!!!! Closing in Two Weeks / Back Taxes

[divorcesucks]

I am self employed (S-Corp) ... closing in 15 days April 2025  .... LO just emailed to say "the tax transcript" shows $10k in unpaid taxes for tax year 2023, and I will owe for tax year 2024 as well, but it didn't show up.  I don't have enough cash for down payment AND pay the tax bills, as my accountant wanted me to ammend the returns.

I have worked sooooo hard to build my credit back to 786 (mortgage 5,4,2) !!!

Loan Amount $241,000 ... PITI $1800 (just under) .... no other payments (car, credit card, NOTHING) ... average monthly income $5350 for the past two tax years 

Any loan officers on here with advice / direction.

TIA !!!

[ShanetheMortgageMan]

You'll either need to pay the income taxes or set up a payment plan with its payment included in your DTI.  A lot of times the payment plan can be set up on IRS's website once you log into your personal account.  Sounds like your DTI should be able to easily absorb a payment, but check with your LO first on how much of a payment you can absorb and still qualify.  If your figures are correct then it should be possible up to around a $870/mo payment, but again, check with your LO.

[divorcesucks]

Thank You

  I just read the USDA  U/W guidelines and I have to show 3 payments.  OK back to panic mode.  (insert very worried emoji face)

[ShanetheMortgageMan]

Can you take out a personal loan to pay the IRS in full?  Then you won't have to wait for the 3 months of payments, you just use the new personal loan payment in your DTI.

[divorcesucks]

Great Question!   I will investigate!   Thank You!