FHA and IRS payment plan - missed a payment

[tooleman694]

Hello All, we are about to go into underwriting for our new home. I do have a payment plan with the IRS for taxes owed back in 2017. I make the payment every month. However I was looking back at my payment history, and looks like I forgot to make a payment last July. I have since made all payments on time. This is not a tax lien.

Is this something UW might find and kill the whole process?

[AlmostNJ]

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@tooleman694 wrote:

Hello All, we are about to go into underwriting for our new home. I do have a payment plan with the IRS for taxes owed back in 2017. I make the payment every month. However I was looking back at my payment history, and looks like I forgot to make a payment last July. I have since made all payments on time. This is not a tax lien.

Is this something UW might find and kill the whole process?

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You are fine. IRS does not report to credit bureaus. 

[ShanetheMortgageMan]

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@tooleman694 wrote:

Hello All, we are about to go into underwriting for our new home. I do have a payment plan with the IRS for taxes owed back in 2017. I make the payment every month. However I was looking back at my payment history, and looks like I forgot to make a payment last July. I have since made all payments on time. This is not a tax lien.

Is this something UW might find and kill the whole process?

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Likely would just need to provide a letter of explanation.  Helps if you can show you had the funds, just forgot to make it.  

[ShanetheMortgageMan]

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@AlmostNJ wrote:

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@tooleman694 wrote:

Hello All, we are about to go into underwriting for our new home. I do have a payment plan with the IRS for taxes owed back in 2017. I make the payment every month. However I was looking back at my payment history, and looks like I forgot to make a payment last July. I have since made all payments on time. This is not a tax lien.

Is this something UW might find and kill the whole process?

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You are fine. IRS does not report to credit bureaus. 

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You are right, they don't report unless it's a tax lien, but with an IRS payment agreement the lender needs to verify the payments have been made on time.

[AlmostNJ]

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@ShanetheMortgageMan wrote:

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@AlmostNJ wrote:

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@tooleman694 wrote:

Hello All, we are about to go into underwriting for our new home. I do have a payment plan with the IRS for taxes owed back in 2017. I make the payment every month. However I was looking back at my payment history, and looks like I forgot to make a payment last July. I have since made all payments on time. This is not a tax lien.

Is this something UW might find and kill the whole process?

---

You are fine. IRS does not report to credit bureaus. 

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You are right, they don't report unless it's a tax lien, but with an IRS payment agreement the lender needs to verify the payments have been made on time.

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I'm sorry but I have no experience with that. 

[tooleman694]

I asked the LO about it, they needed my last IRS payment statement. I said I can provide the last 6 months that are available and they said they only needed one. Looks like they need it for my DTI.

But I have searched this board for this stuff and wow it ranges from showing one month, to 3 months and up to 12 months. I guess ill find out what kind of overlays UW has.

[Pony4her]

Yes, they typically factor it into your DTI.  Good luck with your future home, sounds like you are closer to closing.