Lenders count alimony the way they count a paycheck once three things are on paper: the order or agreement that sets the amount, proof the money is arriving, and enough time left on it. For a Florida buyer, that last piece depends heavily on which kind of alimony the judge awarded.
What each program asks for
| Program | Proof of payments | How long it must continue | Gross-up when untaxed |
|---|---|---|---|
| FHA | Most recent 3 months | At least 3 years | 15% |
| Conventional (Fannie Mae) | Most recent 6 months of full, regular, timely payments | At least 3 years from the application | 25% |
| VA | How long and how regularly you've received it, and whether it can be enforced | Likely to continue | Based on current tax tables, for the debt ratio only |
The paperwork is your final divorce decree, separation agreement or court order, plus bank statements or deposit records showing the payments. USDA counts alimony too, and like the other programs, it wants the payments documented and likely to continue.
Under IRS rules, alimony paid under a divorce or separation agreement signed after 2018 isn't deductible for the person paying it and isn't taxable to the person receiving it. Lenders raise untaxed income so it compares fairly with wages that have taxes taken out, which is called a gross-up. On $1,400 a month of untaxed alimony, that's $1,610 on FHA and $1,750 on Conventional. Alimony under an older agreement is usually taxable and counts at face value.
Florida alimony types and the three-year rule
Section 61.08 of the Florida Statutes sets how long each kind of alimony can run, and that decides whether a lender can count it.
| Type | Longest it can run | Can a lender count it? |
|---|---|---|
| Bridge-the-gap | 2 years | No, it can't reach three years |
| Rehabilitative | 5 years | Yes, while at least 3 years remain |
| Durational | 50% of a marriage of 3 to 10 years, 60% of 10 to 20 years, 75% of 20 years or more (not available after a marriage under 3 years) | Yes, while at least 3 years remain |
| Temporary | While the divorce case is open | Rarely, since it ends when the case does |
After a 12-year marriage, durational alimony can run up to 60% of 12 years, or 7.2 years. Received for 9 months with 6 years left, it counts on every program. Permanent alimony is no longer among the types the statute lists, though some older decrees still carry it, and lenders treat those payments as long-lasting income.
A worked example
Rachel's divorce agreement was signed after 2018, and her decree pays her $1,400 a month in durational alimony with five years left. She's received it on time for eight months. She earns $3,300 a month as a dental office manager, and her car and card payments are $250. Here's FHA at a 5.75% rate, with property tax at 0.95% of the price a year (the high end of the 0.74% to 0.95% range QualRate uses for Florida) and insurance of $283 a month:
| Wages only | Alimony at face value | Alimony grossed up 15% | |
|---|---|---|---|
| Qualifying income | $3,300.00 | $4,700.00 | $4,910.00 |
| Highest FHA price | $181,000 | $275,000 | $290,000 |
| House payment | $1,543.48 | $2,198.10 | $2,302.55 |
At $290,000, the payment is $1,661.71 in principal and interest on a $284,747.38 loan (including the 1.75% upfront mortgage insurance premium), $229.58 in property tax, $283.00 in insurance and $128.26 in monthly mortgage insurance. That's 46.9% of her income for housing and 52.0% with her debts. Counting the alimony adds $109,000 to her price.
If you're the one paying alimony
Alimony you pay counts as a monthly obligation in your debt-to-income ratio when more than ten months of payments remain. Fannie Mae gives Conventional lenders another option: subtract it from your income instead of counting it as a payment. Take a buyer earning $5,000 a month who pays $600 in alimony and has no other debts, against Conventional's 50% total limit:
- Counted as a debt: $5,000 × 50% = $2,500, minus $600, leaves $1,900 for the house payment.
- Subtracted from income: ($5,000 − $600) × 50% = $2,200 for the house payment.
That's $300 a month more room for the house, from the same paycheck and the same alimony.
If your alimony can't count yet
- Build the payment record. FHA counts alimony after three months of documented payments, and Conventional after six.
- Write the length into the agreement. If your divorce is still being negotiated, a term of at least three years from your planned purchase is what lets a lender count the payments.
- Add a co-signer. A parent's or sibling's income is added to yours on FHA and Conventional loans.
- Use FHA 100% financing. A down payment assistance second covers the 3.5% down, from a 580 credit score, so the settlement money can stay in savings.
Enter your wages and your alimony, with the gross-up if it's untaxed, in the QualRate calculator to see your price on each program. Then call AAA Capital Funding at 888-601-8344 with your decree in hand, and we'll check the three-year math against your purchase date.