Yes, you can. The rules for Fannie Mae state that if there is 12 months of payment history of the spousal support AND there is proof in the decree stating three more years of continuing spousal support from the date of closing, the spousal support may be used as income to qualify.

There can be exceptions to this as well. I have a case where the underwriting findings from Fannie Mae allowed for just THREE months of historical proof AND three years of continuance. In December 08 we had the three month historical proof prior to the decree being finalized.  By planning with our referring attorney and opposing counsel, we worked out the three years of continuing maintenance in the decree.

A consultation with a mortgage advisor can help a client determine the exact underwriting standards that they would be subject to given their credit, employment, and equity position. Many family law professionals appreciate having this knowledge prior to mediation or trial.

Example: Bob & Jane are going through a divorce. Jane will want to purchase a home after the divorce is final. Her attorney, knowing she will need three years of continuing spousal support in order for her to qualify for a home loan, negotiates three years and six months of support. The additional six months will give Jane time to qualify for a mortgage and find a home.

Guest Blogger Jeff McGinnis
Wallick & Volk
www.mcginnismortgage.com