Law Offices of John A. Guthrie
Free Initial Consultation
925-271-4342

Back child support and purchasing a home

A California parent who owes back child support is considered to have a derogatory credit event in their credit history. This child support arrearage could actually impair the chances of getting a loan approved to purchase a home. However, there are steps a parent can take to address the issue.

They should first verify what is being reported on their credit report, which can be obtained from any one of the three main credit reporting agencies. A prospective homebuyer should then note their FICO score and determine if it is within the guidelines established by the mortgage lender. It's also wise to use a home affordability calculator to determine if making monthly mortgage payments is feasible when overdue child support is owed as well.

In July 2017, the three main credit reporting agencies modified the manner in which they disclose tax and civil liens. The modification also applied to how the judgments related to overdue child support are reported. Therefore, a parent who owes overdue child support payments may find that the arrearage is not listed on their credit report. Thus, it will not influence the calculation of their credit score.

A parent with overdue child support obligations who needs a loan to purchase a home should know that Fannie Mae does not directly address child support delinquency. The factors that the agency takes into account when considering financing include down payments, credit scores and debt-to-income ratios.

A family law attorney may help a client resolve divorce legal issues, including matters related to child custody and support. The attorney could advise the client of their legal options regarding modifications to existing court orders. If the client is owed support, the court may be asked to begin child support enforcement procedures to obtain overdue payments.

No Comments

Leave a comment
Comment Information

Pleasanton Office
239 Main Street Suite H
Pleasanton, CA 94566

Phone: 925-271-4342
Fax: 925-461-9930
Pleasanton Law Office Map

Danville Office
4115 Blackhawk Plaza Circle
Suite 100
Danville, CA 94506

Phone: 925-648-2074
Map & Directions

Arrange A Free Consultation Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response Back child support and purchasing a home | Law Offices of John A. Guthrie