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Question: 1 / 605

How long must alimony payments continue to be received after the application date for them to be included as income?

1 year

2 years

3 years

In order for alimony payments to be considered as income for mortgage loan applications, they must be received for a minimum duration after the application date. Specifically, the requirement is that these payments must continue for at least three years from the date of the application. This ensures that the income can be reliably counted towards the borrower's ability to repay the mortgage. Lenders prefer to have this timeframe as it provides a reasonable assurance that the alimony payments will continue for a significant period, thereby reducing the risk associated with fluctuating personal circumstances that can affect financial stability.

The requirement highlights the importance of consistent and dependable income in mortgage underwriting. By setting a standard of three years, it reflects an understanding of the typical duration of alimony obligations and aligns with broader practices in financial assessments related to long-term income sources.

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5 years

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