How child support debt affects mortgage eligibility

Texas parents who have fallen behind on paying child support might wonder if they can still qualify for a mortgage. First, the parent should check credit reports. With a high enough credit score, the person may qualify for a nongovernmental loan. Credit reporting agencies have changed how they record some types of debt. In fact, a child support debt might not even appear on a credit report. Falling behind on child support would not disqualify the applicant; although, it would be necessary to reveal the debt and the payment obligation. 

Child support debt is not disqualifying for a Fannie Mae loan, but the applicant must meet certain standards related to credit score, debt-to-income ratio and the down payment. The person might not be eligible for an FHA, VA or USDA government-backed loan. An individual who has been reported to the federal database known as CAIVRS for nonpayment of child support might also be ineligible. However, it is possible to be removed from this database. The parent needs to make a written agreement with the court or custodial parent and prove that payments are being made regularly.