Mortgage Loans

[vinylpalooza]

Yup another one. Self employed and filed 2012 last week mailing 2011 today.

I guess my question is do i need pay full balance owed for 2011 ($6,700 with penalties) and 2012 ($8,000) or just 2011. I understand a payment plan will need several payments made on it to get approved for an FHA loan.  Just paying 2011 is taking my down payment savings away. If 2012 needs paid in full im done and im a renter for another year.

[slappymancuso]

Check with your LO or broker. I am also self employed, and our lender has been absolutely adamant that we cannot owe any taxes. Worse, even paying them takes 2-3 weeks to be reflected in transcripts. Best of luck!

[Mike_B03]

Weird, neither our loan officer or loan processor has said anything about us needing to pay our taxes in full. We only owe $1550 so we're going to pay it in one payment anyway, but it was never brouhgt up, they just said they need copies of our 2012 taxes once filed. We are also self employed.

[vinylpalooza]

Likely depends on lender and what type. I was going FHA through a small lender in Florida Patriot.

[MovingForward_2012]

I owe taxes from 2006 and I have been on a payment plan for 7 years and they will finally be paid off with this year's refund. The payment plan with the IRS was not an issue. I am closing within a week.

[MovingForward_2012]

I should add that lenders typically want to see the repayment plan in effect for 6-12 months.

[vinylpalooza]

But most have said you need to have been making payments 3 months to a year to get approved, i have a closing scheduled for March 26th. I was planning to get a payment plan setup but it appears i will not have time.

My main concern is 2012, i filed that electronic last week, will that year need be paid in full also. I know 2011 will.

[Mike_B03]

Did the underwriter require that you provide them with 2012 taxes before you could move forward? Taxes aren't due until April 15th, and since you close in March, it shouldn't be a requirement for you to show them 2012 taxes.

[MovingForward_2012]

If they said you need to have been on a repayment plan for at least 3 months and you stick to closing by Mar 26th, you will have to pay the full amount but they may roll it into the loan.

[vinylpalooza]

I had to file 2 returns and 2011 and 2012 is all i have as a new business.

I have only gone through pre approval picked a house had the offer accepted so far. Contract is on its way. Im preparing for the horror stories ive been reading here now.

Trying to be ready when they come and they will.