North Carolina residents who owe back child support and are looking to purchase a home may be concerned about whether their delinquent child support payments will hinder their efforts to be a homeowner. They should be aware that delinquent child support can qualify as a derogatory credit issue, which can lower the likelihood that they will be approved for a mortgage. However, they may have other options as there are loan programs that do not disqualify applicants because of child support arrearage.
It is important that people who want to purchase homes examine their credit reports. They should review all of the line items that are reported and determine if their FICO score is in line with the requirements set by the lender. Individuals should then use a home affordability calculator to determine if they will be able to pay a mortgage while having to make payments for their past due child support payments and any other debts they may have.
In July 2017, the three main credit reporting agencies modified the manner in which they report tax and civil liens. This includes how they report overdue child support payments. As a result, the delinquent payments may not appear on an individual's credit report or may not affect his or her credit score.
For individuals whose credit scores qualify them for conventional, non-government loans, having to pay delinquent child support payments may not be an automatic disqualification. When detailing their debts for a mortgage application, applicants will be required to report all of their existing support obligations in addition to the extra payment.
A family law attorney may work to protect the interests and rights of clients during disputes regarding a range of issues, such as child support. Depending on the circumstances of the case, litigation may be used to ensure that support obligations are met.