Fannie Mae Selling Guide B3-3.4-02 — Alimony, Child Support, Equalization Payments, or Separate Maintenance

Fannie Mae Selling Guide B3-3.4-02 — Alimony, Child Support, Equalization Payments, or Separate Maintenance

Effective 2026-03-04 · publisher's stamp for this provision

B3-3.4-02, Alimony, Child Support, Equalization Payments, or Separate Maintenance (03/04/2026) The lender may include alimony, child support, equalization payments, or separate maintenance as income only if the borrower discloses it on the Uniform Residential Loan Application and requests that it be considered in qualifying for the loan. The following table provides requirements for alimony, child support, equalization payments, or separate maintenance. Criteria Requirements Documentation The lender must obtain evidence of the payment amount and terms using one of the following: • a copy of a divorce decree or separation agreement (if the divorce is not final) Note: If a borrower who is separated does not have a separation agreement that specifies alimony or child support payments, the lender should not consider any proposed or voluntary payments as income. • any other type of written legal agreement or court decree describing the payment terms, or • documentation that verifies any applicable state law that mandates alimony, child support, equalization payments, or separate maintenance payments. Additionally, the lender must document receipt of income for the most recent six months using sources including, but not limited to: • bank statements, • cancelled checks, or • evidence of other electronic receipt of payments. Criteria Requirements Income History • A minimum six-month history is required. • The payment history must demonstrate the stability of the income, as reflected in the receipt of full, regular, and timely payments. Note: Lump sum equalization payments are not considered a steady source of income. Income Continuance The lender must document that the income is expected to continue for at least three years from the note date. Note: Check for limitations such as the age of the children for whom the support is being paid, or the duration over which alimony is required to be paid. Determination of Qualifying Income The monthly payment amount as documented above may be used as qualifying income. Note: The full amount of documented qualifying child support income is nontaxable and may be grossed up. See B3-3.1-01, General Income Information. DU Validation Service If a borrower's alimony or child support income is validated by the DU validation service, DU will issue a message indicating the required documentation. This documentation may differ from the requirements described above for the verification of the borrower's regular receipt of the full payment and its use as stable qualifying income. See B3-2-02, DU Validation Service

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