Do i need full tax returns for an FHA mortgage the problem I have is that I owe back taxes and am currently paying them off. Or do I just need W2's and paystubs?
You will need full tax returns, as well as signing a form for an IRS transcript. You will need W-2s, paystubs, bank statements, retirement account statements, driver's license, social security card, explanations of deposits over a certain amount, explanations for any baddies on your CRAs, rental agreements, and the DNA of your firstborn. At the very least. They will likely want to see copies of your installment agreement as well as proof of it being paid.
What if you owe back taxes (no liens on my report), but the IRS has put you in an "Uncollectable" Status? I had planned on going with an FHA + utiliizing a down payment assistance program, which only requires you to come with 1% of your own money + a 30yr silent 3%.
When transcripts are requested, would this trigger the IRS to go "Oh no you won't get a house! Here, have a lien or two!"?
Yeah, if you're planning on any sort of government loan/government assistance it's very likely going to come up.
Plus it's illegal not to disclose a liability when you're applying. My guess is the IRS isn't going to think the debt isn't uncolletable if you plan on trying to buy a house...