When must income from child support be disclosed by a single parent applying for a real estate loan?

The correct approach for disclosing income from child support when applying for a real estate loan aligns with the requirement that it be disclosed if the payment was relied on for loan repayment. This is significant because lenders need a comprehensive understanding of the borrower's total income to accurately assess their ability to repay the loan. Child support can serve as a consistent income stream for many single parents, and if it contributes to meeting the loan payment obligations, it must be made known to the lender.

This requirement also supports responsible lending practices, enabling mortgage providers to make informed decisions about the risks associated with a borrower’s financial situation. When child support is indicated as a source of income essential for loan repayment, it allows lenders to adequately evaluate the borrower's stability and capacity to fulfill monthly payments.

Other options may refer to disclosing child support in specific scenarios or conditions, but they do not encompass the broad requirement of using it as part of the total income for loan evaluation. Hence, the necessity of disclosure is directly tied to its role in ensuring that the borrower can meet payment obligations.