers can potentially qualify for a higher loan amount based on this additional income.

Similarly, FHA allows child support income to be grossed up by 115%, providing another avenue for borrowers to increase their qualifying income. This can be especially beneficial for those who rely on child support payments as a significant portion of their income.

By taking advantage of these gross-up options, borrowers can potentially improve their debt-to-income ratio and increase their chances of qualifying for a mortgage. It’s important to work with a knowledgeable mortgage professional who can help navigate the various guidelines and requirements associated with using child support income for mortgage purposes.

If you receive child support income and are considering applying for a mortgage in New Jersey, be sure to explore these gross-up options to maximize your qualifying income. Contact us to learn more about how child support income can benefit your mortgage application.