With FHA financing, the FHA/HUD doesnâ€™t require back owed IRS or state income taxes to be paid if there have been regular and timely payments on the tax debt (most lenders require a 12 month history). Having it payroll deducted, particularly if you've been with your employer for awhile, shows a lender there is an excellent chance that you will not default on your payment plan unless you happen to lose your job (and then your payment plan would not be at the top of your lenders worries).
See web reference for more information if your tax debt is an actual tax lien. Is it a tax lien?
What is the other $2,600 in debt? Collections & charge-offs? If so, when did the accounts go to collection?
I researched this and depending on how long you have been making payments on your tax bill. We have a investor that says if you have been paying on your tax bill for a year or longer. We still would be able to get a deal done.
Now concerning your credit score I know that was 2011 when you wrote this question I would believe your credit score is much higher now.
Give me a call I will be happy to discuss this and more and work with you.
Joseph A Ray
NMLS # 204912
Branch Manager Maryland Licensed in MD, DC
Sutherland Mortgage Services, Inc. NMLS # 9891
10015 Old Columbia Rd, Suite B215 Columbia, MD 21046
cell +1(443)303-7573 fax +1(866)833-4210 office +1(410) 290-6244 http://www.sutherlandmortgage.com
2013 â€“ RECEIVED THE â€œPINNACLE AWARDâ€ BY THE BBB, WHICH IS THE HIGHEST HONOR IN REAL ESTATE CATEGORY
2012 â€“ AWARDED AS â€œWINNER OF DISTINCTIONâ€ BY THE BBB.
Your best bet is to call a loan officer who can prequalify you for a loan and let you know more details about your individual situation.
Please let me know if you would like a recommendation. I have a few lenders who would be happy to talk to you!
Keller Williams Excellence Realty