fha loan please help

[8ways2learn]

can i still get a loan if i haven't fill taxes in 2 years but i have my w2

[Lel]

Why didn't you file taxes?  Were you required to do so?

[8ways2learn]

yes i didnt file because i always owe them and i am planning to use that 8000 to pays it when i file

[Anonymous]

No offense but that doesn't make a lot of sense. If you haven't filed in 2 years but the tax credit is new this year, how could you have planned to pay taxes with the home buyers credit? Unless you mean you just didn't pay taxes and now want to buy a house to use the credit to pay the taxes?

Also, if you don't have money to pay your taxes, how will you have money to buy a house? You'll still need several thousands if not tens of thousands (depending on loan type and purchase price) for down payment and closing costs.

[Anonymous]

they will mosty likely require taxes to be filed and paid.  Also, if IRS has sent you into their "collections" dept, that would likely show up and you would have to get that fixed before you could buy a home. 

Again, as stated previously, the UW is not going to consider you waiting to file taxes until you get the credit as a positive sign or an excuse to not have filed taxes.  Also, by not filing and not paying, you have just doubled the amount of penalties because you are now getting charged BOTH failure to pay and failure to file fees.  these fees can easily add up to as much as the actual amount owed.

Given the lead time required to make arrangements with the IRS (you would have to file the taxes and them be recorded before IRS could make any payment arrangements, etc) it would be hard to get this done prior to the tax credit expiring. 

There is alwasy the chance you could slip through the system and they not catch the tax issue, but it is unlikely.

[8ways2learn]

Thanks, I have my loan pre- approve and i have picked out the house,i put down 5000 down and now i am receiving my final loan papers today and thats one of the condition on the paper.

 What happens if i file tomorrow and show them that 1040 will that be enough or i have to pay it off first

Message Edited by adebayo on 09-10-2009 07:47 PM

[8ways2learn]

and my closing date is sept 30 any advice

Message Edited by adebayo on 09-10-2009 07:46 PM

[Anonymous]

What exactly is the condition? Does your LO know you haven't filed AND owe money? Or are they just waiting for a copy of your filed taxes believing everything is in order and you just haven't produced the document?

I don't think you would receive final loan papers until you had met all the conditions. Sounds like you're still in the pre-approval process. We had to provide all documents before we had final approval.

I could be way off but it sounds like you've withheld this information from your LO and they're working under the assumption you'd easily be able to provide tax documents because they're already filed and in order.

I'm pretty sure you'd have to pay it off and have proof of received payment but you should talk to your LO to find out exactly what is required.

[Anonymous]

At this point you will have to show all taxes paid.  They will need to see proof that taxes are filed and they will probably expect to see proof of payment that does not interfere with your documented closing cash/reserves.  In other words, if the approval was based upon you haveing 10K at close and you showing 15K in reserves, you would not be able to use that combined 25K to pay the costs as they would have to then re-submit the loan minus the amount of assets you used to pay the taxes.

Also, you are playing a dangerous game.  Since you knowingly did this, you could be at risk of loosing your earnest money/deposit for not disclosing something that should have been addressed initially.  Not sure of the specifics and your contract, but if I did anything that killed the deal when I bought my house(for example, went out and bought a car in turn killing my financing), I lost my deposit.  If my bank could not loan to me but I acted in good faith, I was free and clear.

[Anonymous]

Also, today is the 10th and you are scheduled to close on the 30th.  It is highly unlikely you have any sort of final anything.  You have a pre-approval and have moved through some of the underwriting process.  You are still in processing or they would not be asking for tax documents.