The Quick Read: Child support can count as qualifying income on a cash-out refinance, but only when you choose to disclose it and the file documents it. The lender needs a written order or decree, a history of receipt, and proof the payments will keep going. The income then sits next to your credit, your debt ratio and the equity left after the appraisal. Subject to lender guidelines and full file review.
Does Child Support Count on a Cash-Out Refinance?
Yes, when it is documented and likely to continue. Federal fair-lending rules say a lender may not leave out income just because it is child support. When you rely on it, the lender must count it to the extent it is likely to be consistently made, according to Regulation B.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Two limits come with that. The lender can weigh the amount and the probable continuance of the support. And disclosure is your choice. A lender may ask about it only after telling you that you need not reveal it. If you want it counted, you bring it forward and document it.
Child support is also not a special case on a cash-out. The same income test applies on a refinance or a purchase. What changes on a cash-out is the equity math, which comes later here.
The Quick Eligibility Checklist
Before you apply, check these against your own paperwork:
- A divorce decree, separation agreement, court order or applicable state-law documentation that states the amount.
- A receipt history, usually bank deposits or state agency payment records.
- The ages of the children on the order, and the date support ends.
- A first mortgage that is at least 12 months old, measured note date to note date, if you are paying off an existing loan under conventional cash-out rules.
- Enough equity left after the appraisal to fit the leverage limit for your occupancy type.
How the Loan Is Underwritten, Step by Step
1. Decide whether to use the income. You choose. Nobody can require you to disclose child support. If your income qualifies without it, leaving it out is a legitimate option.
2. Application and automated findings. The loan officer runs the file through the agency automated system, or the file goes to manual underwriting. The system can return a message listing the documents it needs when it validates support income, as described in the Fannie Mae Selling Guide on child support.
3. Legal documents. The file needs the decree, agreement or court order showing the amount and terms. A separated borrower with no written agreement cannot count proposed or voluntary payments.
4. Proof of receipt. Fannie Mae requires a minimum six-month history of receipt. Freddie Mac requires binding documentation of the payor’s obligation covering the previous six months, showing amount and duration, per its Guide section 5305.2. Bank deposits or agency records are the usual proof.
5. Continuance test. The lender checks how long the payments will last. Support usually ends when the youngest child reaches the age set in the order, so the file needs the children’s ages. Fannie Mae’s guide requires the lender to check limits such as those ages. Ask your loan officer how long the support must continue under the guideline that applies to your file, and do not assume a period.
6. Income calculation. Qualifying child support is nontaxable, so the lender may gross it up. That raises the income figure used for the debt ratio. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
7. Cash-out seasoning and title. The first mortgage being paid off must be at least 12 months old, measured note date to note date. A borrower on title for six months is also part of the seasoning picture, with exceptions for delayed financing, inheritance and legal awards.
8. Appraisal and leverage. The appraised value sets the maximum loan. More cash out means a higher loan-to-value ratio, so the leverage limit caps how much you can take.
9. Underwriting decision and closing. The underwriter reviews income, credit, debt ratio and equity together. You receive a Loan Estimate and, before signing, a Closing Disclosure.
How Much Equity Can You Reach?
Equity is where cash-out files differ from other refinances. On conventional loans, the maximum is 80% loan-to-value on a one-unit principal residence. It is 75% on two- to four-unit principal residences, second homes and investment property. Occupancy sets the leverage.
One wholesale lane reaches 89.99% loan-to-value with no mortgage insurance. It requires a 680 score, a 50% ratio, a thirty-year fixed rate, a primary residence, a conforming balance, and its own six months of seasoning. It is the single exception to the usual rule that mortgage insurance applies above 80%. Exact terms depend on lender and investor guidelines, credit profile, reserves, and property review.
Texas homestead cash-outs are capped at 80% of the home’s value by the state constitution, and the wholesale no-mortgage-insurance lane is not written there.
Credit and ratio limits matter too. The wholesale conventional programs start at a 620 decision score, with a total ratio ceiling of 50% on files where the automated finding governs. Manually underwritten loans use 36% or 45% ratios, with reserve and score factors from the Eligibility Matrix. All figures are subject to lender guidelines.
Check Lendmire’s cash-out refinance programs page to see how leverage varies by occupancy and program.
A Scenario in Plain Words
Picture a homeowner with two children, ages 6 and 15, who has received court-ordered support through a state agency for more than a year. The oldest child’s support ends in a few years. The younger child’s runs much longer.
The lender reads the order child by child. Support tied to the older child may fail the continuance test if it ends too soon, while the younger child’s portion can count. The qualifying income is the portion that passes, grossed up if nontaxable. The debt ratio then reflects that income against the new, larger loan.
This is the budget cliff. When the older child’s support ends, real household income drops, even though the loan payment stays. The lender tests continuance for approval, but only you can test whether the budget survives the end date. Gross-up helps the debt ratio. It does not put one extra dollar in your checking account.
Where the General Rule Breaks
Several situations change the answer:
| Situation | What happens | What to bring |
|---|---|---|
| Support ending soon | May not count | Order showing end date, children’s ages |
| No written agreement | Voluntary payments do not count | Decree or court order |
| Under six months of receipt | Barrier under Fannie Mae | Bank records, agency history |
| Irregular payments | Counted only to the extent consistent | Full deposit record |
| Pending order | Not yet documentable | Wait for the final order |
Streamlines are not cash-out loans. The FHA Streamline and the VA IRRRL refinance an existing government loan with limited documentation. Neither pulls cash, so child support income is not the issue there. A government cash-out is fully underwritten under standard income rules.
Limited cash-out versus cash-out. A rate-and-term refinance pays off the existing first mortgage, closing costs and a purchase-money second, with only incidental cash back. Fannie Mae allows the lesser of 2% of the new loan amount or $2,000. Freddie Mac allows the greater of 1% of the new loan amount or $2,000. Paying off a non-purchase second lien, such as a home equity line used for other spending, converts the loan to a full cash-out.
VA files. The VA Pamphlet 26-7, Chapter 4 says lenders must tell borrowers they need not divulge child support. It also says support a borrower pays is a liability, and that residual income uses actual income only, not grossed-up amounts. A debt ratio over 41% needs compensating factors, such as residual income exceeding the guideline by at least 20%. Lendmire’s related piece on the VA cash-out refinance program when child support counts as income covers that path.
Support You Pay Versus Support You Receive
Received support is income. Paid support is a liability, or in some programs a reduction of income. Both can sit in the same file. A borrower who receives support for one child and pays for another gets both treated, so the net effect on the debt ratio depends on the amounts.
Alimony and child support follow similar documentation rules, but child support depends on the children’s ages, and alimony depends on the stated duration.
Include It or Leave It Out?
Use this decision path:
1. Run the file without child support first. If the debt ratio and credit clear, you may not need it.
2. If the file needs it, check the paper trail. Decree, six months of deposits, and a clear end date.
3. If the end date is inside the continuance window, expect that portion to be excluded.
4. Use it only if the budget works after the support ends.
Leaving support out protects privacy. Including it can raise the loan you qualify for. Neither choice is wrong.
Build the Paper Trail Before You Apply
Deposit support into one account so the receipt history is easy to read. Pull the decree and any modification orders. Request payment records from the child support agency if payments run through the state. Note each child’s date of birth against the order’s end date.
Do not wait until underwriting asks. Missing records are what stall files, and the lender can only count what the file proves.
Key Terms Defined
Continuance: the length of time the lender expects support to keep arriving, based on the order and the children’s ages.
Gross-up: raising nontaxable income by a factor so it compares fairly with taxable income in the debt ratio.
Debt-to-income ratio: your monthly debts divided by your monthly income, the main test of what you can carry.
Seasoning: the minimum time you have held the property or loan before cash-out is allowed.
Limited cash-out refinance: a refinance that pays off the loan and costs with only a small amount of cash back.
Loan-to-value: the loan balance divided by the appraised value.
Frequently Asked Questions
Do I have to tell the lender about child support?
No. A lender may ask only after telling you disclosure is optional. You bring it forward if you want it counted, and then you document it.
How long must I have received it?
Expect a six-month history to be the working standard, as the two agencies set it out in the proof-of-receipt step above. A shorter record is a barrier on most conventional files.
What if my child ages out soon?
The lender reads the order and each child’s age, and support that ends too soon may not count. Ask your loan officer to run each child separately, since the answer can differ from one child to the next.
Do informal or voluntary payments count?
Not without a legal agreement. A separated borrower with no written order cannot count proposed or voluntary payments.
Can a streamline refinance pull cash out?
No. The FHA Streamline and VA IRRRL refinance existing government loans with limited documentation and generate no cash.
Next Step
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Program figures are subject to lender guidelines, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging FHA, VA, conventional and jumbo purchase and refinance loans through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Regulation B, 12 CFR Part 1002 (eCFR)
2. Fannie Mae Selling Guide B3-3.4-02
4. VA Pamphlet 26-7, Chapter 4
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a Lender Weighs Credit and Income on a Cash-Out Refinance · Can You Get Approved for a Cash-Out Refinance After Changing Jobs or With Variable Income? · How a Lender Counts Paid-Off Cards in Cash-Out Refinance DTI
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.