Are you struggling with tax problems and want to buy a house? Well, you’re not alone. In our latest episode, Carlos Samaniego, the host of a tax debt consultant podcast and YouTube stream, received an email from a listener who was facing the same predicament.
Carlos brought in Anna Cervantes, a mortgage consultant and real estate broker, to discuss the feasibility of purchasing property with tax issues. Anna is a member of various professional associations and has helped several of Carlos’s family members with VA loans and homes in San Diego.
So, can you buy a house if you have tax problems? The answer is, it depends on getting your finances in order. If you want to qualify for a mortgage loan, it’s critical to have a tax obligation agreement or installment agreement with the IRS, and your monthly payments will be considered as debt.
For first-time homebuyers, FHA loans are popular government programs that have lenient credit requirements, but you need to make three payments before you can apply for the loan. If you’re considering other loans such as Fannie Mae or conventional loans, you may be required to make a single payment, but they have other requirements, such as a better credit score or a bigger down payment.
However, if you have a tax lien, your ability to get a mortgage may be severely impacted. A tax lien supersedes any other lien and can prevent you from buying a home. It’s, therefore, critical to resolve the tax lien, and the only way to remove it from public records is to pay it off completely.
It’s also important to remember that lenders require verification of income and taxes through a 4506C form, so if you have outstanding taxes or haven’t filed income taxes, it could lead to potential complications. The IRS is sending eight million notices over the next few weeks to people who owe them money, so it’s essential to address any tax issues before starting the home buying process.If you’re in the middle of buying a home, you only have 30 days to close the loan, and failing to disclose a tax lien can result in losing your initial deposit and can be seen as lying on the loan application. In a nutshell, the bottom line is this: if you have tax problems and want to buy a house, it’s crucial to get your finances in order, pay off any tax liens, file your income taxes, and address any outstanding tax debts before starting the home buying process.
If you need help getting your tax affairs in order, Carlos highly recommends contacting Anna, who has a proven track record of helping people buy homes despite their tax problems. If you’d like to learn more about tax debt consultations, head over to TaxDebtConsultant.com that you can check out as well.
Thanks for tuning in, and we’ll see you next time.
Best regards,
