By Sam Wax
Buying a home after divorce in Florida can feel like starting over in every sense. You may be qualifying on one income for the first time in years, untangling shared debts, and wondering how a lender will see your new situation. Here’s the good news: most of what lenders look for comes down to a few documents and some honest math.
Get Your Paperwork in Order First
Your divorce decree is the court’s final order dividing your property, your debts, and any support payments. Most lenders want to see it, or a signed settlement agreement, before they approve a new mortgage. Until then, they can’t tell which debts are yours or how much income you’ll have.
You can still start the conversation early. A pre-approval is a lender’s written estimate of how much you may be able to borrow after reviewing your credit, income, and assets. It carries more weight than a pre-qualification, which is a quick estimate based on what you report yourself. Before you apply, gather these:
- Your final divorce decree or settlement agreement: Shows support terms and who is responsible for each debt.
- Proof of support payments: Bank statements showing alimony or child support deposits.
- Settlement or home sale paperwork: Shows where your down payment money came from.
Run the Numbers on a Single Income
Your debt-to-income ratio (DTI) compares your monthly debt payments to your monthly income before taxes. Say you earn $6,000 a month, and your car payment, credit cards, and new mortgage payment total $2,400, giving you a 40 percent DTI. Alimony or child support you pay with more than 10 months left also counts as a monthly debt. The maximum depends on your loan type and the rest of your file, so find out where you stand before you start touring homes.
Count Support Payments as Income
Alimony and child support you receive can count toward your income, depending on your situation. Fannie Mae requires at least six months of full, on-time payments and proof the support will continue for at least three more years. FHA loans, which are government-insured loans with more flexible credit requirements than conventional loans, generally look for three months of payments under a court order.
This is where timing trips up many buyers. If your payments just started, you may need to wait a few months before a lender can use them. Support that ends soon, like child support for a 17-year-old, likely won’t count at all.
Clean Up Old Joint Debts
Still on the old mortgage? If your decree assigns that loan to your ex, lenders can generally exclude it from your DTI with a copy of the court order. The same goes for joint car loans and credit cards your ex agreed to pay.
Your credit is a different story. Your credit score is a three-digit number, from 300 to 850, that reflects how reliably you pay your bills. Late payments on a joint account hurt both of you, even if the decree says your ex is responsible. Pull your reports from Equifax, Experian, and TransUnion, and keep every account you’re tied to current.
You May Count as a First-Time Homebuyer in Florida Again
Believe it or not, owning a home before doesn’t always rule you out. Under HUD’s definition, a single parent who only owned a home with a former spouse while married may count as a first-time homebuyer. Many programs also count you if you haven’t owned a home in the past three years. That status can open doors to Florida down payment assistance programs, though each program sets its own rules.
Use Your Settlement for the Down Payment
Your down payment is the cash you put toward the purchase up front. Money from your settlement or the sale of your old home can cover it, as long as you can show where it came from. Avoid shuffling money between accounts before you apply, since large deposits need an explanation.
Conclusion
Divorce changes your finances, but it doesn’t close the door on homeownership. With your paperwork ready and a clear picture of your income, buying your next home in Florida is a very reachable goal.
Whether you are a first-time buyer or looking to refinance, My Easy Mortgage, a reputable mortgage broker located at 2405 Creel Lane, STE 102, Wesley Chapel, FL 33544, and 16703 Early Riser Ave, Suite 266, Land O’Lakes, FL 34638, has a team of experienced professionals who can guide you through the process. Contact them at (813) 513-9846 to discuss your mortgage needs.
