can you get an fha mortgage with tax lien and some judgements

Welcome radkinsjr,

In order to qualify for an FHA loan, you should have at least 1 year of clean credit report. All judgments should be paid off in full prior to closing. If a collection account requires a low payment, you need not pay it off in order to get the loan approval.

Federal debt such as tax liens often prevents one from qualifying for an FHA loan. You need to arrange for payment of such debts so that you can get the loan approval.

thanks for your reply, I am working on clearing them up, fortunately its only a few. I just wanted to be certain what I heard was true. Thanks

My credit is good except for an old federal tax lien that I will never be able to pay off. Is there any chance of getting a mortgage?

Hi cindylu!

A tax lien will definitely harm your credit score but I think you can get a mortgage. Speak to a lender and check the options available in your case.

Thanks,

Jerry

I have 2 judgements on my report one goes back to 1995 they renewed it in 04, and I have another one from an old landlord in 04 . what are my chances of getting a loan. my fica score is about 640 ?

Hi Lisa,
We would have to look at the entire situation and it would be up to the Underwriter. However, it would be best to settle the situation and have the judgement paid.

We've been conditionally pre-approved for our first mortgage through FHA, but I just got a letter saying that there's been a default judgement (for about $3,000) awarded against me. Our credit scores are fine other than that. Is this going to prevent us from getting a home loan? How long does it take for a judgement to appear on our credit reports? And if they do require us to try and resolve it, do we have to pay the whole thing off or could we set up a payment plan instead?

the judgement was for an old credit card...sorry, forgot to mention that. Also we're in Texas, if that helps. Thank you!

Hi becky

As far as I know, a judgment stays on your credit report for at least 7 years. It will also affect your credit. It will be better if you can pay off the old credit card debt. If you pay it off, it would be listed as "satisfied" and be expunged after the 7 years expired. It will be the lender's discretion whether he will give you the loan or not.

Thanks.

We would like to get a VA loan, however we have a tax lein appx 25,000. our income is recently at 100k, could we qualify for a loan, if we set a payment plan. We were on a plan originallly, we had to default, not sure if they would re-set up again for us...afraid to call. Any chance we would qualify, credit score are about 630.

As far as I know, a lender will not be ready to give a loan if you have a tax lien on the property. "We were on a plan originallly, we had to default, not sure if they would re-set up again for us" Did you already had a mortgage on the property which you have defaulted? In that case, you should speak to the lender and check out if you can get an option for loan modification or not.

I am preparing to build a home which should be finished in Sept. I have taken steps to despite and correct items on my credit report as well as applied for a secured credit card to help boast my credit score. Everything is going well, except I will owe taxes for 2007 about $5000.00. Will owing taxes prevent my FHA loan to get approved if I have started setting up payment plan.

hi renee,

any tax liens placed on the property can prevent you from qualifying for an fha loan. but if you have worked out a repayment plan and have made payments on time for the past six months, you can qualify. you can also qualify if the lien holder subordinates the tax lien and takes a second mortgage position.

thanks,

jerry

renee, you'll have to hope you find the right lender. allowing a tax lien is up to the lender, and many will require that you have it paid off.

A tax lawyer told me that a judgement would be on the credit for 10 years and then come off, I believe that was from roni duech that only deals with taxes owed to irs. Thats who I have.