Overdue child support and homeownership

It is not completely impossible for Texas parents who have overdue child support obligations to obtain a loan to purchase a home. However, they should realize that having delinquent child support is considered a derogatory credit event and can possibly impair their chances of having their mortgage application approved.

The first step a person should take is to obtain a copy of his or her credit report and carefully review what has been listed. People should verify that all of the line items are correct and determine if their FICO score is within the requirements set by mortgage lenders. In order to determine if they will be able to afford a mortgage payment while paying off their child support arrearage and any current debts they may have, they should use a home affordability calculator.

In July 2017, the three main agencies for credit reporting modified how they report tax and civil liens, including those judgments that are related to delinquent child support. Parents with overdue child support obligations may find that the delinquency may not be noted on their credit report or affect their credit score.

Parents who are making payments on overdue child support will not be disqualified automatically from receiving a nongovernment loan if they have a credit score that is sufficiently high. When they are completing their mortgage application and noting the debts they have, they will be required to report their existing obligation and the extra payment that they must make for overdue support.

A family law attorney may work to ensure that clients who are owed child support receive the payments. A lawyer may petition the family court to initiate child support enforcement procedures. Litigation may be used to seek a modification to an existing child support order in a situation in which there are changes in financial circumstances.

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