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FHA – Child Support Payment & Paystub Requirement
Question:
I have a borrower who is obligated to pay child support and just started a new job, so he doesn’t have the 28 days of paystubs that underwriting requires. They are telling me there are no exceptions to this guideline, which, unfortunately, will push my borrower past their close date.
Answer:
Your underwriter is correct, and you need 28 days on the current job to determine if there are any other garnishments over the entire period. You will not be able to use the previous job as it is not current and has not shown any changes in the last 6 months. This guidance is from the 4000.1 Evaluating Liabilities under the credit evaluation. Section E (Alimony & Child Support Payments) under (3) Required Documentation.