Key takeaways
- There’s no universal waiting period for buying a house after divorce; what lenders evaluate instead is whether any mortgage you’re still on, any alimony or child support, and any settlement money are documented.
- Your decree can assign the old mortgage to your ex, but it doesn’t take you off the loan.
- Fannie Mae, Freddie Mac and FHA rules all allow a lender to leave a court-assigned mortgage out of your DTI, each with its own documentation conditions. Agency rules set the floor; individual lenders can add stricter requirements.
- Under Fannie Mae rules, support you pay counts as debt if more than 10 months remain.
- Under Fannie Mae rules, support you receive may count as income after 6 months of receipt, with 3 years left.
- Settlement money needs to clear into your own account, with a paper trail from the decree.
Is there a waiting period to buy a house after divorce?
No. There’s no universal waiting period after divorce before you can qualify for another mortgage. What matters is what your divorce left on paper: whether you’re still liable for the old mortgage, what your decree or separation agreement says about support, and whether settlement money can be traced.
Lenders evaluate the debts, income and assets your divorce created, not the divorce itself. Under Regulation B, a lender can’t discriminate against an applicant on the basis of marital status.
If you’re still on the mortgage for the house your ex kept
What your divorce decree does and doesn’t do
Your decree decides who pays the mortgage between you and your ex. It doesn’t change your contract with the lender. The CFPB explains that a creditor can still collect from anyone named on the loan, and that you generally stay liable until the lender releases you or your ex refinances without you. Signing a quitclaim deed takes you off the title, not the mortgage.
The same goes for other joint debts. A credit card, car loan or personal loan that your decree doesn’t specifically assign to your ex will generally stay in your DTI unless it qualifies for another exclusion, such as documented payments by someone else.
When the old payment can be left out of your DTI
On a conventional loan, Tomo Mortgage can leave the old payment out of your debt-to-income ratio (DTI) once you provide the finalized, court-stamped divorce decree or legal separation agreement that assigns the mortgage to your ex. You don’t need 12 months of payments from your ex first.
That matches the agency rules. Fannie Mae’s Selling Guide treats a court-assigned mortgage you haven’t been released from as a contingent liability the lender isn’t required to count, and Freddie Mac’s Guide lets it be excluded once the court order is documented, whether or not the lender has released you. Under Fannie Mae’s rules, your payment history from before the assignment still counts, so late payments while you were married can still come up.
FHA loans follow a similar rule. HUD’s handbook lets a debt assigned by a divorce decree or other court order stay out of your DTI without proof of 12 months of your ex’s payments, as long as the lender has a copy of the decree or order.
No court order yet? Under Fannie Mae guidelines, a lender can still leave out the payment if your spouse is also on the loan, has made the payments with no late payments in the most recent 12 months, and you’re not using rental income from that home. Expect to show 12 months of canceled checks or bank statements.
VA and USDA loans set their own requirements for this situation.
What agency rules allow vs. what a lender will do
The agency rules above are permissions, not guarantees. “Isn’t required to count” means a lender may leave the payment out; it doesn’t mean every lender will. Lenders can add their own stricter requirements, called overlays, such as asking for 12 months of your ex’s on-time payments even when you have a decree. Before you apply anywhere, ask the lender directly: “Will you exclude a court-assigned mortgage with just the decree, or do you need a payment history too?”
Your ex’s late payments can still hurt you
Leaving the payment out of your DTI doesn’t take the loan off your credit report. As long as your name is on the note, a late payment by your ex is reported on your credit too and can lower your score, which can change your rate or whether you qualify. Fannie Mae doesn’t require the lender to review the loan’s payment history after the assignment date, but your score still reflects it. Keep an eye on that loan through your credit report until your ex refinances or the lender releases you.
If you’re keeping the house and buying out your ex
On a Fannie Mae loan, refinancing to buy out your ex’s share can be treated as a limited cash-out refinance rather than a cash-out refinance, if the home was jointly owned for at least 12 months before the new loan funds (B2-1.3-02). Cash-out refinances generally come with lower loan-to-value limits, so this classification can matter.
Fannie Mae’s conditions for a buyout refinance:
- Both of you sign a written agreement stating the terms of the property transfer and how the refinance proceeds will be split.
- You document that the home was jointly owned for at least 12 months.
- You, as the person keeping the home, can’t receive any of the proceeds; they go to buying out your ex.
- You qualify for the new loan on your own income and debts.
If the decree already awarded you the home and your ex is off the title, you can still refinance: Fannie Mae makes an exception to its on-title requirement for a borrower legally awarded the property through a divorce or separation. The refinance is also the step that typically takes your ex off the loan, which releases them from liability on it.
How alimony and child support affect what you may qualify for
If you pay child support
Under Fannie Mae guidelines, alimony, child support, equalization payments or separate maintenance you’re required to pay under a decree, separation agreement or other written legal agreement count as monthly debt when more than 10 months of payments remain. Voluntary payments beyond what’s required don’t have to be counted.
For alimony, equalization payments and separate maintenance, the lender can instead subtract the payment from your qualifying income. Child support doesn’t get that option.
If you receive child support
Support you receive can be included at preapproval, but underwriting has to verify it. If the receipt history or proof that payments will continue can’t be documented, the income is removed, and at Tomo Mortgage that’s one of the more common reasons a qualifying amount changes before closing.
Sharing support income is your choice. Under Regulation B, a lender that asks about it must tell you that you don’t have to reveal it. Fannie Mae lets a lender count it only if you list it on your application and ask that it be used.
To count it, Fannie Mae requires:
- A decree, separation agreement or other written legal agreement showing the amount and terms
- At least six months of full, regular, on-time payments, shown in bank statements, canceled checks or other deposit records
- Evidence the payments will continue at least three years from the loan’s note date; lenders check end dates, including children’s ages and the length of an alimony term
Child support is usually tax-free, so Fannie Mae lets a lender “gross it up” when calculating your qualifying income. Fannie Mae and Freddie Mac commonly allow a 25% gross-up: $1,000 a month in documented child support can count as $1,250. Ask your lender whether they apply it.
FHA asks for less receipt history but has the same continuance test. HUD’s handbook requires proof of the most recent three months of receipt for court-ordered support, plus evidence the payments will continue for at least three years. It also accepts a voluntary payment agreement documented with 12 months of canceled checks, deposit slips or tax returns.
Example: how the decree changes your DTI
In this example, documenting the decree takes DTI from 60% to about 34%, and counting child support brings it to about 29%. The numbers are illustrative.
Say you earn $7,000 a month before taxes. Your new home’s payment would be $2,000 a month including taxes and insurance, and you have a $400 car payment. Your name is still on the old $1,800 mortgage, which your decree assigns to your ex. You also receive $1,000 a month in court-ordered child support with more than three years left.
| What the lender can document | Monthly debts | Monthly qualifying income | DTI |
| No decree yet: old mortgage counted, support not counted | $4,200 | $7,000 | 60.0% |
| Decree assigns the old mortgage to your ex | $2,400 | $7,000 | 34.3% |
| Plus six months of child support receipts | $2,400 | $8,000 | 30.0% |
| Plus a 25% gross-up of the child support | $2,400 | $8,250 | 29.1% |
At 60%, this borrower is far outside what conventional loans allow; Freddie Mac, for example, won’t buy a manually underwritten loan with DTI above 45% (5401.2). The decree alone moves them into range. Every row after the first depends on a document, not on the borrower’s situation changing.
Using settlement money for your down payment
Settlement money can go toward your down payment or closing costs once it has cleared into your own account. Promised proceeds from a buyout or an asset split that haven’t arrived yet can’t be counted. To document settlement funds, Tomo Mortgage typically asks for:
- Your final, signed, court-stamped divorce decree and marital settlement agreement, with all pages and schedules
- The Closing Disclosure or settlement statement from the sale or refinance of the marital home, if that’s where the money came from
- Wire confirmations or bank statements showing the deposit into an account in your name alone
The paper trail matters because Fannie Mae requires lenders to evaluate any single deposit larger than half your total monthly qualifying income, and a settlement payment will usually cross that line. It’s the same reason lenders track all your deposits.
Fannie Mae doesn’t count a lump-sum equalization payment as a steady source of income (B3-3.4-02). Once it’s in your account, it’s documented like any other funds for your down payment.
Buying a house while separated
You can be preapproved while legally separated. Tomo Mortgage asks for your executed legal separation agreement or marital settlement agreement, plus proof that your down payment funds belong to you alone and are separate from marital assets. Without a signed agreement, less can be counted: under Fannie Mae guidelines, proposed or voluntary support isn’t treated as income, while FHA accepts a voluntary payment agreement backed by 12 months of payment records.
If you’re still married and live in, or are buying in, a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin), FHA rules require your spouse’s debts to be counted in your DTI unless state law excludes them, even though your spouse isn’t on the loan. The lender will also need a credit report for your spouse. Your spouse may also need to sign the mortgage if state law requires it for the lien to be valid. Talk with your divorce attorney before you sign a purchase contract.
What to have ready before preapproval
Each situation below has a document that answers the lender’s question. Everything else follows the usual mortgage document list.
| Your situation | What a lender may look at | What to gather |
| A court order assigned the old mortgage to your ex | Whether the payment can stay out of your DTI | Complete, court-stamped decree or separation agreement, all pages and schedules |
| No court order; your spouse pays the joint mortgage | 12 months of on-time payments by a co-borrower (Fannie Mae) | 12 months of bank statements or canceled checks for those payments |
| Joint debts beyond the mortgage | Debts not assigned to your ex stay in your DTI | Decree pages that list who pays each debt |
| You’re keeping the house and buying out your ex | 12 months of joint ownership; a signed buyout agreement (Fannie Mae) | Written agreement signed by both of you; deed or title records showing joint ownership |
| You pay alimony or child support | The obligation as monthly debt, or for alimony, an income reduction | The agreement showing amount and end date |
| You receive support you want counted | Receipt history and 3 years expected to continue | The agreement plus deposit records (6 months under Fannie Mae; 3 months for court-ordered support under FHA) |
| You received settlement money | Whether funds have cleared into your own account | Decree and settlement agreement; Closing Disclosure if from a home sale; deposit statement |
| Separated, no final decree | An executed agreement; down payment separate from marital assets | Signed legal separation agreement or marital settlement agreement |
A preapproval shows how a lender reads the documents you have today.
See what you may qualify for after divorce. Get preapproved with Tomo Mortgage using a soft credit check that doesn’t affect your credit score. A hard credit inquiry happens later, when you submit a full mortgage application.
Tomo Mortgage · NMLS #2059741 · Equal Housing Lender
Frequently asked questions
Can I get a mortgage if my ex is supposed to pay our old mortgage?
On a conventional loan, Tomo Mortgage can leave a mortgage assigned to your ex out of your DTI once you provide the finalized, court-stamped decree, without 12 months of your ex’s payments. HUD’s FHA rules also allow it with a copy of the decree. Under Fannie Mae’s rules, late payments from before the assignment still count. Other lenders may require more, so ask before you apply.
Do I need my final divorce decree to get preapproved?
No. You can be preapproved while legally separated with an executed legal separation agreement or marital settlement agreement. Without a signed agreement, less can be documented: under Fannie Mae guidelines, proposed or voluntary support isn’t counted as income, and a mortgage can only be treated as court-assigned once a court order exists.
Will a lender ask whether I receive alimony or child support?
Under Regulation B, a lender that asks whether your income comes from alimony or child support must tell you that you don’t have to reveal it if you don’t want it considered. If you do want it counted, you list it on your application and ask that it be used.
Can child support count if my child turns 18 soon?
Under Fannie Mae guidelines, support income must be expected to continue at least three years from the loan’s note date. Lenders check limits such as children’s ages, so support set to end sooner generally can’t be used as qualifying income.
Am I a first-time homebuyer again after divorce?
You may be. HUD’s definition counts a single parent who has only owned a home with a former spouse while married, and a displaced homemaker who has only owned with a spouse. It also counts anyone who hasn’t owned a principal residence in the past three years. Being divorced doesn’t by itself qualify you, and other programs define the term their own way. See whether there’s a first-time homebuyer loan for you.
Does getting preapproved affect my credit score?
Tomo Mortgage uses a soft credit check at preapproval, so getting preapproved doesn’t affect your credit score. A hard credit inquiry happens later, when you submit a full mortgage application.