What verification is required for child support in FHA loans?

For FHA loans, verifying child support involves providing a Divorce Decree along with three months of canceled checks. This approach ensures that the lender can confirm both the obligation for child support and the consistency of its payment. The Divorce Decree outlines the terms of the child support agreement, including the amount owed, while the canceled checks serve as proof of payments made over the preceding months. This combination of documentation provides a clear financial picture for lenders, establishing that the borrower receives a reliable income source through child support, which can be considered in debt-to-income calculations and overall loan qualification.

The other options do not provide the necessary verification format as stipulated by FHA guidelines. For instance, using tax returns and employment verification might not adequately reflect the ongoing child support payments, especially if they haven’t been consistently made or documented. Bank statements and income statements alone might not prove the consistent payment of child support without specific context. A signed affidavit and court order may not fully satisfy the documentation required by lenders for assurance of payment history and compliance with the child support obligation.