Can I Qualify For FHA Loan With Tax Lien?

FHA Loans are by far the most popular residential mortgage loans today. FHA Loans are not just for mortgage loan borrowers with bad credit or low credit scores. The Federal Housing Administration, FHA, is a subsidiary of the United States Department of Housing and Urban Development, known by many as HUD. FHA’s function and role is not to originate or fund residential loans. FHA’s function is to insure residential mortgage loans to FHA approved private mortgage lenders such as banks and mortgage companies. In order for FHA to insure mortgage loans against default from the mortgage loan borrower, the FHA mortgage lender needs to follow strict FHA mortgage lending guidelines. If the loan package does not or did not meet FHA mortgage lending guidelines when it was originated and funded and the FHA Loan goes into default, FHA will not insure the mortgage loan. This is why FHA mortgage lenders are very strict in requesting proper documents and need to verify that the mortgage loan borrower meets all FHA mortgage lending guidelines. FHA has extremely generous mortgage lending guidelines, more so than conventional loans, VA Loans, and USDA Loans. You can qualify for FHA Loans with 3.5% down payment on a home purchase with a 580 FICO Credit Score.  FHA does not count medical collections and charge offs and you can have medical collection accounts with balances and still qualify for FHA Loans. Can you qualify for FHA Loan With Tax Lien? The answer to this question is yes.

Can You Qualify For FHA Loan With Tax Lien And Unpaid Judgments?

Tax liens and judgments are probably the two worst derogatory items you can have on your credit report. The great news is that you can qualify for FHA Loan With Tax Lien as long as you have a written payment agreement with the Internal Revenue Service.  The mortgage loan borrower with the tax lien also needs to have made at least three monthly payments to the Internal Revenue Service and three months canceled checks and/or bank statements needs to be provided to the mortgage loan underwriter.  A mortgage loan borrower cannot prepay the full three months of tax lien payments all at once and consider that being in compliance. FHA requires that you make at least three months worth of payments and need to wait three months.

Same with judgment. You do not have to pay off the unpaid judgment in full to qualify for a FHA Loan. You can qualify for a FHA Loan as long as you have a written payment agreement with the judgment creditor and have made at least three months of payments to the judgment creditor. Three months of canceled checks and/or bank statements needs to be provided to the mortgage loan underwriter. You cannot just enter into a written payment agreement and pay the three months worth of monthly payments all at once and qualify for a FHA Loan With Judgment. FHA requires that you have made at least three months worth of payments and three months of seasoning is required in order to qualify for FHA Loan With Judgment.

If you are interested in qualify for FHA Loan With Tax Lien, please contact me at 262-716-8151 or email me at gcho@gustancho.com. I will be able to help you. My staff and I are available 7 days a week, weekends and holidays included.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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