Short answer
Mortgage qualification after divorce is based on income, liabilities, credit, assets and the property — with additional documentation of your settlement agreement, support terms and the treatment of any prior joint mortgage.
The five pillars
Nothing exotic here, but each pillar has a divorce wrinkle:
- Income — including support only when it meets program requirements
- Liabilities — including support paid and any remaining joint debt
- Credit — including any damage from missed joint payments
- Assets — sourced and seasoned after distribution
- Property — value, condition and loan-to-value
Documentation is the differentiator
In divorce files, the deciding factor is usually documentation quality, not exotic underwriting. Clear, executed agreements and clean proof of receipt or payment make the file straightforward.
Frequently asked
Will underwriting read my whole settlement agreement?
Often yes, at least the portions covering property, support and any refinance obligations. Wording matters.
About the author
Abdel Khawatmi, CDLP®
Certified Divorce Lending Professional and founder of Got Mortgages, a division of Paramount Residential Mortgage Group, Inc. Abdel works with divorcing homeowners, attorneys, mediators, financial professionals and real estate professionals across New Jersey. NMLS #1712023. He is not an attorney, tax advisor or financial advisor, and this article is educational only.