Posted on: 27th Jun, 2010 09:40 am
I have a contract on a foreclosed home. I'm applying for FHA loan. I owe some taxes from last year. I do have a agreement in writing from IRS for payments over next 6 months. Will this be a problem with getting a mortgage? Or will I have to pay before closing? Just wondering since I have a payment plan with the IRS.
With payment plan in place it should not be an issue, but the payments will be calculated into your debt ratio. However, it also brings into question how you can afford a house if you can't even afford your taxes.
Thanks for the response. I have a very good debt to income ratio. I don't want this to end up being a huge problem going through the process. Still waiting for appraisal to be done then i'm sure the LO will let me know once we get the FHA loan process going. Just getting anxious about it.