Stupid question about back taxes and FHA approval

[Anonymous]

I owe back IRS taxes and I'm sure this will come up during underwriting. I qualify for the $8K HB tax credit and was wondering if an underwriter will take this into consideration when reviewing my loan package? I owe quite a bit less than the $8K that I will able to get back.

Thanks for any and all answers.

[Anonymous]

all back taxes must be paid prior to close.  The only exception is if you are in an IRS approved repayment plan and have made 12 consecutive on time monthly payments.  Probably not wha tyou want to hear, but you have to have all federal taxes paid and any liens or judgements against you paid.

[Anonymous]

Any chance that the underwriter will miss it? 

Does it matter how the taxes are paid? I'm pretty sure that I can 'scrape' the money together but what if I got a personal loan from a family member?

[Lel]

---

melanhicup wrote:

Any chance that the underwriter will miss it? 

Does it matter how the taxes are paid? I'm pretty sure that I can 'scrape' the money together but what if I got a personal loan from a family member?

---

Maybe I'm mistaken about this, but I think you are/were required to disclose your back taxes on your loan application.

In the "Declarations" section of the Uniform Residential Loan Application, item f asks: "Are you presently delinquent or in default on any Federal debt or any other loan, mortgage, financial obligation, bond, or loan guarantee?"  I would think that unpaid back taxes represent a delinquent Federal debt.

If you are required to declare this, then it seems unlikely that the underwriter would miss it.

[Anonymous]

UW request copies of your w2 from the IRS directly which will show how much you owed, and whether it has been paid.

No, you can not get a loan to do so.  They will require all funds used to be verified.  Any large deposits or withdrawls will be analyzed.

Taking out any loan (family or not) without disclosing it to the LO and UW is mortgage fraud.

[Anonymous]

So, can this be added as a contingency on closing? I can pay the back taxes on my own but I don't want this to get in the way of closing. I'll alert my LO to the situation and have the info passed on.

Also, can I show proof that the debt has been paid in the form of cancelled checks, debit/cc receipts, etc. or will it need to come directly from the IRS?

[Anonymous]

From what I understand, you need to pay it right now.  It can take awhile for it to officlaly clear your tax account and for all info to be updated.  until your file is fully cleared and showing zero balance, they will not underwrite the loan.  (I think)