Do property taxes have to be current when doing a FHA refinance?

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  • DeeDee
    Lv 6
    1 decade ago
    Favorite Answer

    not necessarily. The delinquent tax could be paid at the closing of the refinance. However, FHA might not look favorably on a borrower who isn't paying their taxes and think they might be a bad credit risk.

    Source(s): legal - real estate closer
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  • Anonymous
    1 decade ago

    Generally, yes. The title company's job is to insure that the title to the property is clear.

    The state always has first lien position, as far as property taxes are concerned. So the title company will require them to be paid at closing, in order to guarantee to the bank that the bank doesn't have a defaulted lien in front of them.

    Source(s): 10 years in mortgage banking
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