Does Alimony Count?

[CharLyn]

My boyfriend is considering buying a second home. He just refinanced his current home and is would like to rent it out.

 

He would like to do a VA Loan on the new purchase. Refi was not VA.

 

He currently receives alimony and child support and has since July of 2011. The alimony will continue through July 2013. He is in the reserves and grosses about $40k annually, $50k with child support, and $60k including alimony. Is he able to use the alimony as an income source for qualifying for a VA loan?

 

Other than his current mortgage of $875, he has very little debt. Maybe a credit card with a minimum payment of $50. No car payment and an incredibly GREAT credit score of ~800.

 

Any information or suggestions on options avaliable you can give will be helpful!

[Brian B The Loan Professor]

My boyfriend is considering buying a second home. He just refinanced his current home and is would like to rent it out.

 

He would like to do a VA Loan on the new purchase. Refi was not VA.

 

He currently receives alimony and child support and has since July of 2011. The alimony will continue through July 2013. He is in the reserves and grosses about $40k annually, $50k with child support, and $60k including alimony. Is he able to use the alimony as an income source for qualifying for a VA loan?

 

Other than his current mortgage of $875, he has very little debt. Maybe a credit card with a minimum payment of $50. No car payment and an incredibly GREAT credit score of ~800.

 

Any information or suggestions on options avaliable you can give will be helpful!

Since the Alimony only lasts into next year that cannot be counted - if the child support continues for 3 more years it may possibly be counted.

 

So long as the income supports both payments it should be ok based on what has been shared.

The Debt to income ratio will be key on this.

 

B