Home Buying in Saint Paul>Question Details

msred00, Home Buyer in Saint Paul, MN

Can I buy a home if I owe the state of Minnesota?

Asked by msred00, Saint Paul, MN Mon Feb 25, 2013

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msred00’s answer
I've been doing some research and came across information on buying a home through a community land trust. It seems like a more affordable and easier way to buy a home. Does anyone have any information regarding the pro's and con's of a community land trust verus buying a home the traditional way?
0 votes Thank Flag Link Thu Mar 7, 2013
yes if you buy on a contract for deed you can buy a house and make payments to the state or pay it off in full. http://www.mnhomescontractfordeed.com/ramsey-county
0 votes Thank Flag Link Fri Mar 14, 2014
A couple good questions here. First, you can buy a home if you owe money to the state. The issue would be with getting a mortgage (you could use cash, or contract for deed if you're really desperate!). So the answers below seem to relate to your ability to obtain a mortgage, and they are sound answers - it all depends on the nature of the debt you owe the state and if the is a payment plan in place.

For the community land trust you will need a mortgage. For information about land trust pros and cons, you can contact the Rondo Community Land Trust in St. Paul at 651-221-9884, and Community NHS, also in St. Paul, at 651-292-8710. Community NHS is also a great resource for first time home buyers and for credit issues. Best of all, most of their services are free!
0 votes Thank Flag Link Tue Apr 16, 2013
Hi, msred00!
It really depends on what you owe them for. Is it a tax debt or what? In any event, it will be taken in to consideration by your lender to determine if you're a good credit risk or not. That's how they do it.

If the debt is a judgment, then it might be dicier than if it's tax repayment or something like that.

Good luck!
0 votes Thank Flag Link Mon Mar 4, 2013
Hello Susan!! It's a school debt. It started at $12k and now is at $4k. I've been making payments on the debt.
Flag Thu Mar 7, 2013
Hi msred,

It really depends on what kind of debt it is. If it is a judgment, delinquency or a defaulted obligation, you will likely need to pay it off. If it is simply a payment plan for state taxes that are owed (meaning you owed money based on your MN return, that in and of itself would not preclude you from obtaining a mortgage.
0 votes Thank Flag Link Wed Feb 27, 2013
I'm not a loan officer, but I am married to one and I will tell you that you will have to have a payment arrangement made with them so that the mortgage lender can qualify your house payment with your other payments like the state.
0 votes Thank Flag Link Wed Feb 27, 2013
Asking a lot of questions I see. Your best bet at this point is to just speak with a good loan officer that can handle "challenging clients". Some lenders really are not that interested, knowledgeable, or have the tools to help qualify buyers. I know because I have fired many of them.

Sometimes you can get paralyzed by doing too much online browsing for information. If you need to build up the credit profile to purchase ( in other words you are 6 to 9 months away from buying) it is best to speak with a loan officer now and get started. The longer you wait will only delay when you can finally buy.

I am working with a client right now that can qualify to buy, but over the years has gotten really bad information on lending. It is just like everything else in life, and the only way to avoid it is speak directly to the people in control of financing.

If you want a referral I send all of my clients (about 50%) over to a specific loan officer that I think is excellent. Just get in contact with me and I will be more than happy to help you out.
0 votes Thank Flag Link Tue Feb 26, 2013
Possibly, however not real likely.

What type of debt do you owe?

Are you now on a payment plan?

Are you presently past due?

How does it show up on your credit report?
0 votes Thank Flag Link Mon Feb 25, 2013
I think you will be OK then for that specific item. You will need 640 scores for FHA, and all lenders want to see 3 different types of credit in good standing for the previous 12 months. I would still say your best bet is to just speak directly to a LO and have them run an application. Otherwise good luck! Reach out to me if you have any questions or want a good refferal
Flag Wed Feb 27, 2013
Its a school debt from Century College. Yes, I am making payments on the debt. It started at $12k and now is at $4k. That's the only negative account on my credit report.
Flag Tue Feb 26, 2013
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