How does divorce or alimony payments affect mortgage eligibility in Oregon?

@brandon_lockman 

In general, divorce or alimony payments can affect mortgage eligibility in Oregon in a few ways:

1. Income Qualification: Alimony payments received by the borrower may be counted as income when applying for a mortgage, which can help qualify for a larger loan amount. Conversely, alimony payments made by the borrower may be considered as a financial obligation that reduces the borrower's income available to repay the mortgage.
2. Debt-to-Income Ratio: Alimony payments made by the borrower are usually considered as a recurring monthly debt obligation, which can affect the borrower's debt-to-income ratio (DTI). Lenders typically prefer a lower DTI to ensure that the borrower can comfortably afford the monthly mortgage payments.
3. Documentation: Lenders may require documentation of alimony payments as part of the mortgage application process, including court-ordered alimony agreements or divorce decrees. This documentation helps verify the borrower's financial obligations and income sources.

It's important for borrowers going through a divorce or paying/receiving alimony to discuss their situation with a mortgage lender to understand how these factors may impact their mortgage eligibility in Oregon. Each individual's financial situation is unique, and a lender can provide personalized guidance based on the specific circumstances.