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

i saw on another site that a paid judgement stays on your record for 7 years and is as bad as bankruptcy?

As far as I know, any negative item will stay in your credit report for 7 years and will have a negative impact on your credit score. However, if you pay off a judgment, then the negative impact on your credit score would be less.

a judgment - especially a paid judgment - will not have the same effect as bankruptcy. think about it...a bankruptcy allows a debtor to write off several different debts, while a judgment is strictly relevant to one debt, and the payoff of a judgment is a positive move, as opposed to letting it sit on the report. and yes, negatives stay on the report for 7 years.

Will a tax lien prevent me from qualifying for a mortgage loan, if I have an installment agreement with the IRS?

As you've an installment agreement with the IRS, I don't think you would face problems in getting a loan. I would suggest you to contact your lender and apply for a loan.

I currently working and have a income of 125,000/year. I owe IRS 46,000
I am currently in the process of making payment arrangements. My credit
score is 613,650,639. I do not own any property. I also have a medical
judgement that was paid by my insurance company. This judgement remains on my credit report despite numerous letters to Credit Companies. Will I qualify for a first time home lone today.

With an IRS tax lien and medical judgment on your credit report, it would be difficult for you to qualify for a loan. You can talk to the local lender and check out if they can help you in this regard. There are high chances that you won't be getting the loan due to the negative items on your credit report.

letters to credit companies alone are insufficient to eliminate collections and charged off accounts, though they ought to be. provide documentation that shows payment in full, and you'll be okay.

I have learned that both underwriters and loan officers are totally incompetent on this issue. FHA and Va guidelines expressly state that you can get an FHA or VA loan with an IRS lien if you have a satisfactory arrangement with the IRS - not payment plan - arrangement - they are not the same.

You need to shop around for a broker who can state to you they know the guidelines - anyone interestd can simple google VA loan guidlines handbook

Bobby, your criticism is a little harsh. What "guidelines" state isn't necessarily the end of the discussion. Many lenders are choosing to ignore the liberal nature of the guideline and they're going with a more conservative approach. Just because you're allowed to do something won't mean you're going to do it.

I don't take issue with your recommendation that people seek out someone who can lend per guidelines, but to say these folk are incompetent because of this issue isn't right. They might be incompetent for a lot of other reasons, but not necessarily here....it all depends on how their individual companies choose to interpret the guideline.

My husband and I are trying to purchase a house. The value of the house is approx. $325,000.00 and we are able to buy it for $300,000.00. We are able to make a down payment of $60,000.00. Our credit rating is around 610 showing all recent debts being paid on time. Because we have a federal tax in for $90,000, employment taxes we have been told by many people that we not never be able to purchase a house until it is paid. We have been on a payment plan with the Irs for more than 2 years and have made every payment on time. It is possible for us to get a mortgage?

Hi Denise!

Welcome to forums!

As you have a federal tax lien, you will have to pay it off before getting a mortgage. Lenders will not give you a mortgage unless you clear off the dues. It is good that you have a payment plan with The IRS. This will help you in paying off the dues quickly and then you can apply for a mortgage.

Feel free to ask if you've further queries.

Sussane

I had a tax lien filed on me in jan 2010, of 18000 and have arranged payments on it and i am still in good standing with it. I have recently got married in oct 2009 and my wifes credit score is 760 and my score is 630. My income is 175000 year and my wifes is 25000 a year. Is it possible we could get a loan.

Hi papajohn,

As far as I know, unless you pay off the tax lien, the lenders will not be ready to give you a mortgage to buy a property. However, I hope your wife does not have the tax lien mentioned in her credit report. She has a good credit score as well. Thus, she will be able to apply for a mortgage in her name.

Thanks

hi guys..im in the same boat as the others but the lien we have on our house for 2k is from a credit card company.
i already told the mortgage broker about this and now the underwriter approved our loan with some conditions and we met 2 out of 3...the last condition was that we pay off that 2k lien on our house. the house is on my wifes name and mine but shes the primary owner sort of. i acquired the credit card at the time my name wasnt even on the house yet and she has nothing to do with that card but i guess we live in a community property state it is now considered hers too. is this a regular fha guideline to ask to pay off the credit card lien first before our loan can be approved? to me it sounds stupid , reason why were trying to refinance is because we need the money. the 2k lien is guaranteed to get paid and included on our loan contract so i dont see why the underwriter is making such a big fuzz over that 2k.

the way i look at it is if they approve it the 2k is in the contract and guaranteed fund to pay for that lien. its not like were not going to pay it.

our income to debt ratio is at 40% so i don see why we have to pay for the lien now ..its not like were trying to get our income to debt ratio down and by paying off the lien would help..that is not the case .

the only thing ths holding this loan back is the 2k lien..the problem is we dot have 2k right now. we cant borrow any money because thatll probably raise our income to debt ratio and its not even sure if we can even qualify for a 2k loan

any suggestions is greatly appreciated