February 7, 2015
A reader asks, “We have applied for a FHA loan and until yesterday, had no idea that that someone had filed a tax return under my social security number back in 2012. I have submitted the proper forms to the IRS, and they have my accurate 2012 tax return on file. Because I submitted the tax return late, I have never been contacted by the IRS regarding this.”
“It was not until I called to set up a payment program for the taxes that I owe, that it was brought to my attention. Is this a 100% deal breaker for the loan, if my account is under review for identity theft? Can the underwriters still get the tax information that they need or is all my information frozen? I am bring $100.000.00 to the table towards this loan and this is my wife’s dream home! Is there anything that I can do to not lose this deal? I am being told that this will take a minimum 180 days to be resolved. “
Unfortunately this reader’s question is best answered by the lender–lender standards may dictate what can happen in situations like these, especially where debts to the government are concerned.
That said, a borrower who has made arrangements to the government’s satisfaction (such as a tax payment plan) may be able to get an FHA home loan, but the repayment plan would definitely count in the borrower’s debt-to-income ratio.
The borrower should discuss the situation with the loan officer to see what lender standards might apply. Disputed accounts with enough evidence may be able to be reviewed at the lender’s discretion depending on circumstances.
But there’s no way to know without discussing the matter with the lender–FHA loan rules and minimum standards may apply, but so do the lender’s, and the two may be very different. The lender may have more strict requirements than the FHA minimums.
Do you have questions about FHA home loans? Ask us in the comments section. All questions and comments are held for moderation/review.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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