FHA and tax payment plan with the IRS. Do I disclose?

[GG33]

I recently was pre-approved for a FHA mortgage.  I wasn't even planning to buy right now but I found a house that was a good deal and decided to go for it.  I owe back taxes to the IRS from 2010 and am on a payment plan.  I have made 18 payments so far and have never missed a payment.  I only have 4k left on the debt and was waiting to see how much my tax refund this year will pay it off.   There was never a lien and it's not on my credit report.  

I didn't even think to disclose this to the LO.  

They have my bank statements and it shows a payment for both months to a pay tax service.  I signed all the initial papers over a week ago.  I was asked to provide written statements for two things on my bank statments this week but no one said anything about this.  Now I'm not sure what to do.  The monthly payment will not even come close to disqualifying me on my monthly debt-to-income ratio.  I just feel like an idiot and I hate disclosing it in the first place because I find it embarrassing.

Should I tell the LO?

[pizzadude]

Yes, you should inform your loan officer, as you are required to detail all of your financial obligations when applying, even if they aren't on your credit reports.   Don't want it to come back to bite you later.

[GG33]

From everything I've read, it shouldn't be an issue right?  Since I have over 12 months of payments, am in payments...there is no lien and my debt-to-income ratio is fine.

[pizzadude]

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@GG33 wrote:

From everything I've read, it shouldn't be an issue right?  Since I have over 12 months of payments, am in payments...there is no lien and my debt-to-income ratio is fine.

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I'll let the mortgage pros confirm, but I think you'll be fine, since it won't impact your DTI ratio.

[BrianB_The_Loan_Professor]

Yes tell them right away - it will come up and when it does you will want them to already know about it

You are correct as long as the debt to income ratio isnt impacted you should be fine - you have made payments for the required min 12 months 

so it should fly through

Brian

[jasonnewrate]

Typically lenders want to see atleast 6 months of payments have been made on  payment plan. Your monthly payment of your taxes will also be included in your DTI which may have an impact.