Alimony - reduced from gross income to decrease debt ratio
Can a lender deduct monthly alimony as an annual amount from my gross income to reduce income to debt ratio in lieu of a monthly obligation?
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Yes, monthly alimony will be considered as an expense just like Auto and Credit Card monthly obligations and that will increase your debt ratio means it will lower the loan amount you will be qualified for the house loan. Example, if you make $8,000 and you have $1,000 other expense plus $500 alimony, then this is how it works. .50% of $8,000 = $4,000 less $1,000, less $500 = $2,500 left for mortgage which is for about $ 250,000 loan amount. I hope I answered your question. George Tesfa, Primary Residential Mortgage, Inc. http://www.TexasMortgageRate.com
Definitely talk with your lender! I have several that I work with around town. If you need someone shoot me an email.
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Your lender will be the best source for an accurate answer. However, I do know that it will depend also on how this alimony is accounted for on your most recent tax returns, and how the alimony is reflected on your three most recent bank statements.
The lender's underwriters (attorney review) go through the financials of a borrower with a fine tooth comb making sure everything matches up and makes sense.
Your bank activity of deposits and debits must all be accounted for, and these have to line up with what you are reporting on your tax returns.
I don't see a way your lender would be able to work around this; the alimony shows up in one place, and the underwriters will look elsewhere to see that it is reported accordingly in all your other financial records.
Ask a mortgage lender for further explanation.
The lender's underwriters (attorney review) go through the financials of a borrower with a fine tooth comb making sure everything matches up and makes sense.
Your bank activity of deposits and debits must all be accounted for, and these have to line up with what you are reporting on your tax returns.
I don't see a way your lender would be able to work around this; the alimony shows up in one place, and the underwriters will look elsewhere to see that it is reported accordingly in all your other financial records.
Ask a mortgage lender for further explanation.
You should ask a mortgage broker or lender.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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