06-15-2012 04:16 AM
06-15-2012 05:28 AM
06-15-2012 06:01 AM
I guess my first question would be:
does the IRS show on your credit report?
If it does not, and you are making payments, that is not a big deal. LOTS of people owe the IRS and are making payments...
06-15-2012 06:03 AM
I am undergoing UW fro a FHA loan. We owed $3K for our 2011 and was told since it is fed taxes it would be included in our DTI regardless of the length of the payment plane. We went ahead and PIF to avoid that. Otherwise, it would have only increased our DTI. There were no other isse surrounding it. Good luck!
06-16-2012 01:57 PM
06-16-2012 09:36 PM
I am pretty sure you have to have 12 payments on the plan to be considered.
I had a tax issue, and my LO said it is up to underwriting descretion.. Once you are on a payment plan, you are no longer 'delinquent' so you can pass FHA requirements... it is up the lender tho. Mine indicated they would want at least 9 months of on time... my debt was about 7k, so I just paid it and looked for a better closing deal from a seller.
01-14-2013 03:58 PM
bumping this theead.
I have an IRS PP which is voluntary. (Although the amount of course isn't voluntary hehe). It doesn't show up on credit reports.
Why even report it on the loan app? I guess since it's FHA they will find out.
When i switched to USAA Banking/Inusrance they were able to see I owed the IRS taxes but they couldln't see anything more than that.
I still owe around 12k so I'm not interested in paying mine off, but I'm also not interested in it affecting my DTI. We do payment plans on debts all the time that don't count towards our DTI so why should this?
My daughter's band instrument wouldn't impact my DTI..........