Tag: federal tax lien

Fannie Mae – Payment of Federal Income Taxes: Does FNMA require proof that the federal income taxes due for previous year have been paid?

Answer: There are no requirements in the Fannie Mae selling guide that require a lender to show proof that federal income taxes have been paid from a prior tax year.  However, Fannie Mae does have a section on how to handle delinquent taxes in section B3-6-07, Debts Paid Off at or Prior to Closing (01/30/2018) or […]

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FHA – Federal Tax Agreement: How many payments does my borrower need to make on a federal payment plan before they can buy a home? [NEW MC Chart-Federal Tax Lien Requirements-All Agencies]

Answer: Your borrower has to make 3 payments prior to closing, and they cannot be pre-paid.  See the full guidelines below. Reference: 4000.1 II.A.1.b.ii.(A)(12)-(13) Tax liens may remain unpaid if: the Borrower has entered into a valid repayment agreement with the federal agency owed to make regular payments on the debt; the Borrower has made […]

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FHA – IRS Installment Agreement: What are the Fannie Mae & Freddie Mac guidelines for a borrower with an installment agreement with the IRS?

Answer: FHA requires a 3-month payment history on delinquent federal tax debt. Also note that it is within the underwriter’s rights to view the continued accumulation of unpaid tax debt on a yearly basis as a derogatory reflection on the borrower’s financial management.  There may be additional questions from underwriting asking for an explanation regarding […]

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Fannie Mae & Freddie Mac – IRS Installment Agreement: What are the Fannie Mae & Freddie Mac guidelines for a borrower with an installment agreement with the IRS?

Answer: Good news if you can meet the following guidelines. Fannie Mae just rolled out with a new option for qualifying a borrower with a Federal Tax Obligation.  Freddie Mac does not have anything like this in place yet, just Fannie Mae.  See excerpt from the Fannie Mae selling guide below, which was just added […]

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