credit score and mortage qualify

Anonymous · ‎07-12-2009

My question is whether to use my savings or credit card to pay an IRS mistake to the tune of $8100.00 I have savings of $7,000.00.

We also want to purchase a home in the next year, and my broker indicated i cannot use credit for down payment. I think my credit will take a hit by using the credit card, but I also want to have savings on hand for down payment.

Any advice?

Thank you.

Anonymous · ‎07-12-2009

Are you paying the IRS to qualify for a mortgage? You can have an outstanding lien and still get a FHA loan. Since you plan to purchase next year call the IRS and setup a montly payment plan. The lender would like to see at least 12 months of payments according to what everyone says here. I have yet to see anywhere where FHA specifically requires that but anyhow keep the cash on reserve. IRS will subordinate for a home loan. Also, if they extend this $8,000 tax credit you could use that to pay for it when right after you purchase the home.

Anonymous · ‎07-13-2009

Thank you for your response.

Could you elaborate on "IRS will subordinate for a home loan?" Thanks again.