Applying for a mortgage with tax lien

[PEKKCoJo]

Hi can you please help me.. My hubby and I are looking to apply for an fha loan within the month is possible. Hubby has a tax lien that's been negotiated on his behalf but he hasn't made any payments yet, will this be a issue in securing a fha loan? What should I do if anything?

[dobirdsmommy]

YMMV  but my husband and I have a state tax lien, that even though we have been making payments in an agreement for almost a year, we need to pay prior to closing.

If it is federal,  they usually ask for 4-12 months of payments before they will issue you a case number. FHA I think asks for 6 months but the lender might have their own stipulations. Our federal is no lien just payment arrangements for the past 3 years now. But as I said YMMV

[terminalhockey11]

I showed 2+ years of payments to satisfy the loan condition with my lender.   

You may want to go into the DDIA/Fresh Start program.  If eligible you can have it automatically debited from an account and after 3 payments can petition to have the lien's removed from the report.  I'll be entering this program after we close to get them off the reports.

One of the other items is that most lenders are hesitatnt to do payment plans for multiple years if that is part of the payment plan.

Good luck, it's doable as we are scheduled to close (lock desk willing) next Friday