Can I be approved for my FHA loan with back taxes owed.?
I just filed back tax returns for several years and had the IRS date stamped the returns at their office. I do, however, owe back taxes but do not have any liens. My lease is up and new tenants are moving in. I'm afraid of loosing both homes. Will the underwriter use this against me? What can I do immediately to ensure my FHA loan will not be tossed. My credit is great and my debt to ratio as of now is fine. Help!
- Bostonian In MOLv 71 decade agoFavorite Answer
You normally need to provide 3 years of tax returns to get a mortgage. If it shows a balance due, the underwriter is going to be asking for proof of payment. Assuming that you're going to set up a payment plan with the IRS, that will factor into the debt-to-income ratio. The FHA generally wants your housing cost (PITI) at or less than 27% of gross monthly income and total credit including housing at or less than 36%. Total credit includes housing, credit cards, tax payment plan, car loans, etc. Run the numbers and see where you sit.
- Anonymous1 decade ago
The back taxes may not show up for several months. since they can't file a lien yet.
However, the FHA loan people might want a copy of your Federal Taxes for the past three years.
If so, forget the loan.Source(s): 50 years CPA
- loungLv 43 years ago
likely you will no longer qualify even alongside with your mothers and fathers as a co-signer given the quantity of debt as against income. you would be asked to teach your final 2 years of tax returns - in case you have earned extra beneficial than $33K gross for all the final 2 years and have the deposit and shutting expenditures stored, you won't want a co-signer. discover a loan broking provider that is familiar with approximately FHA loans and have him/her attempt to get you pre-authorized.
- ernesthintonLv 61 decade ago
Is there a lien or levy on your credit report?
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- 5 years ago