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Can I get a VA loan if I owe the IRS?

Posted on: 04th Jun, 2010 03:39 pm
Hi. I just entered into a tax repayment installment agreement with the IRS. Will this prevent me from qualifying for a VA loan? I have no lien currently against me. Payments are taken out of my paycheck. One broker said that lenders will be scared off because the IRS would automatically lien my new house putting the lender in 2nd position. Is this true? Please help me understand my options.
Thanks
Hi jpodpora,

As you are paying off the back taxes to the IRS as per the payment plan, you may be able to qualify for a VA loan to buy a new house. As you are paying the dues, the IRS will not not place a lien on your new property.

Thanks
Posted on: 04th Jun, 2010 09:08 pm
Hi Jpodpora,

As long the IRS never obtained a judgment (lien) against you and you are making payments on time that you can document, you'll be fine as long as meet the VA underwriting requirements.
Posted on: 08th Jun, 2010 08:06 am
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