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Key takeaways<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n Lenders evaluate the debts, income and assets your divorce created, not the divorce itself. Under Regulation B<\/a>, a lender can’t discriminate against an applicant on the basis of marital status.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Your decree decides who pays the mortgage between you and your ex. It doesn’t change your contract with the lender. The CFPB explains<\/a> 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<\/a>, not the mortgage.<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n On a conventional loan, Tomo Mortgage can leave the old payment out of your debt-to-income ratio (DTI)<\/a> 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.<\/p>\n\n\n\n <\/p>\n\n\n\n That matches the agency rules. Fannie Mae’s Selling Guide<\/a> 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<\/a> 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.<\/p>\n\n\n\n <\/p>\n\n\n\n FHA loans<\/a> follow a similar rule. HUD’s handbook<\/a> 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.<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n VA and USDA loans set their own requirements for this situation.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n 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?”<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n 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<\/a>). Cash-out refinances generally come with lower loan-to-value limits, so this classification can matter.<\/p>\n\n\n\n <\/p>\n\n\n\n Fannie Mae’s conditions for a buyout refinance:<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n Under Fannie Mae guidelines<\/a>, 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.<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n Sharing support income is your choice. Under Regulation B<\/a>, a lender that asks about it must tell you that you don’t have to reveal it. Fannie Mae<\/a> lets a lender count it only if you list it on your application and ask that it be used.<\/p>\n\n\n\n <\/p>\n\n\n\n To count it, Fannie Mae requires:<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n FHA asks for less receipt history but has the same continuance test. HUD’s handbook<\/a> 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.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n\n
<\/li>\n<\/ul>\n\n\n\nIs there a waiting period to buy a house after divorce?<\/h2>\n\n\n\n
If you’re still on the mortgage for the house your ex kept<\/h2>\n\n\n\n
What your divorce decree does and doesn’t do<\/h3>\n\n\n\n
When the old payment can be left out of your DTI<\/h3>\n\n\n\n
What agency rules allow vs. what a lender will do<\/h3>\n\n\n\n
Your ex’s late payments can still hurt you<\/h3>\n\n\n\n
If you’re keeping the house and buying out your ex<\/h2>\n\n\n\n
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How alimony and child support affect what you may qualify for<\/h2>\n\n\n\n
If you pay child support<\/h3>\n\n\n\n
If you receive child support<\/h3>\n\n\n\n
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Example: how the decree changes your DTI<\/h2>\n\n\n\n