Home Buying in Ypsilanti>Question Details

Lucy, Renter in Ypsilanti, MI

i haven't file taxes in 2 years, income 73,000/yr, i probably owe federal& state. can i purchase a house sending $ monthly the irs? monthly

Asked by Lucy, Ypsilanti, MI Sun Jan 30, 2011

debt 624 should i payoff my balance to the irs first, then buy a house. i wanted to spend up to 80000 for my first home. is that possible? my credit score 659

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Hi Lucy!

As stated many times below, it's a good idea to get square with the IRS. I'm not sure if anyone actually answered your question though. If so, then pardon me.

I'm guessing your question is, can you buy a home if you have set up a payment plan with the IRS? I would (guess) the answer would be yes. As long as you file your taxes and are making good on what you owe I don't see that prohibiting a loan approval.

Please consult a mortgage lender for more accurate info.

Whatever you do though...Get right with your Uncle!!

Jonas Mancuso
Remax / Lakeland
1 vote Thank Flag Link Mon Jan 31, 2011
I'm kind of in that same boat. The IRS hasn't contacted me yet, but I also want to buy a house and I have the cash to pay for it in full. Would I be safe to buy a house and then square up with the IRS? If I do, will the IRS place a lien on my house or on my credit. Self employed and haven't filed in several years.
0 votes Thank Flag Link Sat Apr 11, 2015
You can file a tax return for both years, but it it best to talk to a CPA. Let him do the returns so you know what you you owe.
Are you self employed? Have you saved your receipts and business expenses?
This would be the first step to know what you are up against.
I have an excellent one in Canton, if you want to email me your contact information.

Then you will know if you can find a home right away. They will have to be filed before you can purchase as a lender will need to see them before loaning you money for a mortgage.

There are programs in Michigan that loan with a credit score of 659.
0 votes Thank Flag Link Mon Jan 31, 2011
Tax returns are required with the standard income documentation when you apply for a loan. There is also a form called a 4506-T which you grant the bank the right to order a copy of your tax return directly from the IRS. Chances are, without tax returns on file, you're going to have a difficult time getting an underwriter to approve your loan.
I'm not an underwriter, and I can't approve or deny anyone, but I've done mortgages since 1998 and strongly suspect this would get caught along the way. Your best advice would be to meet with a lender and start the process, before you go looking at homes. If you apply for Pre-approval with your situation being clearly understood by your loan officer, you can find out for certain what the best solution will be.
Since filing and paying your taxes will likely be part of the solution, you can start this process right away to find out exactly what your liability will be.
0 votes Thank Flag Link Sun Jan 30, 2011
Before paying your taxes, I would definitely buy a house.

That way the IRS will have something to attach a lien to when they find out you owe taxes.

You need to talk to a tax attorney tomorrow about your unpaid taxes. If you're income is $73,000 a year and you have had no withholding (which makes you self employed I would guess) the tax bite should be around 15 percent of your income - plus penalties.

And you can probably forget about getting a mortgage. If you don't have tax filings from the last two years to show your mortgage officer, you won't get a loan.
0 votes Thank Flag Link Sun Jan 30, 2011
Call an accountant and/or an attorney.

If you've made $144,600 over the last two years and haven't filed or paid any taxes, it's only a matter of time before you hear a knock at your door.

Also, any mortgage lender is going to request your income tax returns for the last two years.
Imagine their surprise when you tell them that you've not bothered with those pesky things.
0 votes Thank Flag Link Sun Jan 30, 2011
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