Me- 681 Equifax / / Wife has over 750 credit...but one thing

[Anonymous]

I have some baddies on my credit.

$838 to Arrow   DOL April 2003

$459 to 1st Premiere  DOL April 2003

Capital One - $0 balance / paid balancd

Pinnacle - $0 balance / paid balance

The rest of my accounts are in good standing, two of my 3 credit card accounts have 0 balance, CL's of 2000 and for the last 2 years, I've been on time with everything.

In 2000, I got in some trouble with the IRS, they placed a lien on my credit in May of 2003.  I was considered "un-collectable" for some years after that.   I finally established a payment plan account that I have been paying monthly for over two years now and am in good standing.  I still have a balance around 15k.  I have paid back over half of what I initially owed.

I currently file married but separate so my wife doesn't risk getting her return applied to my balance owed.  She owns a house in her name.  We're missing out on the tax breaks a normal married couple would because of this.

We are outgrowing our current house, no kids and we're starting to want a new house so we can have kids.  This is the beginning of this process.  I wanted to know where I stand.  If anybody has any insight, it would be greatly appreciated.

THanks,

[ShanetheMortgageMan]

The Arrow/1st Premiere/Capital 1/Pinnacle shouldn't pose any issues at all getting approved - they are real ancient history at this point.  The amount owed to the IRS won't have to be paid in full either as long as you can provide the payment history showing all payments in the past 12 months were made on time, however the payment to the IRS will be included in your debt to income ratio for qualifying purposes.  In order to determine if you can qualify for the new home, you'd have to lay out your income, your monthly debt payments on the IRS, car loans, student loans, credit cards, etc., the sales price range of the new home, and if you aren't going to be selling her home before you buy also the mortgage payment on that so it can be included in the debt ratio, or if you will be selling her home before you buy then it won't be a factor then.

[Anonymous]

Also, it makes no sense to loose writeoff's/credits just so your wife's return will not go towards your debt. 

First off, getting it paid off sooner is a plus.

Second, that is exactly the type of stuff you should use tax retunrs to pay towards, debts, etc.

Third, if you are overly concerened about this, have the monthly deductions lowered on your checks.  Then you both have more after tax income monthly, and you are getting the most out of the tax breaks that are available to you.  Hopefully this would allow you to alos get that tax lien paid off quicker.