You’re ready to buy a home—but you owe the IRS. Will it stop you from getting approved for a mortgage?
The short answer: not always—but it can complicate or block your loan if you’re not proactive. Whether you’re looking to buy in Gwinnett, Fulton, or anywhere in Georgia, understanding how back taxes affect home buying can help you avoid costly surprises.
At Back Tax Rescue, we help taxpayers clean up IRS issues so they can qualify for mortgages, refinance, or move forward without IRS interference. This guide breaks down everything you need to know.
💼 Can You Qualify for a Mortgage If You Owe the IRS?
Yes, you can sometimes qualify for a home loan even if you owe back taxes—if you’ve taken proper steps to address the debt.
Mortgage lenders will usually:
- Check your credit report
- Ask about tax liens
- Require proof you’re in an IRS payment agreement
- Request documentation that shows the debt is being handled
📌 If you haven’t made arrangements with the IRS, many lenders will deny your mortgage application—even with good credit.
🏦 How Different Lenders Handle Tax Debt
✅ Conventional Loans (Fannie Mae/Freddie Mac)
You can qualify if:
- You’re in a current payment plan with the IRS
- You’ve made at least 3 on-time payments
- No federal tax lien is attached to your credit or property
- You can provide IRS transcripts or proof of agreement
✅ FHA Loans
FHA loans also allow approval if:
- You’re in a repayment plan
- You’ve made at least 3 consecutive payments
- You cannot pay the debt off at closing (or must prove financial hardship)
❌ VA & USDA Loans
These loans are stricter:
- You must be in a formal payment agreement
- You often need to be fully compliant on past and current tax years
⚠️ What If You Have a Federal Tax Lien?
A tax lien can seriously damage your loan chances because:
- It appears on your credit report
- It gives the IRS legal claim to your assets
- It creates title complications for mortgage lenders
But there’s good news: The IRS may withdraw or subordinate a lien if:
- You’ve entered into a formal payment agreement
- You’ve filed all missing returns
- You submit Form 12277 (Request for Withdrawal) or Form 14134 (Subordination Request)
Back Tax Rescue can handle this process on your behalf to help you move forward with buying your home.
📄 Documents You May Need to Provide
To get lender approval, you may need to show:
- Copy of your IRS Installment Agreement
- Proof of 3+ consecutive payments
- Most recent IRS account transcripts
- Letter from the IRS confirming your account is in good standing
- Evidence that you’ve filed all required returns
🧠 How Back Tax Rescue Helps Homebuyers
We’ve helped homebuyers across Georgia resolve tax problems fast so they could close on time.
We will:
- Verify and resolve any tax debt or missing filings
- Establish a payment plan with the IRS
- Help you make the required 3 on-time payments
- Request lien removal or subordination if needed
- Provide your lender with all necessary tax documentation
- Communicate directly with underwriters, if required
🏠 Real-World Example (Fictionalized)
Jessica in Alpharetta owed $14,000 in back taxes and had a lien on her credit report. Her loan was denied just weeks before closing.
We contacted the IRS, got her into an installment plan, and filed for a lien subordination. After 3 on-time payments and a supportive lender, she closed on her new home in under 90 days.
📞 Want to Buy a Home but Owe the IRS?
Don’t let tax debt delay your dream of homeownership. With the right steps, you can still qualify—and we’ll help you get there.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Schedule a Free Tax Review for Mortgage Approval »
Let’s fix the tax issue and get you the keys to your new home.
