Noncustodial parents who want to apply for a mortgage in Ohio should be aware that child support is considered a type of debt. If there are overdue child support payments, they can be counted as a derogatory credit event and negatively impact the chances of being approved for a mortgage. However, having child support arrearages on one’s credit record does not mean that it’s impossible to qualify for a mortgage.
Someone who wants to apply for a mortgage has to check their credit report to determine if the line items are accurate and if their FICO score is sufficient enough to meet the requirements set by the lender. The applicant should then use a home affordability calculator to determine if they can handle a mortgage while satisfying their current debts and delinquent child support payments.
In July 2017, the three main credit reporting agencies modified how they reported tax and civil liens, including judgments related to overdue child support. People who have such liens should carefully review their credit reports. It’s possible that the liens may not be on their reports or affect their credit scores.
For individuals who have a credit score that is high enough to qualify them for a non-government, conventional loan, the fact that they are making payments on overdue child support will not be enough to disqualify them. When detailing debts on mortgage applications, they are required to list both the back-payments and current child support payments as debts.
A family law attorney may assist a client with issues regarding child support determinations. Legal counsel could also assist a client who wants to obtain overdue child support payments or modify a payment agreement.