Using Child Support & Alimony as Income
Child support and alimony (spousal support) count as qualifying income if documented with a court order or divorce decree and proof of consistent receipt for at least 6-12 months. The payments must be expected to continue for at least 3 years after the mortgage closes. This additional income can significantly increase your purchasing power. For example, $1,500/month in child support adds approximately $75,000-$90,000 of home buying power depending on the interest rate and other debts.
Low Down Payment Programs
FHA loans require just 3.5% down with a 580+ credit score — on a $500,000 home, that's $17,500. Conventional HomeReady and Home Possible programs allow 3% down with income limits (up to 80% of area median income). CalHFA offers deferred down payment assistance that doesn't require monthly payments. USDA loans offer zero down in eligible rural areas. Gift funds from family members can cover the entire down payment on FHA and conventional loans.
CalHFA & State Assistance Programs
CalHFA's Forgivable Equity Builder Loan provides up to 10% of the home price as a forgivable second loan — no monthly payments, and it's forgiven after 5 years. The CalHFA MyHome Assistance Program offers up to the lesser of 3.5% of the home price or $15,000 as a deferred second mortgage. Income limits apply (typically $180,000-$250,000 depending on the county and household size). These programs can be combined with FHA or conventional first mortgages through Save Financial.
Budgeting for Homeownership
Beyond the mortgage payment, plan for property taxes (roughly 1.1% of home value annually in California), homeowners insurance ($1,200-$3,000/year), HOA fees if applicable, maintenance (budget 1% of home value/year), and utilities. The total monthly housing cost should not exceed 28-33% of your gross monthly income including child support. Save Financial's mortgage calculators can help you model the full cost of homeownership on a single income.