When a California resident is thinking about buying a house, he or she should expect that, at some point, a review of his or her credit report will take place. Various issues can negatively affect a credit report, including being behind on child support payments. This acts as a derogatory credit event that can, under certain circumstances, impede the ability to purchase a home.
The type of loan one is pursuing may be a factor in whether or not a child support issue will have a negative impact on a home purchase. If one seeks to obtain a government-backed loan, there is a definite possibility that not paying child support that is owed will prevent loan approval. It is critical to determine whether one can afford a prospective mortgage in conjunction with owed child support and other financial debts.
Last year, several credit reporting agencies changed the way they report owed child support issues. In some situations, this may be to a prospective home buyer's advantage because overdue child support may not necessarily show up on a credit report. If a credit score is high enough, then making back-payments for child support may not necessarily disqualify a potential loan application.
If a California non-custodial parent owes at least $25 in child support and is 30 days or more overdue in payments, chances are that he or she will not be approved for a government-backed home mortgage loan. There are often debt relief options available to help resolve such problems. By consulting with an experienced family law attorney, a concerned parent may be able to rectify support payment issues that are currently impeding his or her ability to obtain mortgage loan approval.