repayment agreement

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 [...]

2018-07-25T07:58:20-05:00July 24th, 2018|

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 [...]

2018-06-01T13:02:38-05:00February 22nd, 2018|