This Article Is About HUD Tax Lien Guidelines To Qualify For FHA Home Loans
HUD, the parent of FHA, has created very lenient mortgage guidelines to promote homeownership for first time home buyers and borrowers with less than perfect credit to qualify for FHA Loans.
- FHA Home Loans are government-backed loans for owner-occupant primary home mortgages
- The role of FHA is to insure and partially guarantees to private lenders who originate and fund FHA Loans
- FHA has nothing to do with origination nor funding of FHA Mortgages
- FHA will partially guarantee and insure FHA Loans when borrowers default on their mortgages
- The loss sustained by lenders due to foreclosure, the Federal Housing Administration will partially guarantee the loss
- Due to this government guarantee, lenders are more than eager to originate and fund FHA Loans
- Borrowers can qualify for 3.5% down payment FHA Loans with 580 credit scores and with outstanding collections, charge offs, bankruptcy, foreclosure, deed in lieu of foreclosure, short sale, judgments, and tax liens
In this blog, we will discuss HUD Tax Lien Guidelines and how to qualify for FHA Loans with outstanding tax liens.
HUD Eligibility Guidelines For FHA Home Loans
HUD’s mission is to promote homeownership for first time home buyers and borrowers with less than perfect credit. Home buyers with credit issues can qualify for FHA Loans with outstanding collections, charge offs, judgments, and tax liens. HUD allows borrowers with a prior bankruptcy, foreclosure, deed in lieu of foreclosure, short sale to qualify for FHA Loans. Per HUD Tax Lien Guidelines, borrowers with tax liens can qualify for FHA Loans without having to pay the tax lien off in full.
HUD Tax Lien Guidelines In Qualifying For FHA Loans
Borrowers with outstanding tax liens can qualify for FHA Loans without having to pay the outstanding tax lien in full if the following is met:
- Make a written payment agreement with the Internal Revenue Service
- Need to provide proof they made three timely monthly payments
- The proof borrowers need to provide is three months of canceled checks and/or bank statements showing the withdrawal of the payments
If you have any questions about the information on this blog, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at email@example.com.
June 4, 2019 - 2 min read