3 Years, 4 Factors: How Alimony and Child Support Count on a VA Loan
3 years and 4 factors. Those two numbers decide whether the alimony, child support, or maintenance you receive can count as income on a VA loan. Matilda, a fictional borrower used here to illustrate a situation that comes up often, is house hunting near Hunter Army Airfield with a VA loan in mind. She receives support payments, and she assumed they would count automatically. They may not.
The 3-year clock
Matilda is not the first borrower to assume that money arriving every month is money a lender will use. The VA guideline is more specific. It starts with this: "Verify the income if the borrower wants it to be considered." Then it sets the clock: "The payments must be likely to continue for at least 3 years from the anticipated closing date to include them in effective income."
Two things stand out. First, the income has to be verified, and it is the borrower's choice to ask for it to be considered. Second, the three years are measured forward from the anticipated closing date, not from today and not from when the payments began.
The 4 factors
How does a lender decide whether payments are likely to continue? The guideline says the factors include, but are not limited to, these four:
1. A written agreement or court decree
Are the payments received under a written agreement or court decree? Matilda's handshake arrangement would not carry the same weight as a signed document.
2. How long the payments have been received
A longer history of receiving the payments supports the case that they will continue.
3. The regularity of receipt
Payments that arrive on a steady schedule tell a better story than payments that come and go.
4. Procedures to compel payment
The guideline also looks at the availability of procedures to compel payment, meaning what recourse exists if the payments stop.
What Matilda does with this
Matilda starts by working the clock backward. She picks her anticipated closing date, counts three years forward, and then reads her written agreement or court decree to see where the payment terms stand against that window. She does this before she falls in love with a house, because the answer affects how much income she can show.
Then she gathers the paperwork. The signed written agreement or court decree is the first document. The second is the record of payments received, which shows the length of time and the regularity of receipt, two of the four factors.
The question to ask your lender
Here is the exact wording Matilda uses, and you can use it too:
"I receive alimony or child support and I want it considered. Can you review my written agreement or court decree and tell me if the payments are likely to continue for at least 3 years from my anticipated closing date?"
That one question does three jobs. It tells the lender you want the income considered, which is where the guideline begins. It points them to the written agreement or decree. And it puts the 3-year test on the table in the first conversation, not the last.
Why this matters for veterans
For a veteran or service member using VA entitlement, support income can be a meaningful part of the picture. Knowing the test early lets you decide whether to lean on it, plan around it, or look at the rest of your income first. It also keeps you from shopping at a price range built on income that may not count.
Your next step
Pull out your agreement or decree today. Find the terms for how long payments last. Count three years from the date you expect to close. Print your record of payments received. Then bring all of it to a conversation with a lender who will actually read it.
I am Jason Sharon, a licensed mortgage broker, and I find the path for borrowers in exactly this spot. Call me at 843-LOW-RATE and we will go through your documents together.
Home Loans Inc - Jason Sharon, Mortgage Broker. Company NMLS #1728740, Jason Sharon NMLS #1281448. Equal Housing Opportunity.
Learn more about this loan program: 3 Years, 4 Factors
