Posted on: 07th Feb, 2010 06:28 pm
I have an IRS tax lien (over $18,000) on my credit report. I have a payment installment agreement set up with the IRS, in which I have been making payments for over a year. It will take me approximately ten years to pay this debt off. Is there any type of first time homebuyer loan I may qualify for with this current debt?
Hi princessicys,
If there is a lien mentioned in your credit report, the lender will want you to pay it off and then apply for a loan. However, as you've set up an agreement with the IRS and paying off the debt, you may be able to get a home loan. I would suggest you to speak to some of the local lenders of your area and check out what they have to say in this regard. You can even speak to the lenders of this community and seek a no obligation free mortgage quote. This will let you know whether or not you would get a loan.
If there is a lien mentioned in your credit report, the lender will want you to pay it off and then apply for a loan. However, as you've set up an agreement with the IRS and paying off the debt, you may be able to get a home loan. I would suggest you to speak to some of the local lenders of your area and check out what they have to say in this regard. You can even speak to the lenders of this community and seek a no obligation free mortgage quote. This will let you know whether or not you would get a loan.
From my experience you will not be able to obtain a home loan until the debt is paid in full or settled. Lenders can not take a chance with any government liens because they would supercede any mortgage not on the property.