Before we get into this topic, let’s get a little history on FHA Loans before we dive into FHA Loan With Tax Lien. FHA Loans are government-insured mortgage loans that offer extremely lenient income and credit requirements and are by far the most popular mortgage loan program used here in the United States. Given the number of homes seeking to be had by first-time homebuyers and borrowers with less than perfect credit, you can see why FHA Loans are so popular. The United States Department of Housing and Urban Development or HUD for short is the parent of the Federal Housing Administration or FHA which makes the rules and requirements for FHA Loans. The rules and requirements can be found in the HUD 4000.1 FHA Handbook which was recently updated towards the end of 2015. In here, you will find the rules to be had with the 2016 FHA Loan With Tax Lien. Let’s not get confused, FHA itself is not a mortgage lender but rather a government enterprise that takes on the role to guarantee FHA Loans that are originated by mortgage lenders and private banks who are FHA approved.
Even before we get the getting approved for a FHA Loan With Tax Lien, you need to first know and meet the minimum requirements for FHA Loans, or this is all for nothing. First of all, FHA has a very low down payment requirement of 3.5% and you can qualify for this with a FICO credit score of 580+. Even borrowers with 500-579 FICO credit scores will be approved as long as they have 10% down payment. With regards to your back-end debt to income ratio which is the total amount of monthly debt obligations divided by your gross monthly income can be 56.9% as long as your FICO credit score is 620 or greater. If you do not have at least 620 FICO credit score, the back-end debt to income ratio gets reduced drastically to 43%. Aside from your FHA Loan With Tax Lien, FHA will also lend to borrowers with Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, Foreclosure, Deed in Lieu of Foreclosure, Short Sales, and even Collection and Charge Off Accounts. Granted each of these derogatory items have their own requirements before a loan will be approve, but you can get approved nonetheless.
Alright, let’s get down to it, you are looking for a FHA Loan With Tax Lien and want to know what your options are if you satisfy all the previous requirements. Well to start with Tax Liens and Judgments are probably the worst thing you can have on your credit report in the eyes of FHA. FHA will allow a FHA Loan With Tax Lien as long as you have a written payment agreement with the IRS, Judgment Creditor, or Collection Agency. You can still qualify for an FHA Loan without having to pay off these liens or judgments in full as long as you have your payment agreement. If you have made at least 3 payments to this agreement and can provide the cancelled check from the payment you will be able to get a FHA Loan With Tax Lien. The one final key here is that you cannot prepay for these monthly payments. The payments need to be spread out over three months and there is no getting around that.
As you can see, you might be fighting a slight uphill battle with trying to get a FHA Loan With Tax Lien but it can be had as long as you meet all the requirements. This could be a tricky slope to navigate, so go in there with a professional like myself at Loan Consultants. Feel free to call me any time at 888-900-1020, email me at firstname.lastname@example.org.